16 July 2026
Dangote Group’s President, Aliko Dangote, plans to slash cooking gas prices in Nigeria by leveraging his refinery’s daily production of 22,000 tonnes of LPG.
He warned that if distributors don’t cooperate in reducing prices, his company will bypass them and sell directly to consumers.
Speaking during a recent tour of his refinery by some local and foreign guests, Dangote stressed that the current price of cooking gas is expensive and not affordable for the common people who depend on firewood for cooking.
He disclosed that the refinery now produces 22,000 tonnes of LPG daily and it is ramping up production for distribution into the Nigerian market, especially as Nigerians move towards the use of gas for cooking.
Speaking to members of the Lagos Business School CGEO Africa, at the refinery in Lekki, Dangote said, “
The one that we didn’t write, which you must have seen, is LPG. Currently, we do LPG of about 2,000 tonnes per day. You know Nigeria is gradually moving to the usage of LPG. But I believe it is expensive, but right now we’re trying to bring down the price and make it cheaper.”
Dangote warned that “if the distributors are not trying to bring it down, we’ll go directly and sell to the consumers, so that people will now transit from firewood or kerosene to LPG for cooking.
Currently, cooking gas retails between ₦1,000 and ₦1,300 per kilogramme.
*Marketers’ Concerns:*
– *Monopoly Fears*: Existing operators view Dangote’s plan as monopolistic, potentially destabilizing the LPG ecosystem built over the years.
– *Collaboration Over Competition*: They argue that the industry’s growth from 70,000 metric tonnes in 2007 to over 1.3 million tonnes in 2022 was due to collaboration with the Federal Government, NLNG, and private sector players.
*Potential Impact:*
– *Increased Affordability*: Dangote’s plan aims to make cooking gas more affordable, encouraging Nigerians to transition from firewood and kerosene.
– *Market Dynamics*: The success of Dangote’s plan hinges on navigating distribution complexities and finding common ground with established market players
*Expert Opinions:*
Report days the former Chairman of the LPG and Natural Gas Downstream Group of the Lagos Chamber of Commerce and Industry, Godwin Okoduwa, described the plan as monopolistic.
Okoduwa expressed concern that the billionaire businessman should recognise the fact that some investors grew the market from 70,000 metric tonnes in 2007 to over 1 million metric tonnes in 2022, saying collaboration is the way to go.
“I think it’s monopolistic. I think a market should be protected to encourage growth. The LPG industry in Nigeria grew from 70,000 metric tonnes in 2007 to over 1.3 million tonnes in 2022. That was done by collaboration — collaboration with the Federal Government, the NLNG, and offtakers. Everything was done in collaboration. It grew from 70,000 to 250 to 800, and now over a million,” Okoduwa said.
Advises Dangote to focus on developing LPG infrastructure in underserved regions like the Northeast
Similarly, the Executive Secretary/Chief Executive Officer, Nigerian Association of Liquefied Petroleum Gas Marketers, Bassey Essien Questions the feasibility of Dangote’s direct sales model, citing challenges similar to petrol distribution. punch
