The Lagos State Government plans to commission five additional compressed natural gas (CNG) refuelling stations in November 2026, as it targets a network of 29 stations by the first quarter of 2028.
The disclosure was made by Tayo Gbajumo, Managing Director of Ibile Oil and Gas Corporation, during a media briefing on Thursday ahead of the 2026 Lagos Energy Summit, scheduled for November 10 to 12.
The expansion is intended to improve access to CNG across the state as motorists and transport operators explore alternatives to petrol amid elevated fuel costs.
However, limited refuelling infrastructure remains a constraint, with motorists facing long queues at existing stations.
Gbajumo said the Lagos State Government, through the Ministry of Energy and Mineral Resources, was working to expand CNG infrastructure across the state, with an initial target of 19 stations by the first quarter of 2027.
He said three stations are currently operating in Agege, Ojota and Oshodi, while five additional facilities are expected to be commissioned by November 12.
Gbajumo also said converting a vehicle to run on CNG costs between N700,000 and N1 million, depending on the equipment and standards used. He noted that a 60kg tank costs about N5,000 to fill and can provide a range of approximately 200 kilometres, depending on usage.
He added that Ibile Oil and Gas uses European-standard equipment and stressed that vehicle conversions should be carried out by certified engineers to ensure safety.
The CNG expansion announcement comes ahead of the 2026 Lagos Energy Summit, which the Commissioner for Energy and Mineral Resources, Biodun Ogunleye, said would bring together regulators, investors, energy experts, electricity distribution companies and innovators to examine developments across the energy sector.
Ogunleye said discussions at the November 10–12 summit would cover electricity supply, renewable energy, metering, energy affordability and mobility, including the adoption of CNG and electric vehicles.
The summit is expected to provide a platform for stakeholders to examine developments and practical solutions across the energy sector.
The planned expansion of refuelling infrastructure comes as Lagos is also tightening its alternative-fuel policy for public transportation. The Lagos Metropolitan Area Transport Authority (LAMATA) stopped accepting new diesel-powered buses into its regulated transport system in January 2026.
The agency had about 150 CNG buses before recently receiving 20 additional high-capacity buses under the Federal Government’s Presidential Initiative on Compressed Natural Gas and Electric Vehicles (PI-CNG&EV). Some of the additional buses were expected to serve the Ikorodu-TBS corridor.
The shift also comes amid rising diesel prices, which reportedly increased from about N950 per litre at the start of 2026 to between N1,950 and N2,100 per litre.
At the national level, the Federal Government is pursuing a broader CNG adoption programme, with PI-CNG&EV Chairman, Ismael Ahmed, proposing that commercial vehicles should eventually be required to transition to alternative fuels.
It is targeting the conversion of one million commercial petrol-powered vehicles by 2027.
Energy consultant Omid Hamidkhani has, however, warned that Nigeria’s gas reserves alone would not guarantee a successful transition without adequate supply and distribution infrastructure. He identified the need for investment in pipelines, CNG trucking and liquefied CNG infrastructure, alongside incentives to encourage private-sector participation.
