Dangote Vows to Cut Cooking Gas Prices, Market Players Sound Alarm Over Monopoly Risk
In a bold move to tackle Nigeria’s rising energy costs, Africa’s richest man, Aliko Dangote, has announced plans to significantly reduce the price of Liquefied Petroleum Gas (LPG) commonly known as cooking gas. Speaking at his Lekki refinery during a visit from Lagos Business School's CGEO Africa, Dangote warned that if existing distributors refuse to lower prices, he may resort to direct-to-consumer sales to force affordability and drive widespread adoption.
“Right now we’re trying to bring down the price and make it cheaper,” said Dangote. “If the distributors are not trying to bring it down, we’ll go directly and sell to the consumers.”
According to the billionaire industrialist, his refinery is already producing 22,000 tonnes of LPG daily, with distribution channels gradually being developed to flood the local market.
While this announcement has sparked hope among millions of Nigerians who rely on expensive LPG or worse, firewood and kerosene not everyone in the sector is celebrating.
Industry Leaders Push Back: "This Is a Monopolistic Move"
Market stakeholders are raising red flags, accusing Dangote of attempting to monopolize Nigeria's growing LPG market, a sector that has evolved significantly through public-private partnerships and grassroots investments.
Godwin Okoduwa, former Chairman of the LPG and Natural Gas Downstream Group at the Lagos Chamber of Commerce and Industry, voiced deep concerns over the potential fallout of Dangote’s approach.
“I think it’s monopolistic,” he said. “This market grew from 70,000 metric tonnes in 2007 to over 1.3 million in 2022 through collaboration, not domination.”
Okoduwa emphasized that true growth would come from expanding the market collaboratively, not by undermining existing players who have contributed to building the LPG ecosystem.
“The LPG market could reach 5 million tonnes annually. Let’s grow the pie, not choke existing players,” he added.
He challenged Dangote to invest in underserved areas like Nigeria’s Northeast, where LPG usage is still minimal, instead of “reaping from already cultivated ground.”
Marketers Question Feasibility of Direct Sales
Also weighing in, Bassey Essien, Executive Secretary of the Nigerian Association of LPG Marketers, labeled Dangote’s proposal as “unrealistic.”
“Has the refinery been able to sell petrol directly to you and me at a cheap rate? No. So how will LPG be any different?”
Essien’s comments reflect widespread skepticism about the feasibility of cutting out distributors in a heavily logistics-dependent sector—where middlemen play a crucial role in storage, transportation, and retail.
The Bigger Picture: Monopoly or Market Savior?
Dangote's move has reignited debate over whether price-slashing tactics by a dominant player truly benefit consumers or threaten a fragile, growing industry. While affordability is a noble goal, the pathway to achieving it must balance competition, fairness, and sustainable market growth.
His vision to eliminate reliance on firewood and kerosene aligns with Nigeria’s climate and health goals but doing so without crippling existing investors will require more than just refinery muscle. It will demand collaboration, infrastructure development, and smart regulation.
What This Means for Nigerians
If executed well, Dangote’s intervention could lower household energy costs, improve public health, and boost Nigeria’s transition to cleaner cooking fuels. But if mishandled, it risks destabilizing an entire industry and discouraging future private investment.
What’s Your Take?
Should Dangote bypass distributors to bring cooking gas prices down?
Is this a necessary disruption or a monopolistic overreach?
Share your thoughts in the comments below.
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