NLNG dedicates 100% of LPG output to Nigerian market as cooking gas prices drop to N1,075/kg
By Aboki Forex —
Nigeria LNG Limited has dedicated 100% of its liquefied petroleum gas production to the domestic market, ending exports in a push to improve access to affordable cooking gas. Prices have already fallen to around N1,075 per kilogram in many locations.
The announcement came as cooking gas prices continue to decline across the country, offering relief to households facing a high cost of living.
Record supply to local market
Speaking during his maiden media briefing, NLNG Managing Director and Chief Executive Officer Adeleye Falade said the company supplied a record 500,000 metric tonnes of LPG to the Nigerian market in 2025, the highest annual volume since local distribution began in 2005.
NLNG started with just 70,000 metric tonnes of LPG to the local market in 2005 and has increased that figure more than sevenfold. The company now accounts for roughly one-third of Nigeria's total cooking gas demand.
"Last year was the highest volume we have ever supplied in a single year when we supplied 500,000 tonnes of LPG. Today, that's about 33 per cent of what the country demands," Falade said.
Why NLNG stopped exporting
The decision to dedicate all LPG production to the Nigerian market was influenced by concerns over the health risks associated with continued use of firewood, charcoal and other biomass fuels by millions of households.
The company said the move aligns with efforts to encourage cleaner cooking solutions, reduce environmental pollution and improve public health, particularly among women and children who are most exposed to harmful smoke from traditional cooking methods.
Bigger economic footprint
Beyond domestic supply, NLNG said it has generated more than $150 billion in revenue and exported over 6,000 LNG cargoes worldwide since commencing operations.
The company has paid over $47.2 billion in dividends to shareholders, remitted more than $10 billion in taxes to the Federal Government and built an asset base valued at approximately $23 billion.
NLNG also reaffirmed its expansion plans. Work on Train 7 is progressing, and preliminary discussions have begun on the proposed Trains 8, 9 and 10, which are expected to strengthen Nigeria's position in the global liquefied natural gas market.
Cooking gas prices keep falling
Cooking gas, which sold for around N2,500 per kilogram in May, is now available in many locations for nearly N1,075 per kilogram. Data from PetroleumPriceNG show the average depot price has fallen to about N1,050 per kilogram.
Depots offering some of the lowest prices include Rainoil Lagos at N1,035 per kilogram, PPMC at about N1,050, Matrix Warri at N1,065, while 11Plc also recorded one of the country's most competitive LPG prices.
The price decline follows a surge in LPG imports and declining international crude oil prices. In addition, the Federal Government recently removed import duty and Value Added Tax on cooking gas, CNG and electric vehicles under the Presidential Gas for Growth Initiative, a policy announced by the Nigeria Customs Service on Thursday, July 30, 2026.
With NLNG committing its entire LPG production to the domestic market and supply improving steadily, industry observers believe Nigerians could continue to benefit from lower cooking gas prices in the months ahead, provided global energy prices remain stable and distribution challenges are effectively managed.