Dangote Threatens Direct Sales as Cooking Gas Prices Set to Crash
In a bold move that could reshape Nigeria’s energy market, Africa’s richest man, Alhaji Aliko Dangote, has announced plans to crash the price of cooking gas and sell directly to consumers if distributors fail to pass on expected price reductions.
During a tour of the Dangote Refinery in Lagos on Tuesday, July 16, 2025, the business mogul revealed that the facility is already producing 22,000 tonnes of liquefied petroleum gas (LPG) per day, with the capacity to saturate the domestic market.
“We are not here to watch Nigerians suffer. If the current distributors are not willing to align with our price reduction efforts, we will go directly and sell cooking gas to Nigerians,” Dangote declared.
Gas Prices Poised to Drop
Nigerians currently pay between ₦1,000 and ₦1,300 per kilogram for cooking gas, a price that has forced many households to resort to cheaper but harmful alternatives like firewood and charcoal.
With Dangote’s refinery now actively producing LPG in large volumes, the move is expected to force a significant drop in market prices, especially as competition intensifies.
Depot owners have already begun adjusting their prices, with some slashing rates from ₦895/kg to around ₦870/kg, ahead of the anticipated wave of direct-to-market supply.
Resistance from Distributors
However, the development has rattled many LPG marketers who fear being pushed out of the supply chain. Industry players have raised concerns that Dangote’s dominance could lead to a monopoly, potentially sidelining thousands of smaller distributors and agents across the country.
But Dangote insists the goal is not monopolization, but rather affordable, clean energy for everyday Nigerians.
“We want to make sure Nigerians have access to affordable gas. If distributors refuse to cooperate, we’ll sell directly and ensure the people benefit,” he said.
Why It Matters
Millions of homes rely on cooking gas, yet prices have remained volatile.
Dangote’s entry could democratize access and bring relief to struggling families.
This move also aligns with national and global calls for cleaner energy adoption.
While some stakeholders remain cautious, many Nigerians are optimistic that Dangote’s direct intervention could force a long-overdue correction in the pricing of domestic gas.
thewatch.ng will continue to monitor this developing story and provide updates on potential price changes, regulatory responses, and consumer impact.
