JUST IN: Tensions Rise As Dangote Moves To Slash Cooking Gas Prices
A brewing controversy has emerged in Nigeria’s Liquefied Petroleum Gas (LPG) market as Africa’s richest man, Alhaji Aliko Dangote, unveiled plans to crash the price of cooking gas and initiate direct sales to consumers, a move that has drawn criticism from industry operators who fear a looming monopoly.
Speaking during a recent tour of the Dangote Refinery in Lekki, Lagos, the President of Dangote Group disclosed that his facility now produces approximately 2,000 tonnes of LPG daily and aims to increase distribution into the Nigerian market. He emphasised that the current price of cooking gas, which ranges between ₦1,000 and ₦1,300 per kilogramme, is unaffordable for ordinary Nigerians, many of whom still rely on firewood and kerosene for cooking.
“We’re trying to bring down the price and make it cheaper,” Dangote told members of Lagos Business School’s CGEO Africa delegation. “If the distributors are not trying to bring it down, we’ll go directly and sell to the consumers.”
The billionaire industrialist warned that should distributors resist the price reduction strategy, his company would bypass them altogether, triggering fears among existing players of potential market dominance.
However, the announcement has met resistance from stakeholders in the LPG sector who allege that Dangote’s plan could distort competition and jeopardise years of collaborative industry growth.
Godwin Okoduwa, former Chairman of the LPG and Natural Gas Downstream Group at the Lagos Chamber of Commerce and Industry, criticised the move as “monopolistic,” urging Dangote to recognise the efforts of earlier investors who scaled the LPG market from 70,000 metric tonnes in 2007 to over 1.3 million metric tonnes by 2022.
“This growth was achieved through collaboration — with government, NLNG, and various offtakers. Dangote shouldn’t ignore the foundation that made the market viable,” Okoduwa said.
“We shouldn’t allow a zero-sum strategy. He should respect the ecosystem and focus on collaboration rather than disruption.”
He added that per capita LPG consumption in Nigeria remains low, averaging just 5–6kg, compared to double-digit consumption in countries like Morocco, Tunisia, and South Africa. According to him, rather than dominating the market, Dangote should invest in developing infrastructure in under-served regions such as the North-East, where LPG usage remains minimal.
Further casting doubt on the feasibility of Dangote’s proposal, the Executive Secretary of the Nigerian Association of Liquefied Petroleum Gas Marketers, Bassey Essien, questioned whether the refinery could realistically sell directly to consumers at a significantly cheaper rate.
“It’s unrealistic. Has the refinery been able to sell petrol directly to consumers at lower rates? The same logic applies here,” Essien remarked.
He argued that while efforts to lower gas prices are commendable, achieving this without disrupting the existing supply chain or marginalising key stakeholders would require strategic partnership — not parallel operations.
Dangote’s Broader Distribution Ambitions
The debate comes as Dangote Group prepares to roll out a national fuel distribution strategy beginning in August. The plan includes the deployment of 4,000 CNG-powered buses and the direct sale of refined petroleum products, including petrol, diesel, and aviation fuel, another bold attempt at redefining Nigeria’s downstream oil and gas market.
While consumers may benefit from lower prices in the short term, industry experts stress that long-term sustainability depends on inclusive policies that balance affordability with fair competition and investment protection.
