By Udeme Akpan, Energy Editor
Local refineries and gas processing plants, led by the Dangote Petroleum Refinery and NLNG Limited, supplied 87% of Nigeria’s domestic Liquefied Petroleum Gas (LPG), also known as cooking gas, in 2025, significantly reducing the country’s dependence on imports.
Findings by Vanguard showed that the sharp rise in domestic supply marked a major shift from 2023, when imported cooking gas accounted for about 47% of total consumption.
The improvement has been driven largely by the coming on stream of the Dangote Petroleum Refinery, increased LPG output from NLNG, and contributions from other local plants.
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) indicated that a total of 52,900 metric tonnes of cooking gas was supplied to the domestic market in 2025. Of this volume, 45,800 metric tonnes, representing 87%, were sourced locally, while only 7,100 metric tonnes, or 13%, came from imports.
According to industry data, the growing dominance of local suppliers has led to a steady decline in LPG imports, easing pressure on foreign exchange demand and improving supply security in the domestic market.
Analysts also note that increased local production has helped stabilise availability, even as consumption continues to rise.
The National Bureau of Statistics (NBS) corroborated the trend, reporting sustained growth in domestic LPG output alongside falling import volumes over the period.
The agency attributed the development to expanded refining and gas processing capacity, as well as policy reforms aimed at encouraging local production.
Energy sector experts say the shift underscores the impact of recent investments in downstream infrastructure and positions Nigeria closer to self-sufficiency in cooking gas supply. They, however, stressed the need for improved distribution networks and storage facilities to ensure that increased local output translates into better pricing and wider access for households nationwide.
With additional capacity expected from existing and new facilities, stakeholders project that domestic suppliers could further increase their share of the LPG market in the coming years, potentially eliminating the need for imports and strengthening Nigeria’s energy security.
A breakdown indicated that the Dangote Petroleum Refinery, NLNG, and others supplied 3,200 metric tonnes, 3,800 metric tonnes, 3,400 metric tonnes, and 3,800 metric tonnes in January, February, March, and April 2025, respectively.
It showed that 3,800 metric tonnes, 4,000 metric tonnes, 4,500 metric tonnes, and 4,400 metric tonnes were supplied in May, June, July, and August 2025, while 3,700 metric tonnes, 4,200 metric tonnes, 3,300 metric tonnes, and 3,700 metric tonnes were supplied in September, October, November, and December 2025, respectively.
However, reacting in an interview with Vanguard, yesterday, Prof. Wumi Iledare, a Petroleum Economist, said: “The 2025 milestone where local refineries and gas processing plants supplied 87% of Nigeria’s domestic LPG (cooking gas) demand offers empirical validation of a long-standing petroleum economics proposition: value creation occurs at the point of processing, not merely at the point of extraction.
“The experience of LPG, led by the Dangote Petroleum Refinery, NLNG, and other domestic processors, provides a compelling case for why Nigeria is economically better served by processing petroleum domestically rather than exporting crude and importing refined products.
“The 2025 LPG supply outcome confirms that domestic petroleum processing is not an ideological preference but an economic imperative. It delivers superior outcomes in value retention, foreign exchange stability, employment, energy security, and industrial development compared to the legacy model of crude exports and refined product imports.
“Nigeria’s challenge going forward is not whether to deepen domestic processing, but how quickly and how coherently policy, regulation, and infrastructure can scale it across the full petroleum and gas value chain. The LPG story should therefore be treated not as an isolated success, but as a template for national energy-industrial strategy.”
Similarly, the National President of the Oil and Gas Services Providers Association of Nigeria (OGSPAN), Mazi Colman Obasi, said: “This is a very good development. It shows that Nigeria has made progress in sourcing cooking gas locally instead of using our scarce foreign exchange to import from the global market.
From all indications, it would create many multiplier effects in the domestic economy while enhancing the nation’s energy security.”
On his part, another analyst, who pleaded to be anonymous, said: “The nation has huge reserves of natural gas, part of which has been flared over the years to the detriment of the environment. I commend the Dangote Petroleum Refinery, NLNG Limited, and others; they should be commended as we look forward to possibly 100% sourcing of cooking gas from Nigeria.”
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