Nigeria Turns to Imports to Close 165,000MT Cooking Gas Deficit as Local Supply Lags.

Nigeria will import 165,000 metric tonnes of LPG in 2026 to cover cooking gas deficit. Demand growth, FX, and local supply gaps keep prices under pressure.

By Mbaegbusi Desmond.

Nigeria is importing 165,000 metric tonnes of Liquefied Petroleum Gas to close a supply deficit in 2026. The move highlights the gap between the country’s huge gas reserves and the cooking gas available in homes across Lagos, Abuja, Kano, and Port Harcourt.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority confirmed that marketers have received approvals to bring in multiple cargoes through Lagos and other coastal terminals. The 165,000MT volume is spread across the third and fourth quarters of 2026 and is meant to stabilize supply ahead of peak demand in December.

Why Nigeria Has a 165,000MT LPG Deficit

Nigeria holds over 200 trillion cubic feet of proven natural gas. Yet the country imports over 40 percent of the LPG it consumes. Three factors explain the 165,000MT gap.

First, demand is rising fast. Government policy under the Decade of Gas is pushing households to switch from firewood, charcoal, and kerosene to LPG. Health campaigns and state-level projects have driven adoption. Nigeria’s LPG consumption moved from under 500,000MT per year a decade ago to more than 1.4 million MT in 2025. Supply did not grow at the same pace.

Second, local supply is constrained. Nigeria LNG Limited currently allocates 350,000MT annually to the domestic market. The rest of domestic supply comes from gas processing plants and a few private depots. Scheduled maintenance, evacuation bottlenecks, and limited storage reduce volumes that actually reach filling plants. When producers have a choice between export contracts priced in dollars and domestic supply priced in naira, export often wins.

Third, infrastructure is still catching up. Nigeria has few large coastal LPG terminals. Trucking, cylinder injection, and last-mile distribution remain expensive. Every delay at the port or on the road adds to the retail price.

How the 165,000MT Import Plan Works

Major marketers will source LPG from global suppliers and deliver it to terminals in Apapa, Warri, and Port Harcourt. From there, trucks move product to inland depots and retail plants. The NMDPRA says the imports are a bridge measure while new domestic projects ramp up.

The key risk is foreign exchange. Imported LPG is priced in dollars. With the naira still volatile in 2026, landing costs are high. Marketers must access FX at official or parallel rates, pay port charges, and cover logistics before a single cylinder is filled. That cost chain explains why a 12.5kg cylinder still retails between 12,000 and 14,500 naira in most cities as of June 2026.

What Government and Industry Are Doing

The Federal Government says the long-term answer is not imports but domestic production. Nigeria LNG is working on increasing its domestic LPG allocation. New gas processing projects in Delta, Imo, and Akwa Ibom are expected to add volumes from 2027. The Presidential Compressed Natural Gas Initiative has also freed up some LPG by moving commercial vehicles to CNG.

The NMDPRA has started stricter monitoring of volumes allocated to the domestic market to reduce diversion to export. It is also licensing new coastal terminals and mini-depots to cut distribution costs. On the fiscal side, the Ministry of Finance retained VAT waivers on locally produced LPG and on LPG equipment to encourage investment.

For families, the 165,000MT import plan should prevent the kind of scarcity seen in late 2023 and 2024. Shops will have stock. But prices will remain sensitive to two things: the naira to dollar rate and global LPG prices. If the naira weakens or winter demand in Europe spikes propane prices, Nigerian retail prices will follow.

Experts say three steps will bring lasting relief. One, raise NLNG and domestic gas plant output to cover 100 percent of local demand. Two, expand storage and build rail or pipeline options to cut trucking costs. Three, deepen cylinder penetration through exchange programs so households do not bear the full cost of switching.

Nigeria’s decision to import 165,000MT of cooking gas is practical. Demand is real and growing. Local supply is not yet enough. Imports keep the market wet and stop panic buying. But imports also tie cooking gas to the dollar and to global politics.

The real win will come when Nigeria produces, stores, and moves enough LPG to meet its own needs without ships from abroad. Until then, the 165,000MT cargoes are the bridge between gas ambition and kitchen reality.