Home Biz Renewables Lagos urges federal support for state-led clean energy projects

Lagos urges federal support for state-led clean energy projects

Key points

  • Lagos inaugurated Nigeria’s first integrated energy hub combining conventional and alternative fuels.
  • Gov. Babajide Sanwo-Olu called on federal agencies to work more closely with states investing in clean energy.
  • Ibile Oil and Gas Corporation plans to expand its CNG network to 19 stations across Lagos by the end of 2026.

Main story

Lagos State has called for stronger collaboration between federal energy regulators and state governments to accelerate Nigeria’s transition to cleaner energy, following the inauguration of the country’s first integrated energy hub in Oshodi.

Governor Babajide Sanwo-Olu made the call while commissioning the facility developed by Ibile Oil and Gas Corporation (IOGC), describing it as a practical demonstration of Nigeria’s energy transition agenda and a model that should be replicated nationwide.

The governor urged the Nigerian National Petroleum Company Ltd. (NNPC Ltd.), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other relevant agencies to remove regulatory bottlenecks and support states willing to invest in cleaner energy infrastructure.

The integrated facility combines Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), electric vehicle charging infrastructure and solar power in a single location, making it Nigeria’s first multi-energy hub.

Sanwo-Olu said the project would promote affordable transportation, improve business competitiveness, attract investment and support economic growth by reducing energy costs for businesses and residents.

Managing Director of IOGC, Mr Temitayo Gbajumo, said the corporation plans to establish 19 CNG stations across Lagos, with four already operational and 12 at different stages of development. Four additional stations are expected to commence operations by October, while the remaining facilities will be completed before the end of 2026.

He added that the energy hub also houses a cooking gas plant and a vehicle conversion centre where motorists can convert petrol-powered vehicles to CNG at subsidised rates.

The issues

Nigeria’s energy transition depends not only on national policies but also on the rapid deployment of infrastructure that enables consumers to adopt cleaner fuels. Integrated energy hubs that combine conventional fuels with CNG, LPG, electric vehicle charging and solar power could reduce transition costs, improve fuel accessibility and encourage wider adoption of alternative energy. However, scaling such projects will require regulatory coordination, investment and supportive policies across all levels of government.

What’s being said

“Energy transition is real. The message to all the federal agencies is simple: come and see what we have done here and support those who are ready to invest. Let us remove unnecessary delays and make the transition easier for Nigerians.” — Babajide Sanwo-Olu, Governor of Lagos State.

“When transportation becomes more efficient and affordable, businesses become more competitive, commercial activities expand, and residents enjoy a better quality of life. That is the vision this project represents.” — Babajide Sanwo-Olu, Governor of Lagos State.

“This is the first integrated energy hub of its kind in Lagos and the entire Nigeria. It brings together CNG, LPG, PMS and AGO in one location.” — Temitayo Gbajumo, Managing Director, Ibile Oil and Gas Corporation.

What’s next

IOGC will continue expanding its CNG infrastructure across Lagos, with additional stations scheduled to become operational in the coming months, while state authorities seek greater federal collaboration to accelerate investment in cleaner energy infrastructure nationwide.

Bottom line

The Oshodi energy hub demonstrates how states can support Nigeria’s clean energy transition through integrated infrastructure, but achieving nationwide impact will depend on stronger cooperation between federal regulators, state governments and private investors.

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