Nigeria Faces Cooking Gas Shortage Amid Surging Prices and Export Trends
- Nigeria is experiencing shortages of cooking gas reserves because a large share of its gas production is exported rather than supplied locally
- Demand for LPG has risen to about 1.8 million metric tonnes in 2026, exceeding domestic supply and creating a supply gap in the market
- The shortage has contributed to a sharp increase in cooking gas prices, which have risen from N400 per kilogramme in 2016 to N2,000 per kilogramme in 2026
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
Nigeria's abundant natural gas resources have failed to shield households and businesses from growing shortages of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, as supply challenges continue to push prices higher.
Despite possessing Africa’s largest proven gas reserves and recording increased gas production, consumers across the country are grappling with the limited availability of cooking gas.
Source: Getty Images
Investigations indicate that a significant portion of locally produced gas is being exported, leaving the domestic market underserved.
Figures obtained from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reveal that 62% of the country's gas output during the first two months of 2026 was exported, while only 38% was allocated to local consumption.
Industry experts argue that this export-driven supply pattern, which existed when cooking gas usage was relatively low in Nigeria, is no longer sustainable. They warn that the imbalance is worsening shortages and disrupting the domestic LPG market.
Demand outpaces supply as consumption rises
According to the latest Nigeria LPG Production & Supply Matrix (2023–2026) report, national demand for cooking gas has continued to grow faster than supply.
The report estimates that LPG consumption rose by 20 per cent, reaching 1.8 million metric tonnes in 2026 compared to 1.5 million metric tonnes in 2023. In contrast, national supply is projected to range between 1.55 million and 1.65 million metric tonnes this year, leaving a significant supply gap.
The shortage persists despite increased production capacity following the Dangote Refinery's entry into the domestic LPG market.
Industry stakeholders noted that while major producers and processors, including NLNG, Dangote Refinery, Kwale Hydrocarbon, NPDC Ologbo, Pan Ocean, Seplat, PNG Gas and Greenville, have boosted output, more investment is needed to meet growing demand.
They stressed that Nigeria has the potential to achieve near self-sufficiency in cooking gas supply but must expand gas-processing facilities, increase storage capacity, improve distribution infrastructure and maintain policies that encourage LPG adoption.
Prices soar as supply constraints persist
Analysts cautioned that unless the country accelerates investments in gas infrastructure and strengthens incentives for domestic supply, millions of Nigerians could continue to face cooking gas shortages despite the nation's vast energy resources.
Data from the National Bureau of Statistics (NBS) shows that the average price of cooking gas surged by 335% over the last decade, climbing from N400 per kilogramme in 2016 to N2,000 per kilogramme in 2026.
Source: Facebook
The price rose steadily over the years, increasing to N500 per kilogramme in 2017, N600 in 2018, N680 in 2019, N800 in 2020, N950 in 2021, N900 in 2022, N1,000 in 2023, N1,450 in 2024, N1,630 in 2025, and N2,000 in 2026.
Market observers attribute the sharp increase to persistent supply shortages, infrastructure limitations and other market pressures affecting the domestic LPG sector.
Techno Oil launches LPG cylinder manufacturing in Nigeria
Meanwhile, Legit.ng earlier reported that Techno Oil began LPG cylinder manufacturing, aiming for the safest gas cylinders in Nigeria with rigorous safety standards.
The firm's investment in LPG infrastructure aimed to address public health and energy access challenges in Nigeria.
With 5 million cylinders yearly, Techno Oil would support local manufacturing and job creation in the region.
Source: Legit.ng
