By Atoyebi Nike
President of the Dangote Group, Alhaji Aliko Dangote, has unveiled plans to slash the price of Liquefied Petroleum Gas (LPG) and consider direct sales to consumers if current distributors resist price reductions. But the move has sparked concern among stakeholders, who accuse the billionaire of trying to monopolize Nigeria’s LPG market.
Speaking during a facility tour at his Lekki refinery with members of the Lagos Business School CGEO Africa group, Dangote said his refinery now produces 2,000 tonnes of LPG daily and is working to make the product more affordable.
“LPG is still expensive. If the distributors don’t help bring down the price, we’ll sell directly to the people,” Dangote stated, stressing the need to encourage a shift from firewood and kerosene to cleaner cooking options.
Currently, LPG retails between ₦1,000 and ₦1,300 per kilogramme. Dangote believes these prices can drop with increased local supply and reduced intermediary costs.
However, industry veterans are pushing back. Godwin Okoduwa, former chairman of the LPG group under the Lagos Chamber of Commerce, labelled Dangote’s plan “monopolistic,” urging collaboration instead of disruption.
“The LPG market grew from 70,000 to over 1.3 million tonnes through partnership. Growth isn’t driven by monopolies,” he said, warning against sidelining longstanding investors.
Okoduwa challenged Dangote to help expand LPG access in under-served regions like the North-East, rather than dominate established markets.
Also skeptical, Bassey Essien of the Nigerian Association of LPG Marketers, said, “It’s unrealistic to claim he’ll sell directly to consumers or crash prices. Has he done that with petrol?”
Despite criticism, Dangote’s offer presents a challenge to traditional market forces and signals a shift in domestic gas supply strategy. Whether this results in lower prices or market tensions remains to be seen.
