Nigeria's gas market grows 30% on reforms as LPG prices spike over supply worries

Domestic gas sales in Nigeria increased by roughly 30 % between January 2022 and January 2025, rising from 49.3 billion standard cubic feet to 64.2 billion. The growth is attributed to reforms under the Petroleum Industry Act 2021 and subsequent executive orders, which introduced clearer regulation, pricing liberalisation, an infrastructure fund and a Domestic Gas Delivery Obligation framework aimed at boosting supply to power and industry.

Despite the gains, the sector still faces infrastructure gaps, payment risks and implementation challenges. At the same time, Nigeria is experiencing a sharp rise in LPG prices. Retailers report roadside prices of about N2,000 per kg and major marketers charging N1,600 per kg, with wholesale costs jumping from roughly N900,000 to N1.7 million per tonne. Retailers have urged local producers to prioritize domestic supply over exports, blaming global energy pressures and local logistics costs. The government maintains a ban on LPG exports, enforced by the regulator, and expects the new Seplat Gas facility to add domestic LPG supply from July.