The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has projected that the retail price of cooking gas could fall to between N900 and N1,100 per kilogram by the end of 2026 if the federal government implements reforms aimed at boosting supply and reducing costs across the value chain.

President of NALPGAM, Mr. Edu Inyang, made the projection during an interview with the News Agency of Nigeria (NAN) in Lagos, noting that although Nigeria has recorded significant growth in local Liquefied Petroleum Gas (LPG) production, persistent supply chain challenges continue to keep prices elevated.

According to him, cooking gas, which sold for between N900 and N1,000 per kilogram in April, currently costs between N2,000 and N2,500 per kilogram in many parts of Lagos.

Inyang disclosed that Dangote Refinery and Nigeria LNG (NLNG) supplied about 87 per cent of Nigeria’s domestic LPG market in 2025. However, he explained that Dangote Refinery later clarified that much of its LPG output was earmarked for the production of higher-value products rather than the domestic cooking gas market, resulting in supply disruptions.

He noted that despite increased local production, several producers are still operating below installed capacity, leaving rising consumer demand unmet.

According to him, inadequate storage facilities, high transportation costs, foreign exchange challenges and multiple handling charges within the supply chain remain major contributors to high retail prices.

He further observed that LPG storage infrastructure is concentrated mainly in Lagos, the Edo/Delta axis and Port Harcourt, resulting in higher distribution costs, especially for northern states.

“Local production growth is encouraging, but consumers will not fully benefit unless bottlenecks in logistics, depot capacity, trucking and market access are addressed,” Inyang said.

The NALPGAM president also identified speculative trading, excessive intermediary margins and temporary product hoarding as factors contributing to periodic price distortions and artificial scarcity.

To improve affordability, he called for stronger market surveillance, greater transparency in product allocation and pricing, and stricter enforcement of fair competition across the LPG value chain.

Among the reforms proposed by the association are prioritising domestic LPG supply over exports, improving access to foreign exchange, reducing regulatory bottlenecks, expanding clean cooking support programmes, investing in storage infrastructure and introducing tax incentives for investors.

“With adequate domestic supply, improved infrastructure, exchange-rate stability and supportive government policies, the industry can achieve a more affordable and stable pricing environment,” Inyang stated.

He, however, cautioned that the projected price range should be viewed as a target rather than a guarantee, as global energy prices and exchange rate fluctuations would continue to influence the market.

Meanwhile, the federal government has assured Nigerians that LPG supply remains stable despite recent increases in cooking gas prices.

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, attributed the price surge to foreign exchange volatility, rising logistics costs, infrastructure limitations and movements in international LPG prices.

He reiterated the government’s directive that all LPG produced in Nigeria should first be prioritised for domestic consumption before exports, describing the policy as critical to improving local availability and reducing import dependence.

Ekpo also directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to strengthen collaboration with industry stakeholders to improve supply coordination and prevent market disruptions.

Data from the National Bureau of Statistics (NBS) shows that the average price of refilling a 5kg cylinder rose by 13.73 per cent from N7,655.73 in March to N8,706.93 in April, while the average cost of refilling a 12.5kg cylinder increased by 13.89 per cent from N19,652.83 to N22,382.20 during the same period.

Industry stakeholders maintain that with sustained reforms, improved infrastructure and increased domestic production, Nigeria’s LPG market could witness greater stability and more affordable prices for consumers in the coming years.

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Nigeria’s electricity sector has received at least $3.653 billion in World Bank-backed funding over the past 24 years, yet millions of households and businesses across the country continue to grapple with unstable power supply, frequent national grid collapses and an overwhelming reliance on generators.

An analysis of World Bank-supported electricity projects between 2001 and 2024 shows that successive interventions targeted transmission upgrades, sector reforms, rural electrification, renewable energy expansion and recovery programmes designed to stabilise Nigeria’s struggling power industry.

According to data from the World Bank, as highlighted by Statisense, major interventions include the $100 million Transmission Development Project launched in 2001, the $172 million National Energy Development Project in 2005 and the $400 million Nigeria Electricity and Gas Improvement Project introduced in 2009.

Other projects include the $145 million Nigeria Power Sector Guarantees Project in 2014, the $486 million Nigeria Electricity Transmission Project in 2018, the $350 million Nigeria Electrification Project also launched in 2018, the $750 million Power Sector Recovery Programme approved in 2020, the $750 million Distributed Access through Renewable Energy Scale-up Programme introduced in 2023 and the $500 million Sustainable Power and Irrigation for Nigeria Project launched in 2024.

