Persistent Challenges Keeping Cooking Gas Expensive and Scarce in Nigeria

Nigeria, home to the largest proven gas reserves in Africa and rising production, is grappling with a shortage of Liquefied Petroleum Gas (LPG), commonly called cooking gas.

The shortage has continued to push up retail prices and added pressure on households and businesses across the country.

Data obtained from the Nigerian Upstream Petroleum Regulatory Commission indicated that 62 per cent of the country’s gas output in the first two months of the year was exported, leaving only 38 per cent for domestic use, the reports said.

A supply structure designed for a period of lower gas use simply cannot meet today’s demand, industry analysts warned.

National cooking gas consumption increased by 20 per cent to 1.8 million metric tonnes in 2026 from 1.5 million metric tonnes in 2023, an industry report titled Nigeria LPG Production & Supply Matrix (2023-2026) stated.

But the estimated supply at a national level was between 1.55 million and 1.65 million metric tonnes, resulting in a supply gap.

The report said domestic production has increased with contributions from facilities such as the Dangote Refinery, Nigeria LNG and a number of gas processing plants.

Retail cooking gas prices have soared due to the supply-demand imbalance.

In many parts of the country, LPG now costs between ₦1,700 and ₦2,000 per kilogramme, up from an average of about ₦1,100 per kilogramme earlier in the year.

Industry operators warned that prices could continue to rise if structural challenges are not addressed.

Experts identified a number of reasons behind the shortage including lack of sufficient gas infrastructure, prioritisation of exports, insecurity and pipeline vandalism, limited storage capacity and regulatory bottlenecks.

Nigeria does not have enough pipelines, storage and processing facilities to move gas efficiently from production fields to consumers, an industry stakeholder told Reuters, speaking on condition of anonymity.

Producers also prefer export markets because they tend to give better returns and more stable foreign exchange earnings, he said.

The Nigerian Association of Liquefied Petroleum Gas Marketers said the situation had caused severe hardship for households and businesses.

The association’s National President, Edu Inyang and Executive Secretary, Bassey Essien said the rising prices at the depots and the supply shortages were making cooking gas unaffordable.

“This sad situation has brought untold hardship to millions of Nigerian households, small businesses, food vendors and low-income families who depend on LPG for daily cooking and livelihood,” they said.

The association warned that with the rising cost of gas, many families were going back to firewood and charcoal.

Industry stakeholders said the outlook was uncertain in the short and medium term.

The National President of the Oil and Gas Service Providers Association of Nigeria, Colman Obasi, said it would take years to address infrastructure deficits, insecurity, foreign exchange volatility and regulatory challenges.

He warned that gas shortages could persist in the country, even with its huge reserves, unless there are significant investments in gas processing, storage and distribution infrastructure.

The price of cooking gas has gone up by about 335 per cent in the last 10 years, data from the National Bureau of Statistics shows.

The average price increased from ₦400 per kilogramme in 2016 to around ₦1,741 per kilogramme in 2026, reflecting the combined impact of supply constraints and broader economic pressures.