The Untold Challenges Behind Every LPG Project In Nigeria And Why They Matter More Than Ever

The Untold Challenges Behind Every LPG Project In Nigeria And Why They Matter More Than Ever

The Nigerian LPG industry is expanding faster than at any point in its history. From mini plants to full-scale depots and coastal terminals, investors are pouring billions into storage, distribution, and gas infrastructure. On paper, these projects look straightforward: buy land, hire contractors, build tanks, install equipment, and start loading gas. But anyone who has ever been truly involved in delivering an LPG facility in Nigeria knows one uncomfortable truth:

What slows down an LPG project is rarely “the construction.”

It’s everything happening around it.

Projects don’t fail because cylinders and tanks are complicated.

They fail because the industry ecosystem is complicated.

In fact, I’ve seen projects stalled for months because a single approval didn’t come through. I’ve watched construction teams hit unexpected underground water tables. I’ve seen budgets wiped out overnight because procurement was poorly scoped or foreign-exchange swings swallowed funds.

So let’s talk honestly about it.

Below is the real behind-the-scenes reality of LPG project development in Nigeria, the stuff most people don’t talk about, even though it determines whether a depot succeeds or collapses.

Why LPG Depot Projects in Nigeria Truly Struggle

1. Regulatory Delays and the Approval Maze

Every LPG project lives or dies by approvals from regulators like NMDPRA, environmental agencies, and planning authorities.

One missing document or unclear requirement can freeze progress for months.

Common bottlenecks include:

NMDPRA site suitability reviews

Environmental Impact Assessment (EIA) approvals

FEED (Front-End Engineering Design) validation

Fire service approvals

Town planning permits

Regulation is necessary for safety, but inconsistency, slow communication, and bureaucracy create major roadblocks. An investor can complete a ₦1.2 billion facility and still be unable to start operations simply because one permit is pending.

2. Hidden Site & Geotechnical Surprises

Many LPG projects begin without a proper soil investigation.

The result?

Weak soil requiring expensive piling

Waterlogged swamp terrain

Flood-prone sites

Expansive clay that undermines tank foundations

These conditions force redesigns that add weeks, costs, and headaches. Sometimes, the “cheap land” ends up being the most expensive mistake of the entire project.

3. Procurement & Supply Chain Risks Nobody Plans For

LPG facilities depend on long-lead imported equipment such as:

Spherical tanks

Cryogenic storage

Pumps and compressors

Firewater system

Automated instrumentation

With Nigeria’s FX volatility, procurement becomes a gamble:

Dollar spikes increase costs mid-project

Delays in LC processing extend delivery timelines

Shipping congestion and customs clearance cause unexpected downtime

Procurement alone can derail an entire project schedule if not managed with expertise.

4. Engineering Complexity & the Safety Challenge

People often underestimate the engineering sophistication required in LPG projects.

Safety design alone is a science:

NFPA 58 / 59 compliance

Firewater demand calculation

Hazardous area zoning

Explosion-proof electrical designs

Jet-fire and pool-fire modeling

Leak detection and fail-safe systems

When early-stage engineering is weak, projects inevitably face redesigns, cost escalation, and regulatory rejection.

5. Contractor Skill Gaps

Many local contractors underestimate LPG-specific construction requirements.

Civil and MEP contractors used to regular commercial buildings struggle with:

Pressure-rated piping

Ex-proof electricals

Standardized tank foundations

Safety distance codes

Specialized mechanical installations

Corrections become expensive. Rework steals time.

And inadequate skill becomes a hidden but serious risk.

6. Financial Instability & Cost Escalation

Between FX fluctuations, inflation, and import dependence, no budget is ever truly stable in the Nigerian LPG sector. A project costing ₦800 million can easily become ₦1.3 billion before completion.

When financing is tight, the project enters a dangerous cycle of:

Delayed procurement

Cutting corners

Contractor disputes

Stalled timelines

Abandoned sites

7. Stakeholder Coordination Breaking Down

This is the silent killer of LPG projects.

You may have:

EPC contractors

OEM equipment suppliers

Regulators

HSE consultants

Financiers

Local authorities

But they rarely move at the same speed.

When communication collapses between even two teams, everything slows down.

Sometimes, this is the only reason a project that should be completed in 8 months drags into two years.

The Bigger Picture: What This Means for LPG Growth in Nigeria

LPG is Nigeria’s best pathway to a cleaner energy future.

But the challenges outlined above are more than project-level issues they are industry-wide barriers holding back national progress.

Why this matters:

Nigeria has the potential to become West Africa’s LPG hub.

Demand is rising as households switch from firewood and kerosene.

Investors are ready, but confidence drops when projects drag.

Infrastructure delays contribute to price instability nationwide.

Supply chain bottlenecks worsen scarcity and drive up cost per kg.

If Nigeria wants affordable LPG for households, stable prices, and real energy transition, we must improve:

Regulatory timing

Engineering quality

Contractor competence

Procurement strategy

Project governance

A stronger LPG infrastructure network directly leads to:

lower retail prices

more competition

better access for rural communities

fewer supply disruptions

safer operations

a cleaner national energy footprint

The Truth: LPG Projects Don’t Fail Because They’re “Hard”… They Fail Because People Assume They’re Simple

High-level energy infrastructure is never simple.

It is an engineered discipline.

It requires coordination, foresight, and expertise.

When a project is properly planned, well-engineered, and managed with discipline:

Timelines become predictable

Budgets stay controlled

Regulators cooperate better

risks become manageable

Investors finally get the certainty they were promised

This is how we build the LPG future Nigeria deserves.

So we will end this blog post with the same question asked by Amadou Mamoudou. What do you think is the biggest challenge? Regulation? Engineering? Procurement? or Coordination? 

Source: Amadou Mamoudou on LinkedIn. 

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