Nigeria recorded a major shift in its domestic cooking gas market in 2025, as local refineries and gas processing plants supplied 87% of the country’s Liquefied Petroleum Gas (LPG) demand, significantly reducing reliance on imports.
Findings showed that domestic supply totalled 45,800 metric tonnes out of the 52,900 metric tonnes of LPG consumed during the year, according to data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Imports accounted for just 7,100 metric tonnes, or 13% of total supply. This marked a sharp turnaround from 2023, when imported cooking gas made up about 47% of national consumption.
The improvement was driven largely by increased output from the Dangote Petroleum Refinery, higher LPG production by Nigeria LNG (NLNG) Limited, and contributions from other local processing plants. Industry data indicate that the growing dominance of domestic suppliers has steadily reduced LPG imports, easing pressure on foreign exchange demand and improving supply security.
Analysts say higher local production has also helped stabilise availability in the market, even as consumption continues to rise. The National Bureau of Statistics (NBS) confirmed the trend, reporting sustained growth in domestic LPG output alongside declining import volumes, attributing the shift to expanded refining and gas processing capacity and supportive policy reforms.
Monthly supply data showed consistent output throughout the year, with combined supplies of 3,200 metric tonnes in January, 3,800 in February, 3,400 in March and 3,800 in April. Output rose to 3,800 metric tonnes in May, 4,000 in June, 4,500 in July and 4,400 in August, before moderating to 3,700 in September, 4,200 in October, 3,300 in November and 3,700 in December.
Commenting on the development, petroleum economist Prof. Wumi Iledare said the milestone validates the economic case for domestic petroleum processing. He noted that value creation occurs at the point of processing rather than extraction, adding that the 2025 LPG outcome demonstrates the benefits of refining and gas processing at home in terms of foreign exchange stability, employment, energy security and industrial development.
“The LPG story should be treated not as an isolated success, but as a template for national energy-industrial strategy,” Iledare said, urging policymakers to scale domestic processing across the entire petroleum and gas value chain.
The National President of the Oil and Gas Services Providers Association of Nigeria (OGSPAN), Mazi Colman Obasi, also welcomed the progress, saying it reflects reduced dependence on imports and more efficient use of foreign exchange. He added that increased local sourcing would generate multiplier effects across the economy while strengthening energy security.
Another industry analyst highlighted Nigeria’s vast natural gas reserves and the environmental cost of gas flaring, calling for continued support for local processors. He said the performance of the Dangote Petroleum Refinery, NLNG and other operators raises expectations that Nigeria could eventually source 100% of its cooking gas domestically, further enhancing sustainability and self-sufficiency.