Nigeria’s domestic gas market has posted a major boost this year, with sales rising by 19 per cent to hit N3.1 trillion within the first 10 months of 2025. Fresh industry data show that between January and October, the country recorded an additional 124,727.09 million standard cubic feet (MMSCF) — equivalent to 3.11 million tonnes — compared to the same period in 2024. This jump comes at a time when Liquefied Petroleum Gas (LPG) prices at Lagos depots stand at N19 million per 20 tonnes, reflecting strong demand across homes and industries.
According to numbers released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), local gas consumption has remained robust throughout the year. Monthly domestic sales fluctuated between 58,473.65 MMSCF and 72,966.26 MMSCF, maintaining a steady growth trend that outperformed last year’s figures. In comparison, domestic consumption in 2024 remained lower throughout the same 10-month cycle, showing how rapidly Nigeria’s internal market has expanded.
One of the biggest drivers of this growth is the Federal Government’s LPG export ban, which has improved domestic supply and put gradual downward pressure on cooking gas prices. Data from the National Bureau of Statistics (NBS) show that the cost of refilling a 12.5 kg cylinder has dropped from a peak of N17,283.58 in late 2024 to about N13,750 as of April 2025. On a year-on-year basis, domestic gas sales climbed 21.86 per cent in March alone, while export sales also grew by 18.90 per cent, highlighting a broad upward trend across the gas value chain.
However, the gains come against lingering challenges in the import market. Despite tax waivers introduced in 2024, shippers struggled to bring in an average 50,000 tonnes of LPG monthly due to the naira’s high exchange rate. Limited vessel operations meant only a handful of ships discharged product at Nigerian ports, far below national demand, which had climbed to 1.5 million tonnes in 2024. These supply hurdles contributed to the steep price swings seen earlier this year, with depot prices shifting between N20 million and N22 million per 20 tonnes.
Industry stakeholders continue to raise concerns over the dollar-based charges imposed by agencies such as the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA). The National President of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), Benneth Korie, recently criticised the practice, arguing that conducting local transactions in dollars only worsens cost pressures on marketers and, ultimately, consumers. As demand grows and Nigeria pushes for wider adoption of gas as a transition fuel, resolving these bottlenecks remains critical to sustaining the momentum in the domestic energy market.
source: newtelegraphs