When Aliko Dangote, the Dangote Refinery owner, announced plans to reduce the price of cooking gas and sell directly to consumers from his new refinery, it was seen by many Nigerians as a welcome move, especially for millions who are constantly looking for less ideal alternatives due to the rising cost of Liquefied Petroleum Gas (LPG).
Currently priced between ₦1,100 and ₦1,300 per kilogramme, cooking gas has become unaffordable for many households. Dangote’s refinery, producing 2,000 tonnes of LPG daily and scaling up to 22,000 tonnes, could ease supply constraints and drive down prices.
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But this apparent relief has triggered resistance from industry players. Some LPG marketers are calling the move monopolistic and warning of unintended consequences.
Their opposition has raised a larger question: are marketers defending the industry or resisting competition that could favour consumers?
EKO HOT BLOG explores the questions.
Monopoly Fears or Market Protectionism?
Godwin Okoduwa, a former chairman of the LPG and Natural Gas Downstream Group at the Lagos Chamber of Commerce and Industry, described Dangote’s direct-to-consumer sales plan as an attempt to monopolise the market. In an interview with Punch, he acknowledged that investors had grown Nigeria’s LPG consumption from 70,000 metric tonnes in 2007 to over 1.3 million tonnes by 2022 through public-private collaboration. According to him, such growth could be undermined if one player dominates distribution.
Okoduwa urged Dangote to work with existing stakeholders instead of pushing them aside. “Yes, he has invested… but he should not be allowed to frustrate the players,” he said, warning against a “zero-sum strategy.” The concern is clear: existing marketers fear being edged out of a maturing sector they helped develop.
But what’s missing from their argument is how protecting old structures at the expense of lower prices benefits consumers.
A Question of Priorities: Market Power or Public Good?
From an objective standpoint, Dangote’s proposal disrupts the market status quo. But disruption isn’t necessarily harmful, especially when it addresses the needs of under-served Nigerians.
Millions still use firewood and kerosene due to cost and limited LPG infrastructure. While marketers claim to support growth, their pushback against price reduction raises questions: are they truly focused on expanding access, or just guarding their turf?
Nigerian Association of LPG Marketers boss Bassey Essien flatly called Dangote’s plan to sell gas directly to consumers “unrealistic,” comparing it to unmet promises around petrol distribution. But for ordinary Nigerians struggling with inflation, even the possibility of cheaper cooking gas is worth exploring.
Ultimately, the fear of monopoly should not be used to block competition, especially not in a sector where consumer needs remain unmet.
If the market is truly open and collaborative as the marketers claim they want it to be, then all players, including Dangote, should be free to compete, provided fair regulations exist. Lower prices, broader access, and cleaner cooking energy should be the shared goal.
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Anything less raises suspicion that the resistance is less about protecting the market and more about preserving profit margins.
Philip Ibitoye is a Special Correspondent with EKO HOT BLOG. Click here to find daily analysis and critical insight on trending issues in Lagos and other parts of Nigeria.
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