Liquefied Petroleum Gas (LPG) marketers in Nigeria have set an ambitious target to boost the nation’s annual gas supply to six million metric tonnes in the coming years as part of efforts to promote cleaner energy and reduce dependence on other fuel sources, Okay News reports.
Speaking at the 38th Annual General Meeting of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) in Abuja on Tuesday, the outgoing President of the association, Oladapo Olatunbosun, reviewed the sector’s growth and outlined new objectives aimed at deepening gas adoption nationwide.
Olatunbosun said the country’s LPG consumption had grown from about 900,000 metric tonnes four years ago to over two million metric tonnes in 2024. He attributed the growth to increased private investment, government collaboration, and rising public acceptance of gas as a domestic energy source.
“About four years ago, national consumption of LPG was between 900,000 metric tonnes and one million metric tonnes. Today, by the grace of God, it has risen to two million metric tonnes, and from the look of things, by the first quarter of next year, LPG consumption will hit three million metric tonnes per annum,” he stated.
He further revealed that with consistent policy backing and active participation from the private sector, the goal of achieving six million metric tonnes per annum was within reach.
“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. By the grace of God, we hope to increase supply to six million metric tonnes per annum, which I believe is 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.
Nigeria’s LPG industry has experienced steady growth since the introduction of the National Gas Expansion Programme and the Decade of Gas Initiative in 2021, both aimed at driving industrialisation and expanding cleaner energy usage. Despite Nigeria’s status as one of Africa’s largest gas producers, domestic LPG penetration remains low, especially in rural areas.
According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Nigeria currently consumes about 1.9 to 2 million metric tonnes of LPG annually — a figure still below its potential market size of 5 to 6 million tonnes.
Olatunbosun, however, noted that despite remarkable progress, the challenges of high cost and inconsistent supply still persist. He expressed confidence that the high cost of cooking gas would soon ease due to new investments and improved domestic production capacity.
“The expected entry of Seplat Energy’s gas into the market, combined with production from the Dangote Refinery and other ongoing investments in gas infrastructure, will help stabilise supply and reduce prices nationwide,” he said.
He also appealed to the incoming leadership of NALPGAM to prioritise affordability and improve gas accessibility in rural communities where adoption remains low.
“Affordability is critical. Every Nigerian household deserves access to LPG. We must keep pressing for mechanisms and investments that guarantee steady supply and price stability,” he urged.
Olatunbosun acknowledged recent supply disruptions caused by refinery logistics and maintenance challenges but expressed optimism that stability would soon return.
“Because of maintenance issues and temporary supply distortions, prices rose recently. But normalcy is returning, and as local production increases, prices will come down,” he assured.
He emphasised the need for operators to adopt new technologies to improve safety and reduce product theft. “We must confront leakage and theft by adopting artificial intelligence and digital monitoring tools. Innovation is the future of our business,” he added.
Reflecting on his four-year tenure, the outgoing president thanked association members for their unity and support, describing his term as one marked by transformation and resilience.
“It has been an honour to serve this great association. I am proud of what we achieved together. But this progress must continue under the next administration,” he said.
He encouraged the incoming executives to build on the gains recorded, pursue new investment opportunities, and maintain advocacy for a friendly business environment.
“Soldier go, soldier come, barrack remain,” he remarked. “We only have one association. The greatness of NALPGAM depends on our collective support and vision.”
The highlight of the event was the election of new executives who will lead the Nigerian Association of Liquefied Petroleum Gas Marketers for the next four years.
