Nigerian business magnate Aliko Dangote has announced a bold plan to reduce the price of cooking gas (LPG) across the country. His refinery, located in Lekki, Lagos, has started producing large volumes of LPG, with a promise to make the product more affordable for everyday Nigerians.
However, the announcement has sparked strong reactions from LPG marketers and industry stakeholders, who warn that the move could sideline existing players and create a dangerous monopoly in the gas sector.
During a recent visit by members of the Lagos Business School’s CGEO Africa group, Dangote revealed that his facility currently produces around 2,000 tonnes of LPG daily, aiming to scale up to meet national demand.
“Nigeria is gradually transitioning to gas usage, but prices are still high. We are working to reduce the cost and make it more accessible,” Dangote said.
He added that if distributors resist lowering prices, his company will begin direct sales of LPG to consumers in a bid to encourage a shift away from firewood and kerosene.
Cooking Gas Prices in Nigeria May Drop Below ₦1,000/Kg
Currently, cooking gas prices range between ₦1,000 and ₦1,300 per kilogram. The Dangote Group aims to disrupt this pricing structure and push for nationwide affordability.
This price crash plan is part of a broader energy distribution strategy. Dangote disclosed that beginning in August 2025, his company will also start the direct distribution of petrol, diesel, and aviation fuel. A fleet of 4,000 CNG-powered buses has already been procured to support this logistics initiative.
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LPG Marketers Push Back: Fear of Market Monopoly
Despite the promise of lower prices, key players in Nigeria’s gas industry have voiced concerns.
Godwin Okoduwa, former Chairman of the LPG and Natural Gas Downstream Group at the Lagos Chamber of Commerce and Industry, said the plan feels like an attempt to dominate a thriving industry that has seen tremendous growth from 70,000 metric tonnes in 2007 to over 1.3 million in 2022.
“The industry was built through collaboration—not dominance,” he stressed. “Monopoly is not the path to sustainable growth.”
Okoduwa recommended that instead of competing directly with long-standing stakeholders, Dangote should focus on expanding LPG access to underserved regions, especially northern Nigeria, where LPG consumption remains very low.
“Unrealistic,” Says LPG Association Boss
Also reacting, Bassey Essien, Executive Secretary of the Nigerian Association of Liquefied Petroleum Gas Marketers, questioned the feasibility of direct sales to end users.
“Has the refinery started selling petrol to you and me at cheaper rates? If not, why should LPG be different?” he asked.
Essien warned that unless infrastructure, logistics, and consumer-level distribution are properly addressed, the promise to crash cooking gas prices might remain a public relations move rather than a practical solution.
Conclusion: Innovation vs. Inclusion in Nigeria’s LPG Market
Aliko Dangote’s entry into the LPG market with plans to reduce gas prices in Nigeria has created both optimism and alarm. On one hand, millions of Nigerians struggling with energy costs might benefit. On the other, longstanding gas dealers fear a market takeover that could disrupt fair competition and limit diverse investment.
As the refinery ramps up production, the central question remains: Will Dangote’s gas price crash empower the masses or marginalize industry players?
What This Means for You
Expect potential changes in cooking gas prices across Nigeria in the coming months.
Watch for possible shifts in petrol and diesel retail structure by August.
Stay updated with Rextun City Updates as we follow developments in the LPG and energy sector.
