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Gas marketers set 6 million-tonne LPG supply target, forecast price reduction

Nigeria’s Liquefied Petroleum Gas (LPG) marketers have announced plans to raise the nation’s annual LPG supply to six million metric tonnes in the coming years, a move expected to enhance access to clean energy and ease the rising cost of cooking gas.

The outgoing President of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), Oladapo Olatunbosun, disclosed this on Tuesday at the association’s 38th Annual General Meeting (AGM) in Abuja. He reviewed the progress made under his tenure and outlined strategies to sustain industry growth.

The president noted that Nigeria’s LPG consumption had expanded remarkably from about 900,000 metric tonnes four years ago to more than two million metric tonnes in 2024, attributing the increase to improved investment, effective collaboration with government agencies, and growing public confidence in gas as a cleaner domestic energy option.

“Through our collaboration with the Federal Government under the Decade of Gas initiative, we have been able to deepen the future of LPG in Nigeria,” he said.

He added that with continued policy support and private-sector investment, the target of six million metric tonnes annually was achievable.

“By that, we will be able to rub shoulders with other countries like Morocco and Egypt, which currently lead LPG supply in Africa,” Olatunbosun said.

According to reports, Nigeria’s LPG industry has witnessed steady growth since the launch of the National Gas Expansion Programme and the Decade of Gas Initiative in 2021, aimed at driving industrialisation and cleaner energy adoption.

With a population exceeding 200 million and abundant natural gas reserves of over 200 trillion cubic feet, Nigeria is among Africa’s largest gas producers but still struggles with low domestic LPG penetration, particularly in rural areas.

According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Nigeria consumes about 1.9 to two million metric tonnes of LPG annually, far below its potential market size of five to six million tonnes.

Despite the progress, Olatunbosun noted that the rising cost of LPG and uneven supply remained key concerns, expressing optimism that the lingering complaints over the high cost of cooking gas would soon be a thing of the past, citing ongoing efforts to boost domestic supply.

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He added that the anticipated entry of Seplat Energy’s gas into the market, along with increased output from the Dangote Refinery and other ongoing gas infrastructure projects, would help ease supply pressures and stabilise prices across the country.

Reflecting on his four-year tenure, Olatunbosun expressed appreciation to members of NALPGAM for their cooperation and unity, describing his leadership as a period marked by growth, transformation, and resilience.

He urged the incoming executives to place greater emphasis on affordability and rural access, stressing that many communities were yet to benefit from Nigeria’s gas expansion efforts.

Olatunbosun lamented that while urban residents grappled with high prices, rural dwellers still faced limited access due to poor infrastructure and weak distribution networks.

He acknowledged that recent supply disruptions caused by plant maintenance and refinery logistics temporarily pushed prices higher but noted that the situation was improving as local production ramps up.

The outgoing president also stressed that Nigeria’s growing population and industrial expansion would continue to fuel gas demand, underscoring the need for sustained investments in processing capacity and infrastructure to reduce dependence on imports.

Calling for greater innovation in the industry, Olatunbosun urged operators to embrace artificial intelligence and digital monitoring systems to enhance plant safety, curb theft, and improve operational efficiency.

He also encouraged young Nigerians to explore and develop technology-driven solutions to strengthen LPG logistics, handling, and safety standards across the value chain.

Concluding his address, Olatunbosun expressed pride in the association’s accomplishments under his leadership and called on members to sustain the momentum.

Nanji is an investigative journalist with the ICIR. She has years of experience in reporting and broadcasting human angle stories, gender inequalities, minority stories, and human rights issues. She has documented sexual war crimes in armed conflict, sex for grades in Nigerian Universities, harmful traditional practices and human trafficking.

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