Despite holding Africa’s largest proven gas reserves and recording increased gas production, Nigeria is facing persistent shortages of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, with consumers also grappling with rising prices.
Industry findings indicate that a significant portion of locally produced gas is being exported rather than supplied to the domestic market, worsening shortages and putting pressure on retail prices.
Data from the Nigerian Upstream Petroleum Regulatory Commission showed that 62 per cent of the country’s total gas output in the first two months of the year was exported, while only 38 per cent was retained for local consumption.
Industry analysts warned that the supply pattern, which existed when LPG usage was relatively low, is no longer sustainable as demand for cooking gas continues to grow across the country.
According to the report, national consumption of cooking gas rose by 20 per cent from 1.5 million metric tonnes in 2023 to 1.8 million metric tonnes in 2026.
However, domestic supply is estimated at between 1.55 million and 1.65 million metric tonnes in 2026, creating a supply gap that continues to drive scarcity and higher prices.
The shortage comes despite increased production linked to the entry of the Dangote Petroleum Refinery into the LPG supply market.
The report noted that Nigeria’s LPG market has undergone a major transformation between 2023 and 2026, shifting from dependence on imports and Nigeria LNG Limited to increased supply from domestic gas-processing plants, refineries, inland gas processors and facilities linked to the Nigerian National Petroleum Company Limited.
Analysts maintain that unless more gas is reserved for domestic use, shortages and high prices may persist despite Nigeria’s vast gas resources and rising production levels.