Lagos expands CNG stations to ease fuel shortages

Lagos State will establish five new compressed natural gas (CNG) refuelling stations by November 12, the first step in a larger initiative to build a total of 29 outlets by 2028. The project seeks to reduce overcrowding at existing stations, where lengthy queues have discouraged drivers from adopting gas-powered vehicles due to rising petrol prices.

The government, acting through the Ministry of Energy and Mineral Resources, intends to open these five locations this month, increasing the total to 19 by the first quarter of 2027. An additional ten stations are scheduled for early 2028, with priority given to areas currently underserved beyond the established hubs in Agege, Ojota, and Oshodi.

Demand for CNG has increased as a more affordable option compared to petrol, but insufficient refuelling infrastructure has slowed its adoption. Vehicle conversion to CNG costs between ₦700,000 and ₦1 million, while refilling a 60-kilogram tank costs approximately ₦5,000, providing around 200 kilometers of travel range. Despite the lower ongoing fuel expense, the initial conversion cost remains a significant obstacle for many potential users.

Since January 2026, Lagos has prohibited new diesel-powered buses in its public transport network, mandating CNG or electric alternatives instead. This policy supports broader goals to lower emissions and reduce fuel expenditures, though its effectiveness depends on expanding refuelling infrastructure to keep pace with fleet expansion.

The state government has stressed the importance of certified engineers for all vehicle conversions to prevent equipment malfunctions or gas leaks. Without adequate refuelling stations, operators may face service interruptions or increased costs from longer trips to fill their tanks.

The Lagos Energy Summit, taking place from November 10 to 12, will address energy affordability, renewable energy development, and alternative transportation solutions. Officials will explore ways to accelerate the transition to cleaner fuels while maintaining cost accessibility for businesses and households.