Collectively, the projects account for approximately $3.653 billion in funding, excluding regional interconnector and hydro rehabilitation initiatives whose financial details were not disclosed.

Electricity Challenges Persist Despite Billions in Funding

Despite the substantial investments, Nigeria’s electricity supply remains inadequate for its growing population and expanding industrial sector.

The national grid continues to experience repeated collapses, while power generation has remained below the level required to meet national demand. As a result, households and businesses still depend heavily on petrol and diesel generators due to unreliable electricity supply from distribution companies.

Industry experts have attributed the persistent crisis to weak transmission infrastructure, liquidity challenges within the power market, gas supply constraints, vandalism, inadequate investment and policy inconsistencies.

Shift Towards Renewable Energy Solutions

The pattern of interventions reflects a gradual shift in the World Bank’s strategy from conventional transmission and gas-focused projects toward renewable energy and decentralised electricity access.

Recent programmes such as the Distributed Access through Renewable Energy Scale-up initiative and the Sustainable Power and Irrigation for Nigeria Project are designed to expand solar-powered electricity access, particularly in rural and underserved communities.

The World Bank has maintained that these initiatives are intended to improve electricity access, strengthen transmission infrastructure and support reforms capable of attracting private sector investment into Nigeria’s power sector.

However, concerns remain regarding the pace of implementation and the actual impact of these interventions on electricity consumers nationwide.

Businesses Continue to Face High Energy Costs

Businesses across Nigeria continue to cite rising energy costs as one of their biggest operational challenges, with manufacturers spending significant amounts on self-generation due to unreliable grid power.

The persistent electricity crisis has also negatively affected productivity, healthcare delivery, small businesses and overall living conditions across the country.

Stakeholders argue that Nigeria’s continued dependence on donor-backed interventions highlights the depth of structural challenges facing the power sector, more than a decade after the privatisation of electricity generation and distribution companies.

While the interventions have contributed to infrastructure development and improved electricity access in some communities, a stable and reliable nationwide electricity supply remains largely elusive.

Federal Government Cancels $717.7m World Bank Facility

The development comes after the Federal Government cancelled $717.7 million in undisbursed World Bank financing earmarked for Nigeria’s electricity sector.

Documents obtained from the World Bank revealed that the cancellation affected the remaining balance of a $1.52 billion Power Sector Recovery Programme following a joint decision by both parties to discontinue financing due to evolving sector realities and challenges in meeting key reform milestones.

According to the World Bank restructuring paper, the entire undisbursed balance was cancelled, while the programme’s closing date was moved forward from June 30, 2027, to May 31, 2026.

Expert Blames Corruption, Governance Failures

Reacting to the situation, Professor of Energy at the University of Lagos, Dayo Ayoade, blamed corruption and poor governance for Nigeria’s persistent electricity challenges.

According to him, the country’s economy will continue to suffer unless decisive reforms are implemented within the power sector.

“Until the power sector is fixed, Nigerians and the economy will continue to suffer. Self-generation is inefficient and expensive for households and businesses,” he said.

Ayoade called for comprehensive reforms, improved governance, stronger accountability mechanisms and the gradual removal of electricity subsidies to ensure tariffs reflect the true cost of power generation and distribution.

He also warned against the proliferation of institutions within the sector, stressing the need for streamlined operations and stronger anti-corruption measures.

“Billions of dollars have been spent on power projects over the years with little improvement in electricity supply. We must address governance failures, leakages and corruption if we are serious about solving Nigeria’s electricity crisis,” he added.

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The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called off its three-day strike following a breakthrough in negotiations with Dangote Refinery.

The truce was reached during a marathon meeting at the Office of the National Security Adviser, where both parties signed an agreement aimed at resolving the dispute that had paralyzed operations.

Announcing the suspension at a press briefing, PENGASSAN President Festus Osifo cautioned the refinery’s management against backtracking on the deal. “If the company reneges on its agreement, the union would not take it lightly,” he warned.

The disagreement stemmed from the unionisation of some refinery employees, a move that had placed PENGASSAN and the refinery on a collision course. With the strike suspended, industry watchers say attention will now turn to whether both sides can sustain dialogue and prevent further disruption in the sector.

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