Nigeria is facing a growing Liquefied Petroleum Gas (LPG) shortage despite possessing Africa’s largest proven gas reserves and recording increased gas production. The shortage is placing severe pressure on households, businesses, and industries that rely on cooking gas, while also driving retail prices to record levels.
Industry data indicate that domestic demand for LPG has significantly exceeded available supply, creating persistent shortages across the country. Although Nigeria’s gas production has continued to rise, a substantial portion of output is being directed toward export markets, leaving domestic consumers struggling to secure adequate supplies.
According to figures obtained from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), approximately 62 percent of Nigeria’s total gas production during the first two months of 2026 was exported, while only 38 percent was allocated to the domestic market. Industry stakeholders argue that this export-oriented supply structure is no longer sustainable given the rapid growth in local consumption.
Demand Growth Outstrips Supply Expansion
The latest industry assessment, titled Nigeria LPG Production & Supply Matrix (2023–2026), revealed that national LPG consumption increased by approximately 20 percent, rising from 1.5 million metric tonnes in 2023 to an estimated 1.8 million metric tonnes in 2026. During the same period, national supply rose to between 1.55 million and 1.65 million metric tonnes, leaving a significant supply deficit.
The report noted that the Nigerian LPG market has undergone major structural changes in recent years. Historically dominated by imports and the Nigerian Liquefied Natural Gas (NLNG) company, the market now increasingly depends on domestic gas-processing facilities, including the Dangote Petroleum Refinery, inland gas processors, and Nigerian National Petroleum Company Limited (NNPCL)-linked facilities.
Despite these developments, supply growth has failed to keep pace with rising demand generated by population growth, urbanization, and government campaigns encouraging households to switch from traditional fuels such as firewood and kerosene to cleaner cooking alternatives.
Prices Surge Across the Country
The widening supply-demand gap has translated directly into higher prices for consumers. Retail LPG prices in many parts of Nigeria currently range between N1,700 and N2,000 per kilogram, representing an increase of more than 80 percent compared with the average price of N1,100 per kilogram recorded during the first quarter of 2026.
Industry dealers warn that further increases are likely in the coming months because many of the underlying challenges cannot be resolved quickly.
National Bureau of Statistics (NBS) data show that cooking gas prices have risen dramatically over the past decade. Average LPG prices increased from N400 per kilogram in 2016 to N1,741 per kilogram in 2026, representing a cumulative increase of approximately 335 percent. The upward trend has been largely driven by supply constraints, exchange-rate pressures, and rising operational costs throughout the value chain.
Structural Challenges Persist
Industry experts identify inadequate infrastructure as one of the most significant barriers to expanding domestic gas supply. Nigeria continues to face shortages of gas gathering systems, processing facilities, storage terminals, and transmission pipelines needed to efficiently move gas from production sites to end users.
Large volumes of gas produced in remote oil-producing regions remain stranded because of insufficient evacuation and distribution infrastructure. As a result, available supplies often fail to reach domestic consumers in a timely and cost-effective manner.
Stakeholders also point to the continued preference of producers to sell gas into export markets, where international prices and foreign exchange earnings are more attractive. This has reduced incentives to prioritize domestic supply, further tightening the local market.
Security challenges in the Niger Delta remain another major concern. Crude oil theft, pipeline vandalism, and attacks on energy infrastructure frequently disrupt production and transportation activities, forcing operators to suspend operations and reducing gas availability.
Additional obstacles include foreign exchange volatility, inadequate storage capacity, regulatory uncertainty, policy inconsistencies, and delays in critical gas-sector investments.
Gas Flaring and Investment Gaps
Experts also highlighted the continued flaring of associated gas, despite repeated government commitments to eliminate the practice. Significant volumes of gas that could otherwise be processed for domestic consumption continue to be wasted through flaring operations.
At the same time, investment in major gas infrastructure projects has been slower than anticipated. Industry operators cite regulatory bottlenecks, policy uncertainty, and foreign exchange challenges as factors discouraging long-term capital commitments.
The sector requires billions of dollars in investment to expand gas processing, storage, transportation, and distribution networks needed to meet growing domestic demand.
Households and Small Businesses Under Pressure
The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGMA) warned that the ongoing shortage is imposing severe hardship on millions of households and small businesses nationwide.
According to the association, marketers continue to face difficulties sourcing LPG because of supply shortages, elevated depot prices, logistics constraints, and rising operating expenses. The situation has made cooking gas increasingly unaffordable for many Nigerians.
The association expressed concern that the crisis is undermining years of progress made through government policies and private-sector investments aimed at promoting clean cooking energy. Many households, particularly low-income families, are reportedly returning to firewood and charcoal as cooking alternatives.
Industry stakeholders caution that this reversal could have serious implications for public health, environmental sustainability, and Nigeria’s broader climate commitments.
Outlook Remains Uncertain
Industry leaders believe the outlook for the LPG market remains challenging in both the short and medium term. They argue that many of the sector’s structural problems—including infrastructure deficits, inadequate investment, insecurity, storage limitations, and regulatory inconsistencies—require substantial financial resources and years of sustained implementation to resolve.
Nevertheless, experts emphasize that Nigeria possesses sufficient gas reserves and production potential to achieve near self-sufficiency in LPG supply. The growing contributions of NLNG, Dangote Refinery, Kwale Hydrocarbon, NPDC Ologbo, Pan Ocean, Seplat, PNG Gas, Greenville, and other domestic processors have significantly increased national output.
Analysts maintain that achieving long-term stability will require accelerated investment in gas-processing facilities, expanded storage infrastructure, stronger incentives for domestic supply, and consistent implementation of government policies supporting LPG adoption.
Without decisive action, they warn, Nigeria may continue to experience persistent cooking gas shortages and rising prices despite its vast natural gas wealth and expanding production capacity.
