Aliko Dangote has announced plans to lower the cost of cooking gas in Nigeria, pledging to sell directly to consumers if current distributors don’t reduce prices. He says this move is aimed at making Liquefied Petroleum Gas (LPG) more affordable and accessible, especially for households still relying on firewood and kerosene.
Speaking at his Lekki refinery during a visit by local and international guests, Dangote said the refinery currently produces 2,000 tonnes of LPG daily and is increasing output to 22,000 tonnes to meet domestic demand.
However, this announcement has stirred unease among gas marketers and industry operators. Many fear the move could lead to a monopoly, pushing out long-standing players who have contributed to the growth of Nigeria’s LPG market—from just 70,000 tonnes in 2007 to over 1 million tonnes by 2022.
Industry veteran Godwin Okoduwa warned that the sector has thrived through partnerships, and growth can’t be sustained by allowing one player to dominate. He urged Dangote to focus on underserved areas like the Northeast, where LPG use is still very low, rather than destabilizing the existing market.
Similarly, Bassey Essien, head of the Nigerian LPG Marketers Association, expressed doubts over the feasibility of direct-to-consumer sales at lower prices. He questioned whether Dangote’s refinery could realistically break through existing distribution structures the way he suggests.
Currently, LPG costs between ₦1,000 and ₦1,300 per kilogram. While Dangote’s plan could lead to lower prices, some players worry it might come at the expense of fair competition and years of industry development.







