The technological trend towards waste utilization and cost reduction in industrial processing has attracted the use of Biogas energy system. In Nigeria, like most developing countries energy issues has moved higher in the development agenda of policy makers. This study focused on assessment of biogas energy awareness and utilization in three Local Government Areas, namely: Victoria Island, Oshodi / Isolo and Ikorodu of Lagos State, Nigeria. A total of Two Hundred and Ten structured questionnaires were randomly administered to respondents and One Hundred and Sixty – Three copies were retrieved for analysis. Thirteen research questions were tested, which was used for data collection to evaluate the awareness of the people and extent to which biogas is used apart from Fossil fuels in the selected areas of Lagos State. Descriptive statistics using Frequency and Percentage were employed in processing the data for the study. Findings from the survey showed that 14.72 percent of the respondents are aware of biogas usage, 22.08 percent accepted to be using it if it is made available and 15.34 percent believed that it is relatively costly to other sources of energy such as Kerosene and Industrial Gas. From the analysis, none of the respondents use biogas energy presently and the reason for this is due to lack of knowledge. Also, it was found that 83.44 percent of the respondents fall between age range of 11-40 years, this is an indication that biogas energy will be acceptable if it is encouraged and given priority. In addition, recommendations to overcome envisage challenges is to carry out a mass enlightenment campaign, to educate people by increasing public awareness of biogas energy technology through distributing simple explanatory pamphlets or using other media.