Domestic gas boom slashes Nigeria’s LPG import dependence — industry leaders hail turning point
Nigeria is witnessing a quiet but transformative shift in its energy landscape, as rising domestic production of cooking gas steadily displaces imports—signaling a major milestone in the nation’s march toward energy security and cleaner fuel adoption.
At the center of this transition is Barrister Edu Inyang, President of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), who has credited a new wave of local production capacity for reshaping the liquefied petroleum gas (LPG) market.
Inyang described indigenous producers as “game changers,” pointing to the growing influence of key players such as Nigeria LNG Limited, Dangote Refinery, Seplat Energy, Kwale Hydrocarbon, and NPDC Ologbo.
Their combined output has driven a dramatic surge in local supply—from 59 percent of total LPG supply in January 2026 to an impressive 85 percent in February—while imports continue to decline sharply.
Between January and February 2026, domestic sources accounted for an average of 71.9 percent of LPG supply, compared to 28.1 percent from imports, marking a decisive shift in Nigeria’s energy dynamics.
“This is more than a trend—it is a structural transformation,” Inyang noted. “Local production is not only replacing imports but also strengthening Nigeria’s energy independence.”
The surge in domestic LPG supply is underpinned by a convergence of strategic investments, policy support, and rising consumer demand.
Expanded refining and gas processing capacity—particularly from the Dangote Refinery and Nigeria LNG Limited—has significantly boosted output.
Meanwhile, government interventions such as zero import duties on LPG equipment and incentives under the National Gas Expansion Programme (NGEP) have created a favorable environment for local producers.
Equally critical is a shift in consumer behavior. Growing awareness of LPG as a cleaner alternative to traditional fuels like firewood—long associated with health and environmental risks—is accelerating adoption across urban and rural households alike.
Infrastructure expansion has further supported this growth, with investments in refilling plants, bulk storage facilities, and nationwide distribution networks improving access and reliability.
Eye on 2030: A Five Million Metric Tonne Target
Nigeria’s LPG momentum aligns with its broader Energy Transition Plan, which targets annual consumption of five million metric tonnes by 2030.
Inyang expressed confidence that the current trajectory is sustainable, but cautioned that continued progress hinges on deeper collaboration between government and industry stakeholders.
Key priorities include scaling up storage and transportation infrastructure, ensuring affordability through structured pricing frameworks, and maintaining consistent, investor-friendly policies.
“Growth must be inclusive,” he said. “Expanding access while keeping LPG affordable for households is essential to sustaining demand.”
Beyond Cooking: Expanding LPG’s Role
Looking ahead, industry stakeholders are pushing to broaden LPG’s applications beyond household cooking. Inyang highlighted opportunities in transportation—particularly through Autogas—as well as in industrial usage.
He pointed to flagship initiatives such as the Decade of Gas Initiative and the NGEP as critical drivers of this transition, positioning natural gas as a cornerstone of Nigeria’s economic development strategy.
Confidence in the sector is further reinforced by a wave of ongoing and planned infrastructure projects.
These include six new gas processing plants, two facilities to harness flared gas, and multiple compressed natural gas (CNG) refueling stations aimed at easing transportation constraints.
The Victoria Island–Lekki gas pipeline project is also expected to enhance supply to key industrial and residential corridors, boosting energy access in one of Nigeria’s fastest-growing regions.
In addition, the recently unveiled Gas Master Plan 2026 by Nigerian National Petroleum Company Limited targets an ambitious increase in national gas production—from current levels to 10 billion cubic feet per day by 2027, and 12 billion by 2030.
Dangote Expansion Seen as Game Changer
Industry optimism is particularly high around the expanding capacity of the Dangote Refinery.
Plans to scale operations from 650,000 to 1.4 million barrels per day—alongside a second processing train—are expected to significantly boost LPG output.
Market watchers believe this could further stabilize prices, deepen domestic utilization, and accelerate Nigeria’s transition toward a more self-sufficient energy economy.
For Inyang and other industry leaders, Nigeria’s growing dominance in domestic LPG supply represents more than just improved statistics—it signals a defining moment in the country’s energy journey.
If sustained, this momentum could not only reduce reliance on imports but also lower energy costs, improve public health, and unlock new economic opportunities across the gas value chain.
