The Nigerian Association of Liquefied Petroleum Gas Marketers has raised the alarm over the erratic supply and rising cost of Liquefied Petroleum Gas, otherwise known as cooking gas, warning that the situation could trigger scarcity and worsen hardship for millions of Nigerians.

The association said cooking gas is now selling for over N1,500 per kilogramme, while marketers currently pay between N25.2m and N26.2m for 20 metric tonnes of the product, depending on location. The product is sold at between N1,600 and N2,000 by many other dealers.

Checks by our correspondent on Sunday confirmed that the essential commodity jumped from less than N1,000/kg recently to around N1,500 or more, depending on the location.

In a statement jointly signed by the National President of NALPGAM, Edu Inyang, and the Executive Secretary, Mr Bassey Essien, the association described the development as “sad and rather very pathetic”.

“The citizens of Nigeria have woken up to buy cooking gas, which should be a social item, at a prohibitive cost of over N1,500 per kg, while the marketers are made to pay as much as N25,200,000 or, depending on the location, N26,200,000 for 20 metric tonnes of cooking gas.

“We feel that if the situation is not immediately checked, the citizens may rise against the owners of gas filling stations,” the marketers expressed fears.

They said the development had brought untold hardship to millions of Nigerian households, small businesses, food vendors, and low-income families who rely on LPG for daily cooking and livelihood.

According to the association, the situation is “seriously eroding the substantial progress made by the government” on the usage of clean energy in the country. The group maintained that its members across the country were facing difficulties sourcing LPG due to “persistent supply shortages, high depot prices, logistics bottlenecks and uncontrollable rising operational costs”.

“We observe that where product is available, it is sold at rates far beyond the reach of average Nigerians,” the association stated.

NALPGAM warned that the crisis was undermining years of progress achieved through Federal Government policies and investments aimed at deepening LPG penetration and promoting clean cooking energy.

“While millions of Nigerians have embraced cooking gas as a result of the national clean energy transition agenda, it is sad to state that those gains are at risk as households are struggling to refill cylinders, small businesses are folding under rising energy costs, while many families are reverting to firewood and charcoal despite the serious implications for public health, environmental degradation, and deforestation,” it said.

The association further warned that failure to urgently address the crisis could lead to “accelerated food inflation, the collapse of small-scale LPG retail businesses, job losses, reduced investor confidence, and a significant setback to Nigeria’s clean energy and climate commitments”.

NALPGAM called on the Federal Government, the Ministry of Petroleum Resources, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the Nigerian National Petroleum Company Limited, domestic producers, terminal operators, international suppliers, and other stakeholders to take urgent and coordinated steps to stabilise the market before it degenerates further.

The association recommended immediate measures to improve the availability and accessibility of LPG nationwide. It also called for increased domestic LPG allocation to the Nigerian market, transparent distribution of available supply, reduction of bottlenecks in importation and distribution, and interventions to stabilise retail prices.

It requested investment in storage and distribution infrastructure as well as policies that support affordability and sustainability in the sector. “We cannot stand by and watch millions of Nigerian families suffer in silence while access to clean cooking energy becomes increasingly difficult and unaffordable.

“For years, the government and industry operators have worked to move Nigerians away from unsafe fuels. Those gains are now under serious threat. “Households cannot refill cylinders, small businesses are struggling to survive, and vulnerable households are returning to firewood and charcoal with dire health and environmental consequences.

“We therefore make a passionate and patriotic appeal to the Federal Government for urgent intervention to stabilise supply and pricing. NALPGAM is ready to collaborate to have lasting solutions, but decisive action is needed now,” the statement said.

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Some butchers in Dutse, Jigawa State, have expressed concern over rising transportation fares, saying the development may affect the cost of slaughter and meat processing services during the Eid-el-Kabir celebration.

They said the trend would negatively affect the operations of slaughter slabs and mobile services.

A cross-section of the butchers stated this in separate interviews with the News Agency of Nigeria on Thursday in Dutse.

A NAN check at the Dutse abattoir showed that the cost of animal slaughter and meat processing had increased by about 200 per cent compared to the previous festive season.

The slaughter fee for a ram ranges from N5,000 and above per head, while a bull costs N20,000 and above, depending on its size.

Meat processing, including packaging and roasting, previously cost about N5,000 for goats and N10,000 for rams per head, respectively.

The Head Butcher, Ado Sakin-Fawa, said they anticipated a significant rise in fees this season due to the increasing cost of transportation.

He said the situation was more favourable during the previous Eid-el-Kabir season, as more families had the financial capacity to afford their services.

Sakin-Fawa said the anticipated increase was largely driven by rising transportation costs across neighbouring communities and markets.

“Transport fares to places such as Sabuwar Kasuwa, Shuwarin and Wudil have increased significantly in recent months.

“As a result, butchers and meat processors now spend more on movement and other operational expenses,” he said.

Sakin-Fawa added that butchers providing home slaughter services might demand higher charges to offset the rising transport costs.

Another butcher, Ahmad Mai-Nama, described the situation as uncertain and economically challenging.

He said that although there were no fixed charges for slaughter and other services, prevailing economic realities would push costs higher.

“This year, charges may largely depend on the prevailing economic situation and the cost of transportation,” he said.

He lamented that business activities had remained low ahead of the festive period.

