Real Reason Why Cooking Gas Will Remain Expensive And Scarce Across Nigeria
Despite holding Africa’s largest proven gas reserves and recording increased production, Nigeria is facing a growing shortage of Liquefied Petroleum Gas (LPG), popularly known as cooking gas.
The shortage has continued to push retail prices higher and place additional pressure on households and businesses across the country.
According to Vanguard, data obtained from the Nigerian Upstream Petroleum Regulatory Commission showed that 62 per cent of Nigeria’s gas output in the first two months of the year was exported, leaving only 38 per cent for domestic consumption.
Industry analysts warned that a supply structure designed when gas usage was relatively low can no longer support current demand.
According to an industry report titled Nigeria LPG Production & Supply Matrix (2023–2026), national cooking gas consumption rose by 20 per cent to 1.8 million metric tonnes in 2026 from 1.5 million metric tonnes in 2023.
However, estimated national supply stood at between 1.55 million and 1.65 million metric tonnes, creating a supply gap.
The report noted that domestic production has increased with contributions from facilities including the Dangote Refinery, Nigeria LNG and several gas processing plants.
As a result of the supply-demand imbalance, retail cooking gas prices have climbed sharply.
In many parts of the country, LPG now sells for between ₦1,700 and ₦2,000 per kilogramme, compared to an average of about ₦1,100 per kilogramme earlier in the year.
Industry operators warned that prices could continue rising if structural challenges remain unresolved.
Experts identified several factors responsible for the shortage, including inadequate gas infrastructure, export prioritisation, insecurity, pipeline vandalism, limited storage facilities and regulatory bottlenecks.
An industry stakeholder who spoke anonymously said Nigeria lacks sufficient pipelines, storage facilities and processing plants to efficiently move gas from production fields to consumers.
He also noted that producers often prefer export markets because they offer higher returns and more stable foreign exchange earnings.
The Nigerian Association of Liquefied Petroleum Gas Marketers said the situation had created severe hardship for households and businesses.
The National President of the association, Edu Inyang, and Executive Secretary, Bassey Essien, said rising depot prices and supply shortages were making cooking gas increasingly unaffordable.
“This sad situation has brought untold hardship to millions of Nigerian households, small businesses, food vendors and low-income families who rely on LPG for daily cooking and livelihood,” they said.
The association warned that many families were reverting to firewood and charcoal because of the rising cost of gas.
Industry stakeholders said the outlook remains uncertain in the short and medium term.
The National President of the Oil and Gas Service Providers Association of Nigeria, Colman Obasi, said infrastructure deficits, insecurity, foreign exchange volatility and regulatory challenges would take years to address.
He warned that the country could continue to experience gas shortages despite its vast reserves unless significant investments are made in gas processing, storage and distribution infrastructure.
Data from the National Bureau of Statistics showed that cooking gas prices have increased by about 335 per cent over the last decade.
The average price rose from ₦400 per kilogramme in 2016 to about ₦1,741 per kilogramme in 2026, reflecting the combined impact of supply constraints and broader economic pressures.
