President of the Dangote Group, Alhaji Aliko Dangote, has announced plans to drastically reduce the cost of liquefied petroleum gas (LPG), commonly known as cooking gas, by initiating direct sales to consumers. The move, aimed at curbing the high retail prices currently burdening Nigerian households, was disclosed during a recent tour of the Dangote Refinery in Lekki, Lagos, on Tuesday, July 16, 2025.
Speaking to journalists, Dangote expressed deep concern over the unaffordable market price of cooking gas, which currently ranges between ₦1,000 and ₦1,300 per kilogramme, despite Nigeria producing over 22,000 tonnes of LPG daily. He noted that many Nigerians, especially in rural and low-income communities, are reverting to firewood and charcoal due to the rising cost of gas, a trend that poses both economic and environmental threats.
According to Dangote, LPG marketers and distributors have refused to adjust prices to reflect local production realities, prompting his decision to bypass intermediaries. “If they are not ready to reduce the price, we will crash it ourselves by selling directly to end users,” he declared.
The plan has triggered mixed reactions from industry stakeholders. While many Nigerians welcomed the development as a long-overdue relief from soaring energy costs, some marketers have raised concerns over possible monopolistic practices. They warned that Dangote’s dominance could undermine existing market structures and threaten the survival of small-scale LPG businesses.
Energy analysts, however, argue that the move could stimulate price competition and efficiency in the sector. Adeola Yusuf, a Lagos-based energy policy expert, described the initiative as “a bold step toward forcing transparency and affordability in the domestic LPG market,” noting that a similar market correction followed Dangote’s earlier intervention in diesel and aviation fuel pricing.
The Federal Government has yet to issue an official position on the development, but regulatory watchers are closely monitoring the unfolding dynamics in the LPG sector, which remains a key component of Nigeria’s clean energy transition agenda.
If successfully implemented, Dangote’s direct-to-consumer model could significantly lower cooking gas prices nationwide, reduce reliance on dirty fuels, and enhance access to cleaner, safer cooking alternatives for millions of Nigerians.
