Victor EzejaPresident of Dangote Group, Alhaji Aliko Dangote, has announced plans by his Refinery to begin direct sale of cooking gas, also referred to as Liquefied Petroleum Gas (LPG), with the goal of bringing down the cost for consumers.
He said his company would take this step if distributors fail to implement a price cut for the benefit of consumers.
Join our WhatsApp ChannelDangote, who made this known during a recent tour of his refinery by some local and foreign guests, emphasised that high gas prices force many Nigerians to rely on firewood, contributing to deforestation and health hazards.
The current price ranges between ₦1,000–₦1,300 per kilogram, but Dangote aims to bring it down further.
According to him, the refinery now produces 22,000 tonnes of LPG per day and is increasing production for distribution into the Nigerian market, particularly as Nigerians switch to gas for cooking.
“You know Nigeria is gradually moving to the usage of LPG,” he told the guests.
However, LPG marketers have kicked against Dangote’s move, arguing that it could create a monopoly, squeezing out smaller players.
READ ALSO: More Trouble For Nigerian Households As Cooking Gas Price Rises Further
Former Chairman of the LPG and Natural Gas Downstream Group of the Lagos Chamber of Commerce and Industry, Godwin Okoduwa, said the move would have a negative effect on marketers who, according to him, grew the industry from 70,000 metric tonnes in 2007 to over 1.3 million tonnes in 2022.
According to a report in the Punch, Okoduwa said the growth of the LPG industry in Nigeria was achieved through the collaboration of stakeholders and urged Dangote to key into that rather than taking a step that will displace them.
Dangote’s comment on gas has elicited reactions from Nigerians on social media. They welcomed the development with hashtags like #DangoteGas #CrashThePrice and #CookingGasRelief.
An X user, Desmond, with handle @deckdesmond wrote: “It will bring much-needed relief to millions of households.”
“The real problem in Nigeria has never been the product—it’s the profiteering middlemen, backed by a government that lets them thrive. Dangote’s move may help, but until the system itself is unclogged, this is just smoke, not fire,” another X user, Marvellous Israel, wrote.
However, some expressed concerns that Dangote might turn around to hike the price after edging out gas distributors.
‘After kicking out distributors, you increase the price with no hope of getting supply from any other place except your company like you did with other cement companies… Nigeria is a joke,” an X user, Felix Klen, stated.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
