Allegations that locally refined Liquefied Petroleum Gas (LPG) is being diverted to foreign markets for higher returns have been firmly dismissed by the Federal Government, which maintains that an existing export restriction remains fully in force and is being actively enforced.

The clarification comes amid growing anxiety among retailers and consumers over persistent cooking gas scarcity and escalating prices across Nigeria, with stakeholders questioning whether domestic supply is being undermined by export-driven incentives.

Concerns had earlier been raised by the Chairman of the Liquefied Petroleum Gas Retailers Association (LPGRA), Ayobami Olarinoye, who alleged that limited product availability and possible diversion of supply to West African markets were worsening the situation. According to him, some producers may be prioritising exports due to profitability differences.

However, the Federal Ministry of Petroleum Resources has pushed back strongly against these claims.

Speaking exclusively to The PUNCH, the spokesman for the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, Louis Ibah, insisted that no licensed operator is permitted to export LPG meant for domestic use.

“The ban on exports of LPG announced by the Minister of State for Petroleum Resources (Gas), Dr Ekperikpe Ekpo, is still in place to stabilise prices and is strictly enforced by the NMDPRA,” Ibah said.

He further stressed that domestic supply remains the government’s priority, rejecting suggestions that local production is being redirected abroad.

“It’s important to note that none of our producers are currently exporting the LPG meant for cooking in Nigeria, so all resources are focused on meeting our local needs,” he said.

The government’s reassurance comes at a time when many households are struggling with rising costs and inconsistent availability of cooking gas. Retailers report that supplies from depots and filling plants have become increasingly erratic, with some outlets experiencing prolonged shortages.

Olarinoye described the supply situation as increasingly strained, warning that access to LPG has become significantly more difficult in recent weeks. He also noted that distribution patterns have shifted in ways that disadvantage retailers.

“Getting the product has been excruciatingly difficult, and it is not readily available. Out of every 10 plants, only one or two would have products to sell to our members. Many of them, especially those situated in relatively residential areas, prefer to sell directly to end-users, while a few are still selling to retailers,” he stated.

He added that without intervention, price relief is unlikely in the near term. “The high price may remain the way it is until the situation changes positively,” the LPGAR boss noted.

Beyond complaints, he urged government action to stimulate investment in the LPG value chain, arguing that increased participation could help stabilise supply and ease pricing pressure.

A source within the regulatory space said efforts are underway to address the supply bottlenecks through collaboration between agencies.

“The regulator is collaborating with the Nigerian National Petroleum Company Limited and other key stakeholders to further boost LPG availability in the local market,” the source said.

The same source also pointed to expected new supply streams, noting that a facility operated by Seplat Energy is expected to begin LPG delivery into the domestic market by July, a development described as potentially significant for easing shortages.

“This means we can expect a significant improvement in supply,” the source added.

Meanwhile, the broader policy direction of government remains focused on expanding domestic gas utilisation and infrastructure. The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, reiterated this stance at the Association of Local Distributors of Gas Business Forum 2026 in Abuja.

Represented by the Director of Midstream and Downstream, Mrs Ikenma Irene, he warned that Nigeria’s vast reserves would remain underutilised without effective distribution systems.

“Nigeria’s development will not be measured by the volume of gas beneath our soil but by the extent to which that gas powers industries, supports households, creates jobs, and fuels sustainable economic growth,” the minister stated.

He noted that Nigeria holds more than 209 trillion cubic feet of proven natural gas reserves but stressed that infrastructure deficits and weak distribution networks continue to limit domestic impact.

According to him, achieving meaningful progress will require sustained reforms, investment, and stronger institutional coordination. He also reaffirmed ongoing policy efforts under the Decade of Gas Initiative and reforms introduced through the Petroleum Industry Act 2021.

“Nigeria must now move decisively from gas abundance to gas accessibility. The success of this vision requires policy consistency, strong institutions, strategic investments, infrastructure expansion, security collaboration, and sustainable stakeholder partnerships,” he said.

He urged stakeholders across the sector to focus on practical steps that improve access and affordability for consumers.

“Let us remain focused on building a gas sector that delivers real value to Nigerians—one that powers industries, supports households, creates jobs, enhances energy security, and drives inclusive national development,” he stated.

He concluded with a call for implementation-driven reforms rather than policy statements alone.

“Let us move from gas abundance to gas access. Let us move from policy to implementation. Let us build a gas economy that works for all Nigerians,” he added.