The planned reduction of Liquefied Petroleum Gas (LPG) prices by Africa’s richest man, Alhaji Aliko Dangote, has sparked a heated debate among marketers in Nigeria’s cooking gas industry. The move, aimed at making LPG more affordable for millions of households, has been strongly resisted by major operators who allege that Dangote is attempting to monopolise the market.
Speaking during a tour of the Dangote Refinery in Lekki, Lagos, the industrialist revealed that the refinery currently produces 22,000 tonnes of LPG daily, with plans to increase production to boost domestic supply. Dangote, who described the current cooking gas price—ranging between N1,000 and N1,300 per kilogramme—as “unaffordable for ordinary Nigerians,” vowed to sell directly to consumers if existing distributors fail to cut prices.
“We’re trying to bring down the price and make it cheaper. If the distributors are not willing to reduce prices, we will sell directly to consumers so people can move away from firewood and kerosene to LPG for cooking,” Dangote said while addressing members of the Lagos Business School CGEO Africa group.
The billionaire’s direct-sales strategy is part of his broader energy sector disruption, following plans to distribute petrol, diesel, and aviation fuel directly to marketers from August, with 4,000 CNG-powered buses already procured for the operation.
However, LPG marketers have rejected the proposal, describing it as a veiled attempt to dominate the market. Former Chairman of the LPG and Natural Gas Downstream Group of the Lagos Chamber of Commerce and Industry, Godwin Okoduwa, criticised the strategy, insisting that market growth should be driven by collaboration, not competition.
“I think it’s monopolistic. The LPG industry grew from 70,000 metric tonnes in 2007 to over 1.3 million tonnes in 2022 through collaboration with the government, NLNG, and investors. One person cannot just come and frustrate existing players after they’ve invested resources over the years,” Okoduwa said.
He advised Dangote to expand the market rather than attempting to dominate it, suggesting that the businessman should develop gas infrastructure in low-consumption regions like the North-East.
Similarly, the Executive Secretary of the Nigerian Association of Liquefied Petroleum Gas Marketers, Bassey Essien, dismissed the feasibility of Dangote’s direct sales, drawing parallels with the current petrol distribution system. “Has his refinery been able to sell PMS directly to consumers at a cheap rate? It’s unrealistic to expect a different outcome for cooking gas,” Essien argued.
Industry analysts believe that while Dangote’s intervention could crash prices in the short term, it may also stifle private investment if market players feel threatened. Nigeria’s per capita LPG consumption remains at 5–6kg, far below South Africa, Morocco, and Tunisia, which have double-digit consumption rates. Experts warn that aggressive competition without collaboration could disrupt long-term growth and infrastructure development.
Nonetheless, Dangote insists that his goal is consumer welfare, stressing that cheaper LPG will encourage millions of Nigerians to abandon firewood and kerosene, reducing health risks and deforestation.
As the standoff continues, stakeholders are urging government regulators to step in to ensure a level playing field, protect existing investors, and guarantee that consumers ultimately benefit from lower cooking gas prices.