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Local refineries supplied 87% of Nigeria’s cooking gas in 2025

In 2025, 87% of Nigeria's domestic Liquefied Petroleum Gas, or cooking gas, came from local refineries and gas processing facilities, led by the Dangote Petroleum Refinery and NLNG Limited. This greatly decreased the nation's reliance on imports.

According to Vanguard, the dramatic increase in domestic supply was a significant change from 2023, when approximately 47% of all cooking gas usage came from imports.

The Dangote Petroleum Refinery's coming on line, NLNG's enhanced LPG output, and contributions from other nearby plants were the main drivers of the improvement.

52,900 metric tonnes of cooking gas were provided to the domestic market in 2025, according to data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority. Just 7,100 metric tonnes, or 13%, of this volume were imported; the remaining 45,800 metric tonnes, or 87%, were sourced domestically.

Industry data indicates that LPG imports have steadily decreased as a result of local suppliers' increasing dominance, relieving pressure on foreign exchange demand and enhancing supply security in the home market.

Even if consumption is still rising, analysts point out that increased local production has helped stabilise availability.

The National Bureau of Statistics 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.

Prof. Wumi Iledare, a petroleum economist, responded in an interview with Vanguard on Tuesday, saying: "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."

Nigeria benefits economically from processing petroleum domestically rather than exporting crude and importing refined products, as demonstrated by the experience of LPG, which is led by the Dangote Petroleum Refinery, NLNG, and other domestic processors.

The 2025 LPG supply result demonstrates that domestic petroleum processing is an economic necessity rather than an ideological choice. When compared to the traditional paradigm of crude exports and refined product imports, it produces better results in terms of value retention, foreign exchange stability, employment, energy security, and industrial development.

"Going forward, Nigeria's dilemma is not whether to extend domestic processing but rather how rapidly and coherently infrastructure, policy, and regulation can scale it across the entire petroleum and gas value chain. Therefore, the LPG narrative should be viewed as a model for national energy-industrial policy rather than as a singular achievement.

In a similar vein, Mazi Colman Obasi, National President of the Oil and Gas Services Providers Association of Nigeria, stated: "This is a very good development." It demonstrates that Nigeria has made strides in obtaining cooking gas locally rather than importing it from the international market with our limited foreign currencies.

It would improve the country's energy security and have several multiplier impacts on the domestic economy, according to all indications.

Another researcher, who wished to remain unnamed, stated: "The country possesses enormous deposits of natural gas, part

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