Nigeria LNG Limited (NLNG) has defended its periodic review of Liquefied Petroleum Gas (LPG) off-takers, insisting that the exercise is necessary to ensure the efficient distribution of cooking gas to consumers.
The clarification follows concerns raised by stakeholders in the LPG sector over the recent delisting of some marketers from NLNG’s domestic LPG offtake program, a move critics say has contributed to supply disruptions and rising prices in parts of the market.
Despite the concerns, NLNG maintained that its domestic LPG supply performance remains robust, revealing that it delivered a record 500,000 metric tonnes of cooking gas to the Nigerian market in 2025 and is on track to achieve a similar volume in 2026.
Daily Sun had reported the crisis in the LPG gas sub-sector, where stakeholders linked the worsening cooking gas crisis to regulatory failures, exchange-rate volatility, the delisting of some offtakers by NLNG, and supply disruptions across the LPG value chain.
President of the National Association of Liquefied Petroleum Gas Marketers Association of Nigeria (NALPGAM), Mr. Edu Inyang, attributed recent supply shortages and price increases to disruptions in product availability and market practices that require urgent regulatory attention.
According to Inyang, the situation has been worsened by the removal of some marketers from NLNG’s domestic LPG supply scheme.
He disclosed that no fewer than eight NALPGAM members were recently delisted, reducing the number of active suppliers and tightening product availability across the country.
“Their delisting has reduced the number of active participants in the supply chain and further tightened product availability in the market,” he said.
Responding to the concerns, NLNG reaffirmed its commitment to the domestic LPG market, stressing that it allocates 100 per cent of its LPG production to Nigeria in support of efforts to deepen gas utilization and expand access to cleaner cooking fuel.
The company explained that the periodic review of its relationship with off-takers is a strategic measure aimed at ensuring that only marketers with proven operational capacity, strong market penetration, and the ability to effectively serve consumers remain in the program.
According to NLNG, the assessment process is designed to strengthen the distribution network, eliminate inefficiencies, and ensure that the benefits of its domestic LPG scheme reach end users in a sustainable manner.
“To ensure efficient and effective delivery of this noble objective, NLNG periodically reviews its business relationship with its off-takers.
“This assures that only marketers with proven capacity and requisite market penetration continue to ensure that real value is transmitted directly to the end consumer in a sustained manner,” the company said.
(Champion)
