NALPGAM sets operational excellence standard, demands 24-hour reporting of LPG incidents
Association urges strict safety compliance, digital tracking and proper propane documentation as Nigeria targets 5 million tonnes of LPG consumption by 2030
The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has called for stricter safety compliance, improved facility maintenance, digital monitoring and stronger regulatory accountability across Nigeria’s downstream liquefied petroleum gas (LPG) industry.
The association also urged operators to report incidents to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) within 24 hours, eliminate unauthorised propane blending and ensure that propane transportation is supported by valid documentation.
The resolutions were contained in a communiqué issued at the NALPGAM 2026 webinar, themed “Downstream LPG Operational Excellence and Compliance,” held virtually on Thursday, October 15.
The webinar was organised by NALPGAM in partnership with The Legend and Legacy Company Ltd and brought together industry operators, marketers, safety professionals, regulators and policymakers to examine operational, regulatory and commercial challenges confronting the downstream LPG sector.
The communiqué emphasised that Nigeria’s ambition to expand LPG adoption under the Federal Government’s Decade of Gas programme must be matched by improved supply capacity, stronger distribution infrastructure, operational efficiency and strict adherence to safety standards.
It described regulatory compliance as a business enabler rather than an administrative burden, noting that preventive maintenance, competent personnel, documented procedures and effective risk management could reduce accidents, minimise losses, improve profitability and strengthen public and investor confidence.
NALPGAM identifies major safety risks
The association identified gas leaks, loss of containment, overfilling, propane-vapour ignition, fires and explosions as major risks requiring sustained attention from LPG operators.
It urged facility owners and operators to maintain functional gas-detection and emergency-shutdown systems, conduct technical safety studies, undertake regular compliance self-assessments and fulfil applicable licensing requirements throughout the operational life cycle of their facilities.
The communiqué further called for stronger controls covering cylinder handling, filling, storage and transportation, as well as improved leak detection, fire protection and emergency-response arrangements.
Operators were also encouraged to establish a workplace culture in which employees could report unsafe conditions and incidents without hesitation.
According to the association, safety management must extend beyond regulatory inspections to become an integral part of everyday business operations.
It urged management teams to assign clear responsibility for safety, equipment integrity, workforce competence, maintenance and corrective actions.
Propane blending, haulage under scrutiny
NALPGAM called for the elimination of unauthorised propane blending and stricter compliance with documentation requirements for propane pooling and transportation.
It said waybills must be properly maintained and updated whenever an approved destination changes, warning that trips lacking the required documentation should not proceed.
The association said stronger supply-chain controls and traceability would help prevent unauthorised activities, improve accountability and support compliance across the LPG distribution network.
It also recommended adopting digital technologies, including the Internet of Things (IoT) and blockchain, to improve inventory management, cylinder tracking, transportation monitoring, transaction traceability and regulatory reporting.
However, the communiqué stressed that technology investments should be guided by practical operational needs and measurable improvements in safety, transparency and efficiency.
Nigeria targets 5 million tonnes of LPG consumption
The communiqué said Nigeria was targeting an increase in annual LPG consumption from approximately 1.6 million tonnes to five million tonnes by 2030, a goal that would require substantial investment in production, storage, distribution and retail infrastructure.
It noted that expanding access would depend not only on product availability but also on the capacity of marketers, cylinder suppliers and refill operators to meet rising demand safely and reliably.
The association encouraged its members to participate in the government’s LPG penetration programme, which the communiqué said promotes affordability through cylinder distribution, tracking devices and up to six subsidised refills per beneficiary.
The programme also envisages designated refill points, including facilities serving rural communities.
NALPGAM urged members to prepare for the anticipated expansion by improving infrastructure, maintaining compliant facilities and ensuring that personnel were adequately trained.
The association said increased LPG adoption must be accompanied by effective consumer protection and reliable last-mile distribution, particularly as efforts continue to extend access to underserved communities.
Market volatility raises commercial concerns
The webinar also examined the commercial pressures facing LPG operators, particularly fluctuations in international prices, foreign exchange rates, supply availability, logistics expenses and other operating costs.
NALPGAM said these factors influenced LPG pricing and could undermine business sustainability where operators lacked effective procurement, inventory and cost-management strategies.
It urged marketers to strengthen procurement planning, develop sound pricing strategies and communicate transparently with consumers.
The communiqué also called for constructive engagement among government, regulators and industry stakeholders to promote a stable, fair and predictable operating environment.
According to the association, commercial resilience would require operators to combine efficient business management with responsible pricing practices and reliable supply-chain arrangements.
Association proposes operational excellence framework
As part of the webinar’s resolutions, NALPGAM endorsed the aspiration to develop a common industry framework known as the “NALPGAM Standard of Operational Excellence.”
The proposed framework rests on four principles: every LPG facility must be safe and properly maintained; every operator must be competent and adequately trained; every process must comply with applicable requirements; and every customer must be protected.
To advance the initiative, the association urged operators to integrate preventive maintenance, safety management and regulatory compliance into their daily activities.
It also recommended regular reviews of licences, approvals, equipment integrity, inspection records, defects, emergency systems and operational documentation.
Operators were further encouraged to meet applicable licensing and milestone-approval requirements from facility establishment through operation to decommissioning.
The association said management teams should develop clear digitalisation plans, strengthen staff training and incident reporting, improve logistics and cost management, and assess opportunities arising from the country’s projected LPG market expansion through 2030.
Calls for stronger collaboration with regulators
The communiqué stressed the importance of sustained engagement between government, regulators and industry operators in addressing the practical challenges of implementing safety and compliance requirements.
It said collaboration would be essential to improving infrastructure, strengthening enforcement, promoting responsible business practices and supporting sustainable market expansion.
NALPGAM maintained that regulatory compliance and commercial growth should be pursued together, adding that operators must demonstrate responsibility even as the association advocates policies that protect legitimate businesses and support wider LPG access.
The webinar reaffirmed that Nigeria’s downstream LPG industry would depend on safe operations, commercial efficiency, digital capability and responsible expansion to realise its growth potential.
It called on operators to make safety part of their organisational culture, treat compliance as a measurable business priority and adopt operational excellence as a basis for improving industry performance.
The communiqué noted that proceedings were continuing, with further details on digitalisation, pricing, technical sessions, interactive discussions and closing remarks to be incorporated into subsequent updates.
