Despite possessing Africa’s largest proven natural gas reserves and recording higher production levels, Nigeria is facing an escalating shortage of Liquefied Petroleum Gas (LPG), commonly known as cooking gas. The supply crunch has continued to drive up retail prices, placing additional financial strain on households and businesses that depend on LPG for daily activities.

According to data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), approximately 62 per cent of the country’s gas production during the first two months of the year was exported, while only 38 per cent was retained for domestic use. Industry experts have argued that the current supply framework, which was established when domestic gas consumption was significantly lower, is no longer capable of meeting present-day demand.

Findings contained in the Nigeria LPG Production & Supply Matrix (2023–2026) report revealed that national cooking gas consumption increased by 20 per cent, rising from 1.5 million metric tonnes in 2023 to 1.8 million metric tonnes in 2026. However, estimated supply during the same period ranged between 1.55 million and 1.65 million metric tonnes, resulting in a noticeable supply deficit.

The report noted that local production has improved, supported by contributions from facilities such as the Dangote Refinery, Nigeria LNG, and several gas processing plants across the country. Nevertheless, these gains have not been sufficient to match growing demand. The imbalance between supply and consumption has contributed to a sharp increase in cooking gas prices nationwide. In many regions, LPG currently sells for between ₦1,700 and ₦2,000 per kilogramme, compared to an average of around ₦1,100 per kilogramme earlier in the year.

Industry operators have cautioned that prices may continue to rise unless long-standing structural issues affecting the sector are addressed. Experts attribute the shortage to several factors, including inadequate infrastructure, a strong focus on export markets, pipeline vandalism, insecurity, insufficient storage facilities, and regulatory bottlenecks. An industry stakeholder, who requested anonymity, stated that Nigeria lacks the pipelines, storage capacity, and processing facilities needed to efficiently transport gas from production sites to end users.

The source also explained that producers are often drawn to international markets, where returns are higher and foreign exchange earnings are more predictable. The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) described the situation as a major challenge for households and businesses. NALPGAM President, Edu Inyang, and Executive Secretary, Bassey Essien, said increasing depot prices and persistent supply shortages have made cooking gas increasingly unaffordable for many Nigerians.

According to the association, the rising cost of LPG has imposed significant hardship on households, food vendors, small businesses, and low-income earners who rely on the product for cooking and income-generating activities. The association further warned that many families are returning to the use of firewood and charcoal as alternatives due to the high cost of cooking gas. Industry stakeholders maintain that the short- and medium-term outlook remains uncertain.

The National President of the Oil and Gas Service Providers Association of Nigeria (OGSPAN), Colman Obasi, said challenges such as infrastructure deficits, insecurity, foreign exchange instability, and regulatory constraints cannot be resolved overnight.

He warned that Nigeria could continue to experience periodic gas shortages despite its abundant reserves unless substantial investments are made in gas processing, storage, and distribution infrastructure. Meanwhile, data from the National Bureau of Statistics (NBS) indicates that cooking gas prices have risen by approximately 335 per cent over the past decade.

The average retail price increased from about ₦400 per kilogramme in 2016 to roughly ₦1,741 per kilogramme in 2026, highlighting the combined effects of supply limitations and broader economic pressures on consumers.