The Nigerian National Petroleum Company Limited (NNPC) is implementing several initiatives to reduce cooking gas prices and enhance domestic supply. A significant step involves the establishment of five mini-liquefied natural gas (LNG) plants in Ajaokuta Local Government Area, Kogi State. Senator Natasha Akpoti-Uduaghan, Chair of the Senate Committee on Local Content, announced that these plants are slated to commence early next year, marking the largest concentration of such facilities in a single Nigerian district.
In addition to infrastructure development, the NNPC is focusing on policy measures to stabilize cooking gas prices. The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, directed the NNPC and other LPG producers to halt the export of domestically produced liquefied petroleum gas (LPG) starting November 1, 2024. This directive aims to increase local availability and affordability of cooking gas.
To further address pricing concerns, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is tasked with developing a domestic LPG pricing framework within 90 days. This framework will index prices to the cost of in-country production, moving away from reliance on international market indices. The goal is to reflect local production costs more accurately and shield consumers from volatile global price fluctuations.
Long-term strategies include the development of facilities for blending, storing, and distributing LPG domestically. These efforts are designed to ensure market stability and sufficient supply, ultimately leading to more affordable cooking gas prices for Nigerian households.
These combined efforts by the NNPC and the Nigerian government demonstrate a commitment to making cooking gas more accessible and affordable, thereby alleviating economic pressures on citizens.
