The Future Of Clean Cooking In Nigeria: What LPG Expansion Really Requires Beyond Price Reductions

The Future Of Clean Cooking In Nigeria: What LPG Expansion Really Requires Beyond Price Reductions

For years, stakeholders in Nigeria’s energy sector have repeated a familiar message: reducing the price of Liquefied Petroleum Gas (LPG) will accelerate nationwide adoption. While affordability is undeniably important, recent events have demonstrated that lower LPG prices alone cannot solve Nigeria’s clean cooking challenge. With more than 70% of Nigerian households still relying on firewood, charcoal, kerosene, and other unsafe fuels (IEA, 2022), the true path to clean cooking requires a deeper examination of issues far beyond market-driven price cuts.

Countries such as Côte d’Ivoire, Kenya, and India show that price is only one piece of a much larger puzzle. For Nigeria to make genuine progress toward SDG 7 (clean and affordable energy for all) and its own Clean Cooking Policy ambitions, LPG expansion must be built on lasting reforms in infrastructure, distribution, safety, financing, and consumer trust.

1. Can Cheaper LPG Alone Drive Adoption? The Evidence Says No

While recent price cuts from the Dangote Refinery have briefly lowered ex-depot prices, retail prices remain inconsistent due to logistics, off-taker pricing, marine handling costs, and market speculation. Even if sustained price reductions occur, affordability does not automatically translate to accessibility.

Evidence from global and African markets shows that:

Households adopt LPG only when supply is reliable and refills are consistently available.

Upfront costs (cylinders, regulators, burners) remain prohibitive for millions of Nigerians.

Safety perceptions significantly affect consumer trust, especially after frequent gas explosion incidents.

Cultural and cooking habits such as large-pot meals make small single-burner LPG stoves insufficient.

Thus, price reduction is a welcome development, but it cannot drive mass adoption without structural reforms.

2. The Real Barriers: Infrastructure, Distribution, Safety, and Affordability

a. Infrastructure and Storage Deficits

Nigeria consumes about 1.2 million MT of LPG annually, but infrastructure has not grown proportionately. Storage terminals, inland depots, and transport networks are insufficient. 

This results in:

Frequent supply bottlenecks

High transport costs to northern states

Retail shortages during refinery or import disruptions

By contrast, Kenya and Côte d’Ivoire have invested steadily in storage, port terminals, and distribution hubs, enabling more stable supply.

b. Distribution and Cylinder Circulation Challenges

One of Nigeria’s biggest obstacles is the individual-ownership cylinder model, where consumers must buy, maintain, and refill their cylinder. This system creates:

High upfront cost barriers

Unsafe refilling practices

Fragmented market competition

Reluctance from marketers to invest in quality cylinders

Countries that made major progress, India through the Pradhan Mantri Ujjwala Yojana (PMUY) and Côte d’Ivoire through state-supported recirculation and subsidies relied on marketer-owned cylinder circulation. This model:

Reduces upfront costs to household

Ensures safer, well-maintained cylinders

Enables exchange at any outlet

Increases refill frequency

Without nationwide adoption of a functional Cylinder Recirculation Model (CRM), Nigeria may continue to struggle with unsafe practices and low adoption.

c. Safety Concerns and Consumer Trust

In Lagos, Ogun, and across the country, gas explosion incidents have increased due to:

Illegal roadside refilling

Leaking cylinders

Poorly regulated skids

Old, damaged hoses and accessories

Fear of explosions makes many households, especially in rural regions, unwilling to switch to LPG despite its benefits. A robust safety framework with enforcement, trained retailers, and standardized equipment is urgently necessary.

d. Affordability Must Address More Than Price per KG

Beyond the cost of the gas itself, households face:

₦30,000–₦85,000 for cylinders

₦10,000 upwards for burners and regulators

Transport costs to refill points

Price fluctuations due to supply disruptions

In Côte d’Ivoire, the government capped the refill price of a 6 kg cylinder at CFA 2,000 ($3.55) for years, an effective subsidy of nearly 50% (World Bank, 2022). This stability allowed household adoption to soar from around 50% to 85% in five years.

Nigeria, however, lacks such affordability protection.

3. Lessons from Côte d’Ivoire, Kenya, and India

Côte d’Ivoire: The Power of Subsidies and Stability

LPG access rose from 50% to 85% between 2018 and 2023.

Success driven by subsidies and marketer-owned cylinders.

Consistent policy direction encouraged private investment.

Kenya: Market Competition and Pay-As-You-Cook Innovation

Pay-as-you-cook LPG helped low-income households adopt gas safely.

Autogas expansion demonstrates consumer confidence in LPG.

Challenges remain with illegal refilling and fragmented pricing.

India: Scale, State Capacity, and Financing

LPG access increased from 55% to over 95% within five years under PMUY.

Government offered free cylinders, financing, and refill subsidies.

Digital tracking ensured safety and transparency.

These countries show that clean cooking transitions require deliberate, long-term investment not just short-term price cuts.

4. What Nigeria Must Do: Policy, Infrastructure, Safety, and Equity

a. Implement the Cylinder Recirculation Model (CRM) Nationwide

CRM shifts ownership from consumers to marketers, improving safety and reducing upfront cost. Nigeria has drafted CRM policies, but implementation has been slow.

b. Introduce Targeted LPG Subsidies

Subsidies should focus on:

Low-income households

First-time cylinder acquisition

Refill price stabilization

Rural communities

c. Strengthen Safety Enforcement and Standardization

Mandatory certification of retailers

Ban illegal roadside refilling

National safety audit of cylinders and tanks

Public education campaigns

d. Expand Storage and Inland Distribution

More depots in the North

Better transport infrastructure

Government-supported investment incentives

e. Support Local Production and Reduce Import Dependence

Ensure transparent scheduling and communication from Dangote Refinery

Strengthen NLNG domestic allocation

Develop smaller modular LPG extraction facilities

f. Encourage Pay-As-You-Cook and Micro-Financing Models

These models help low-income households overcome affordability barriers sustainably.

Conclusion: Nigeria’s Clean Cooking Future Depends on More Than Price

While Dangote’s price reductions are a positive development, they are not enough. Nigeria cannot rely on price drops alone to deliver clean cooking access to over 200 million people; the future hinges on policy consistency, safety reform, infrastructure investment, and innovative distribution models. Suppose Nigeria adopts the kinds of reforms that succeeded in Côte d’Ivoire, Kenya, and India. In that case, it can finally move beyond episodic market disruptions and begin a true, sustained clean cooking transformation.

Sources: 

International Energy Agency (IEA). (2022). Africa Energy Outlook.

Argus Media: Kenya makes strides in LPG expansion but hurdles remain

World Bank: Unlocking Clean Cooking Pathways 

Kenya: Kenya National Cooking Transition Strategy (Executive Summary): PDF

India: Pradhan Mantri Ujjwala Yojana (PMUY) Programme

India: Evidence & analysis of PMUY’s impact

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• cooking gas
• nigeria
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• Lpg in nigeria
• Nigeria
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