Nigeria’s domestic refineries and gas processing facilities have achieved a major breakthrough in energy independence, supplying 87% of the country’s cooking gas demand in 2025, according to data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The Dangote Petroleum Refinery and Nigeria LNG Limited spearheaded this transformation, which has dramatically reduced the nation’s reliance on imported Liquefied Petroleum Gas (LPG). This represents a remarkable turnaround from 2023, when imports constituted nearly half of total consumption at 47%.
Vanguard’s analysis reveals that out of 52,900 metric tonnes of cooking gas delivered to Nigerian markets in 2025, local sources provided 45,800 metric tonnes, while imports accounted for just 7,100 metric tonnes—a mere 13% of total supply.
The surge in domestic production has strengthened Nigeria’s foreign exchange position by reducing import dependency and has improved supply reliability as household consumption continues climbing. The National Bureau of Statistics confirmed this trend, attributing the growth to expanded refining infrastructure and government policies promoting local production.
Monthly supply data shows consistent output throughout 2025, with deliveries ranging from 3,200 metric tonnes in January to peaks of 4,500 metric tonnes in July. The Dangote Refinery, NLNG, and other processors maintained steady production across all twelve months.
Professor Wumi Iledare, a petroleum economist, emphasized the broader economic implications: “The 2025 milestone provides empirical validation that value creation occurs at the point of processing, not merely extraction. This demonstrates that domestic petroleum processing delivers superior outcomes in value retention, foreign exchange stability, employment, and energy security compared to exporting crude and importing refined products.”
Mazi Colman Obasi, National President of the Oil and Gas Services Providers Association of Nigeria, welcomed the development, stating it would generate significant multiplier effects in the domestic economy while bolstering energy security.
Industry experts stress that while increased production is promising, improvements in distribution networks and storage infrastructure remain essential to ensure competitive pricing and broader household access nationwide.
With additional capacity expected from existing and planned facilities, stakeholders anticipate domestic suppliers could eventually eliminate import dependency entirely, further strengthening Nigeria’s energy security framework.
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