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Home»Oil $ Gas»FG Denies Allegations Of LPG Export Despite Domestic Scarcity
Oil $ Gas

FG Denies Allegations Of LPG Export Despite Domestic Scarcity

Tanko LamiBy Tanko LamiJune 13, 20265 Mins Read
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Why FG Stopped Exportation Of Cooking Gas
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ABUJA, Nigeria (VOICE OF NAIJA)-An official with the Federal Ministry of Petroleum Resources has denied claims that locally produced cooking gas is being exported in foreign currency at the expense of domestic consumers, insisting that a ban on Liquefied Petroleum Gas (LPG) exports remains in force despite rising prices and supply concerns across the country.

The clarification followed concerns by cooking gas retailers that some locally produced LPG was being sold to West African buyers because it was more profitable than supplying the domestic market.

The Chairman of the Liquefied Petroleum Gas Retailers Association, Ayobami Olarinoye, had said that persistent scarcity and high prices of cooking gas were being worsened by limited product availability and alleged exports by a local refinery.

The spokesman for the Minister of State for Petroleum Resources (Gas), Louis Ibah, dismissed the claim, saying the Federal Government’s restriction on LPG exports remains in place and is being enforced by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

READ ALSO: Why Terrorism Remains Difficult To Defeat In Nigeria — Musa

“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 on Thursday.

Ibah emphasised that none of the local producers is allowed to export cooking gas, adding that supply is being directed solely at the domestic market.

 “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 position comes amid growing concerns over rising cooking gas prices and supply shortages across several parts of the country, with retailers and consumers reporting difficulties accessing products.

Describing the situation, Olarinoye said access to cooking gas had become increasingly difficult in recent weeks.

 “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 warned that prices were unlikely to decline in the immediate term unless there was an intervention. “The high price may remain the way it is until the situation changes positively,” he said.

Olarinoye also urged the Federal Government to introduce incentives that would attract more investors into the LPG market and strengthen domestic supply.

A source at the Nigerian Midstream and Downstream Petroleum Regulatory Authority said the regulator was working with the Nigerian National Petroleum Company Limited and other stakeholders to improve product availability.

 “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.

It was also gathered that a new Seplat gas facility is expected to begin LPG supply to the domestic market by July, with expectations of improved availability. “This means we can expect a significant improvement in supply,” the source added.

Meanwhile, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, has called for stronger efforts to improve domestic gas distribution and utilisation across the country.

Speaking at the Association of Local Distributors of Gas Business Forum 2026 in Abuja, Ekpo said Nigeria’s vast gas reserves would remain economically insignificant unless translated into accessible energy for households, industries and businesses.

Represented by the Director, Midstream and Downstream, Mrs Ikenma Irene, he delivered a keynote address titled, “From Gas Abundance to Gas Access: Reassessing Nigeria’s Gas Distribution Imperatives”.

He noted that Nigeria holds more than 209 trillion cubic feet of proven natural gas reserves but stressed that development would depend on how effectively the resources are utilised.

“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 also highlighted infrastructure gaps, weak distribution networks and limited market penetration as major constraints to domestic gas utilisation.

Ekpo reiterated the Federal Government’s commitment under President Bola Tinubu to accelerate domestic gas development through the Decade of Gas initiative and reforms under the Petroleum Industry Act 2021 aimed at improving investor confidence and private sector participation.

Bola Tinubu, he said, remains committed to deepening reforms in the gas sector.

“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 operators to focus on practical solutions that would expand infrastructure and ensure affordable access to gas.

“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.

The minister concluded with a call for full implementation of gas sector reforms. “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.

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Tanko Lami

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