Nigeria is increasingly relying on local production for its cooking gas needs, with imports falling to just 13% of total consumption in 2025. According to data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), domestic marketers supplied 45,800 metric tonnes of liquefied petroleum gas (LPG) out of a national total of 52,800 metric tonnes, highlighting the country’s growing self-reliance in the sector.
Despite the rise in domestic output, Nigerians continue to face high LPG prices. The average cost of a 12.5kg cylinder surged from N17,432 in January 2025 to over N20,600 by July, and prices spiked further toward the end of the year, depending on location. This price surge has placed significant strain on households, particularly low- and middle-income families who depend on LPG as a cleaner alternative to firewood and kerosene.
Investments in domestic gas processing plants, including the NLNG Trains 1–6, Dangote Petrochemical Refinery, and Gbaran-Ubie and Soku gas plants, now underpin the bulk of Nigeria’s LPG supply. Utilization rates at these facilities range from 53% to over 100% at some plants, demonstrating a strong production capacity. Yet, challenges like high transport costs, limited storage, and distribution inefficiencies continue to keep retail prices high despite an abundant domestic supply.
Monthly data for 2025 show domestic production consistently outpacing imports, often covering 80–100% of supply in most months. Imports only surged during peak demand periods in November and December, reaching as high as 32% of total supply. Overall, the average monthly supply stood at about 4,400 metric tonnes, with local producers firmly anchoring the market.
Economists, however, warn that prioritizing gas exports over domestic use could undermine long-term development. Professor Wumi Iledare emphasised that focusing mainly on exports, even if commercially attractive, neglects the potential for gas-to-power and industrial growth. He urged a balanced approach where domestic consumption, industrialisation, and strategic exports complement each other, ensuring Nigeria’s gas sector benefits households, industries, and the economy at large.
source: punch