By National News Desk
Despite Nigeria’s position as Africa’s largest holder of proven gas reserves, households and businesses across the country continue to grapple with shortages and rising prices of Liquefied Petroleum Gas (LPG), commonly known as cooking gas.
Industry stakeholders and market analysts attribute the situation to a widening gap between domestic demand and available supply, as well as the preference of many producers for export markets where returns are more attractive.
Available industry data indicate that a significant portion of Nigeria’s gas production is exported, leaving a smaller percentage for local consumption. Analysts argue that this supply structure is no longer sustainable as the number of Nigerians relying on cooking gas continues to increase.
A recent industry report on Nigeria’s LPG production and supply outlook showed that national consumption has risen sharply over the past few years, while domestic supply has failed to keep pace despite increased production from new processing plants and refineries.
The report noted that Nigeria’s LPG market has undergone major changes, with domestic gas-processing facilities and refineries, including the Dangote Refinery and other local operators, contributing more significantly to supply. However, the growth in demand has continued to outstrip production expansion.
As a result, retail prices of cooking gas have surged across the country, with many consumers paying between N1,700 and N2,000 per kilogramme. Dealers warn that prices could rise further because many of the underlying challenges cannot be resolved in the short term.
Industry experts identified several factors responsible for the persistent shortages, including inadequate gas gathering and distribution infrastructure, poor storage capacity, pipeline vandalism, insecurity, foreign exchange volatility, regulatory bottlenecks and insufficient investment in the sector.
According to sector operators, many gas producers prefer exporting their products because international markets offer better pricing and stable foreign exchange earnings, leaving domestic consumers with limited supply.
Security concerns in the Niger Delta have also continued to disrupt production and transportation, while delays in the development of critical gas projects have slowed efforts to improve local availability.
The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGMA) said the situation has created serious hardship for millions of households, small businesses and food vendors that depend on LPG for daily activities.
The association warned that many families are returning to the use of firewood and charcoal due to the high cost of cooking gas, a trend that could worsen health challenges, deforestation and environmental degradation.
The marketers called on the Federal Government, regulators, domestic producers and other stakeholders to take urgent steps to stabilise the LPG market and improve local supply.
Industry leaders also expressed concern over the short and medium-term outlook, noting that addressing infrastructure deficits and attracting the required investment would require substantial funding and consistent government policies.
Experts maintain that Nigeria has the technical capacity to achieve self-sufficiency in LPG production through the combined output of major gas processors and refineries. However, they stressed that more gas-processing facilities, storage terminals and distribution infrastructure must be developed to meet growing demand.
Analysts further warned that unless the country expands its domestic gas infrastructure and strengthens policies that encourage local supply, cooking gas shortages and high prices may persist despite Nigeria’s vast natural gas resources.
Data from the National Bureau of Statistics show that the average price of cooking gas has risen significantly over the past decade, reflecting the impact of supply constraints, exchange rate pressures and other market forces.