Also, Babannan Abdullahi, a dried meat processor, projected an increase in processing charges due to the soaring price of petrol and other ingredients.

Abdullahi Awaisu, a suya spot operator, said charges for the services had increased due to the inflationary trend in the country.

He, however, expressed optimism that the economic situation would improve and enable them to enjoy better patronage.

(NAN)

The Nigerian National Petroleum Company Limited is considering an NLNG-style equity partnership that could hand Chinese investors a majority stake of about 51 per cent in the Port Harcourt and Warri refineries as part of a broader plan to rehabilitate and commercially reposition the facilities.

Details of the arrangement emerged after NNPC signed a Memorandum of Understanding with Chinese firms Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co., Ltd. for what the national oil company described as a “potential technical equity partnership”.

The MoU was signed in Jiaxing City, China, on April 30, 2026, by the Group Chief Executive Officer of NNPC Ltd, Bayo Ojulari; Chairman of Sanjiang Chemical Company, Guan Jianzhong; and Chairman of Xinganchen Industrial Park Operation and Management Co. Ltd, Bill Bi.

Findings by The PUNCH on Thursday showed that the proposed framework goes beyond conventional refinery rehabilitation contracts and may involve long-term equity participation by the Chinese partners in both refining assets.

Sources at the national oil firm privy to the MoU told our correspondent that the proposed partnership is being structured around an “NLNG-type model” featuring equity participation, joint governance arrangements, and long-term operational involvement.

They disclosed that the structure may be similar to NLNG’s, where investors own 51 per cent equity, participate in governance, and share operational responsibilities over the long term. Under the proposed collaboration, the Chinese firms are expected to support the completion of outstanding work at the Port Harcourt and Warri refineries.

The agreement also covers operations and maintenance services aimed at achieving what NNPC described as “best-in-class, sustainable performance”. According to findings, the planned upgrades would also expand refinery capacity, improve profitability, and raise fuel production standards to cleaner specifications.

The parties are equally exploring expansion into petrochemicals and gas-based industrial projects through the development of co-located industrial hubs around the refinery complexes.

“The scope includes capacity expansion, yield optimisation, petrochemical integration, and compliance with clean fuel standards and exploration of gas-based industrial projects in Nigeria,” an NNPC official said, pleading anonymity because he was not authorised to speak to the press.

Speaking after the signing ceremony, Ojulari described the agreement as a major milestone after more than six months of engagement between NNPC and the Chinese firms. “All parties recognise mutually beneficial opportunities for the development and long-term sustainable profitability of NNPC’s refining assets in Nigeria and the collective weight required for success,” he said.

Ojulari added that the agreement marked an important stage in identifying technical equity partners capable of restarting and expanding the refineries. “The MoU is a significant step on the journey towards identifying potential technical equity partner(s) to restart and expand NNPC’s refineries and to explore opportunities in co-located petrochemical and gas-based industries,” he stated.

Our correspondent gathered that the MoU reflects only the parties’ intention to continue discussions in good faith, with definitive agreements still subject to regulatory and customary approvals.

Further findings showed that the implementation process would begin with technical, operational, financial, commercial, and legal due diligence before binding agreements are executed.

“The agreement is a non-binding framework, meaning it is not yet a final commercial contract. Instead, it establishes a basis for cooperation and creates a pathway toward future definitive agreements. The partnership is expected to cover four major operational areas: Sanjiang/Xinqianchen would participate in completing outstanding engineering, procurement, and construction work at the two facilities. The focus is on improving refinery reliability, safety, and efficiency to ‘best-in-class’ standards.

“Instead of a conventional contractor arrangement, the MoU suggests possible equity participation using an NLNG-type model of joint governance arrangements and a long-term partnership framework. This implies Sanjiang/Xinqianchen may take ownership or operational participation rather than acting solely as an EPC contractor. However, everything is subject to agreement.

“Also, there is a possible transformation of the refineries into commercially driven industrial assets like petrochemical and gas,” the source said.

Analysts said the shift towards an equity partnership structure may signal growing concerns within NNPC over the sustainability of previous refinery rehabilitation arrangements.

Speaking in an interview with our correspondent about the MoU, the Executive Secretary of the Major Energies Marketers Association of Nigeria, Clement Isong, said bringing in technically competent partners with equity stakes would ensure efficiency and sustainability.

On the structure of the deal, Isong stressed that the key difference is that the Chinese partners are taking equity in the assets as part owners and would want the refinery to work so they get returns on their investments.

“This is an innovative way of getting the assets to work in an efficient and sustainable way. The challenge we knew was that NNPC did not have the internal competence or capacity to run those refineries efficiently. Now, they have brought a third party, and the key difference is that the third party they have brought is taking equity. He’s a part-owner of the refinery and so would want the refinery to work so he can get returns on his investment,” Isong said.

He described the model as innovative, adding that every Nigerian would be happy if the facilities worked again. He said the NNPC did not have the internal competence and capacity to run the refineries without a technical partner.

The Port Harcourt refinery rehabilitation project was earlier awarded to Italian engineering firm Maire Tecnimont, while separate rehabilitation efforts had also commenced at the Warri refinery.

The proposed arrangement could also deepen Chinese participation in Nigeria’s downstream petroleum and gas industries if discussions progress into binding commercial agreements.

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