Nigeria’s CNG network expands to 160 stations, Lagos targets 29 by 2028

Nationwide CNG rollout

On 6 November 2026, the Federal Government announced that Nigeria currently has roughly 160 operational compressed natural gas (CNG) refuelling stations. A further 170 facilities are either under development or awaiting regulatory approval from the Nigerian Midstream and Downstream Petroleum Regulatory Authority. The announcement was made by Ismaeel Ahmed, Executive Chairman and CEO of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles, during the inauguration of a new CNG Integrated Refuelling Unit in Karu, Abuja.

Ahmed highlighted that private investors have committed about $2.6 billion to CNG infrastructure across the country. He said the President has ordered another round of infrastructure development, targeting around 500 new units to be commissioned through the Ministry of Development and Infrastructure Growth (MDGIF) between this year and early 2027.

Lagos State’s targeted expansion

In Lagos, the State Government has set a more detailed timetable. According to Tayo Gbajumo, Managing Director of Ibile Oil and Gas Corporation, the state will commission five additional CNG stations in November 2026. The plan is to reach 19 stations by the first quarter of 2027 and to have a total of 29 stations by the first quarter of 2028.

Currently, three stations operate in Agege, Ojota and Oshodi. The five new facilities are expected to be commissioned by 12 November 2026, as part of a broader effort to reduce long queues at existing petrol stations and encourage motorists to switch to cheaper alternative fuel.

Background

Nigeria’s move to CNG began as an experimental phase, but the recent data show a shift to mass deployment. The federal initiative, backed by the President, aims to lower transportation costs for the country’s 12 million vehicles and 220 million population. Private investment of $2.6 billion reflects growing confidence in the market.

Lagos, the country’s commercial hub, has faced chronic fuel shortages and congestion. The state’s energy ministry, through the Ministry of Energy and Mineral Resources, is working to expand the network across different parts of the city. The expansion aligns with the upcoming 2026 Lagos Energy Summit, scheduled for 10–12 November, where stakeholders will discuss renewable energy, mobility and infrastructure.

Why it matters

The expansion of CNG stations directly affects motorists and transport operators. Converting a vehicle to run on CNG costs between ₦700,000 and ₦1 million, while filling a 60‑kilogram tank costs about ₦5,000 and provides a range of roughly 200 kilometres. Limited refuelling infrastructure has previously caused long queues and high fuel costs. By increasing the number of stations, the government aims to reduce waiting times, lower fuel expenses and promote cleaner energy use.

The federal plan to add 500 stations by 2027 and Lagos’s target of 29 stations by 2028 represent a coordinated effort to scale up CNG infrastructure nationwide. This expansion is expected to improve access to alternative fuel, support vehicle conversions and ease pressure on existing petrol stations.

What happens next

The federal government will continue to push for the commissioning of the 500 planned stations, with additional facilities expected to come on stream between now and early 2027. Lagos State will commission five new stations in November 2026 and work towards the 19‑station target by Q1 2027, followed by the 29‑station goal by Q1 2028. The outcomes of the 2026 Lagos Energy Summit, held 10–12 November, may influence further investment and policy decisions.