LAGOS—Gas-rich Nigeria is facing a domestic energy crisis as the retail price of liquefied petroleum gas, used widely for cooking, surged to an unprecedented 1,700 naira ($1.15) per kilogram.
The extreme price hike has forced independent marketers to warn that frustrated consumers may soon vent their anger directly by attacking local cooking gas filling stations.
Industry data shows the price to refill a standard 12.5-kilogram cylinder has spiraled toward 21,250 naira, a devastating blow in a nation struggling with deep cost-of-living adjustments.
“Citizens may rise against the owners of gas filling stations if this supply crisis is not immediately checked,” warned Bassey Essien, Executive Secretary of the Nigerian Association of Liquefied Petroleum Gas Marketers.
Marketers blame severe shortages and a near-monopoly at coastal depots, where the wholesale cost of a 20-metric-tonne truck has skyrocketed beyond 25 million naira, squeezing retail margins.
The crisis hits at a difficult time, as inflation remains stubbornly high following aggressive government economic reforms, including the removal of fuel subsidies and devaluation of the local currency.
Unable to afford the surging costs, millions of low-income urban households are rapidly abandoning clean energy initiatives and reverting to cheaper, polluting biomass alternative fuels like charcoal and firewood.
According to official data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigeria’s proven natural gas reserves stand at 215.19 trillion cubic feet (TCF). This massive volume makes Nigeria the largest natural gas reserve holder in Africa.
Despite sitting on Africa’s largest gas reserves, Nigeria faces a deep domestic paradox. The vast majority of the gas captured is cooled and processed for high-value export as Liquefied Natural Gas (LNG) to Europe and Asia to generate foreign exchange.
