President of the Dangote Group, Aliko Dangote, has announced plans to reduce the price of Liquefied Petroleum Gas (LPG), popularly known as cooking gas, with a warning that he may begin direct sales to consumers if current distributors resist efforts to cut costs.
Dangote, who spoke during a recent tour of the Dangote Refinery in Lekki, Lagos, by members of the Lagos Business School CGEO Africa and other foreign guests, said the current price of cooking gas is unaffordable for many Nigerians, especially those who still rely on firewood and kerosene for cooking.
“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. Nigeria is gradually moving to the usage of LPG. But I believe it is expensive. We’re trying to bring down the price and make it cheaper,” Dangote said.
He added, “If the distributors are not bringing the price down, we’ll sell directly to consumers, so people can transition from firewood or kerosene to LPG.”
The billionaire businessman also revealed plans to start direct distribution of petrol, diesel, and aviation fuel to marketers across the country by August. He noted that 4,000 CNG-powered buses had been procured to aid the distribution logistics.
Currently, cooking gas retails between ₦1,000 and ₦1,300 per kilogram in various parts of the country. Dangote’s refinery reportedly produces 22,000 tonnes of LPG daily, and the company aims to ramp up supply into the domestic market to improve access and affordability.
However, stakeholders in the LPG sector have strongly opposed Dangote’s move, accusing him of attempting to monopolize the industry.
In an interview, the former Chairman of the LPG and Natural Gas Downstream Group of the Lagos Chamber of Commerce and Industry, Godwin Okoduwa, criticised the plan as monopolistic and warned against undermining the efforts of existing players who have built the market over the years.
“I think it’s monopolistic. The LPG industry in Nigeria grew from 70,000 metric tonnes in 2007 to over 1.3 million tonnes in 2022 through collaboration — with the Federal Government, NLNG, and offtakers. He shouldn’t be allowed to frustrate existing players,” Okoduwa said.
He urged Dangote to pursue a collaborative approach rather than crowding out smaller investors. “The LPG per capita consumption in Nigeria is still under 6kg, compared to double digits in South Africa, Morocco, and Tunisia. We should be focused on growing the market together, not on domination,” he added.
While acknowledging Dangote’s investment and intentions, Okoduwa recommended that efforts be directed toward expanding access to LPG in under-served regions like the Northeast, where consumption remains low due to inadequate infrastructure.
In a similar vein, the Executive Secretary of the Nigerian Association of Liquefied Petroleum Gas Marketers, Bassey Essien, questioned the feasibility of Dangote’s direct-to-consumer model.
“I think it’s unrealistic. What is the situation with petrol? Has the refinery been able to sell directly to you and me at a cheap rate?” he queried.
Despite the resistance from operators, Dangote maintains that his overriding goal is to make clean cooking energy accessible and affordable for all Nigerians. Whether his intervention will trigger a price drop or industry shake-up remains to be seen.