Dangote’s Plan to Slash Cooking Gas Prices Faces Backlash from LPG Marketers
Story written in (July 16, 2025) | By Myra:
A storm is brewing in Nigeria’s Liquefied Petroleum Gas (LPG) sector as key industry players protest Aliko Dangote’s move to reduce the price of cooking gas, currently ranging between N1,000 and N1,300 per kilogram. The billionaire industrialist recently announced plans to crash the cost of LPG, aiming to make it more affordable for millions of Nigerians and reduce dependence on firewood.
However, his proposal has triggered resistance from LPG marketers, who fear it could destabilize the market and threaten the investments of long-standing operators.
Godwin Okoduwa, former Chairman of the LPG and Natural Gas Downstream Group of the Lagos Chamber of Commerce and Industry, described Dangote’s intervention as “monopolistic” and warned that such a disruption could harm industry growth.
“I think it’s monopolistic,” Okoduwa said in an interview. “This market grew from just 70,000 metric tonnes in 2007 to over 1.3 million tonnes in 2022 through years of collaboration—with the Federal Government, NLNG, and private investors. Growth doesn’t come through monopoly but through partnerships.”
He emphasized that Nigeria’s current per capita LPG consumption is just under 5kg to 6kg, lagging far behind countries like South Africa, Morocco, and Tunisia, which post double-digit figures.
According to him, sustainable growth in the LPG sector should focus on building a larger and more inclusive market, not undermining existing players. “There are people who have invested heavily in this market—building infrastructure, creating distribution networks. Dangote didn’t walk into an empty market; he’s stepping into a system already built over the years,” he said.
Okoduwa advised that instead of triggering competition that could force smaller players out, Dangote should focus on collaboration. “The Nigerian LPG market can grow from 1.3 million tonnes to 5 million tonnes annually. Everyone can win if the strategy is expansion, not domination.”
Reacting to Dangote’s claim that his mission is to lower prices and expand access, especially in regions that rely on firewood, Okoduwa said: “Let him start with the Northeast, where LPG consumption is the lowest. If he builds infrastructure there, we’ll say thank you.”
Also speaking on the development, Bassey Essien, Executive Secretary and CEO of the Nigerian Association of Liquefied Petroleum Gas Marketers, expressed skepticism over Dangote’s ability to deliver cheaper gas directly to consumers.
“It’s unrealistic,” Essien said. “Look at PMS—has the Dangote refinery been able to sell petrol directly to consumers at significantly lower prices? The reality of market dynamics doesn’t support that expectation.”
As the debate intensifies, the LPG industry is urging caution and strategic dialogue. Stakeholders agree that while affordability is important, it must not come at the cost of market stability or the exclusion of long-time investors who built the sector from the ground up.
