Stakeholders in the country's energy space have charted a new roadmap for the increased adoption of clean energy for cooking in Nigeria.
The call was sequel to the low utilization of Liquefied Petroleum Gas (LPG) otherwise known as cooking gas amidst drop in the demand for kerosene in the country.
Nigeria's cooking gas per capita consumption remains dismally low--lagging behind many African peers on account of affordability barriers, infrastructural deficits, and cultural preferences for traditional fuels.
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Some 12 million households currently access LPG, representing a marked improvement from few years ago, but the figure is grossly insufficient for over 200 million-population.
Observers said Nigeria needs to promote energy stability through conscious and robust investment in the LPG sector geared towards universal clean cooking access by 2030.
Kunle Stevenson, an energy sector commentator told Daily Trust that to boost LPG consumption, the Nigerian government must adopt a multifaceted strategy blending fiscal incentives, infrastructure development, and public engagement, building on existing initiatives like the 2024 VAT Modification Order that exempts LPG from value-added tax to reduce costs.
According to him, a key step is enforcing the conditional ban on LPG exports, redirecting supplies domestically while investing in blending, storage, and delivery facilities within 12 months, as planned in 2025.
This, he said, aligns with gas marketers' ambitious target of six million-tonnes annual supply, forecasting price reductions through scaled production.
He advised that zero import duties on LPG equipment should be expanded, coupled with performance-based tax incentives for upstream operations to enhance supply chains.
He also stated that regional programs, like the South-East LPG distribution launched in December 2025, emphasize health, economic, and environmental benefits, reaching underserved areas.
He added, "The government could refine its cylinder injection program--initially ambitious at 10 million but scaled back--to focus on subsidized cylinders for low-income households, mirroring successes that granted access to 12 million homes by mid-2025.
"In a broader narrative, encouragement requires education campaigns to shift cultural norms from biomass, partnerships with private sectors for affordability, and integration with initiatives like the Presidential CNG program for diversified clean energy.
"By prioritizing these, the government can catalyze LPG as a bridge to renewables, fostering energy security and reducing reliance on volatile imports."
Dr. Muda Yussuf, Chief Executive Officer, Centre for Promotion of Private Enterprise (CPPE), also told our correspondent that the government must open up the LPG sector for increased investment with a view to enabling more Nigerians to utilize cheap and environmental friendly cooking gas.
Dwindling fortune of Kerosene
Kerosene prices continue to skyrocket (e.g., gallons at N8,695.90), not solely because of LPG substitution but due to broader factors like import dependencies and deregulation.
Industry sources said kerosene scarcity and its escalating costs represent a profound crisis for millions of Nigerians, particularly low-income households who rely on it for cooking and lighting.
They noted that as of late 2025, the average retail price for household kerosene (HHK) has increased dramatically, with a 24% year-on-year increase per liter and a staggering 51% jump per gallon, reaching averages of N8,695.90 per gallon in July 2025.
The price volatility is worsened by widespread scarcity, where the product is often unavailable at filling stations, forcing consumers to turn to black markets where prices can hit N1,000 to N1,100 per liter--or even N2,000 in extreme cases.
Marketers speak
Oil marketers explained that global crude oil prices, exchange rate and deregulation determine prices of kerosene.
Industry sources also told this paper that Nigeria's fuel market deregulation, fully implemented in early 2025, was intended to foster competition, eliminate subsidies, and attract investment by shifting from government-controlled pricing to market-driven dynamics.
Despite these reforms, sources said accessibility remains a glaring issue for most Nigerians, with high prices, supply inconsistencies, and infrastructural bottlenecks rendering fuels like petrol, diesel, and kerosene out of reach for the average citizen.
The removal of subsidies has led to immediate inflationary spikes, reduced national debt burdens in theory, but increased economic hardship in practice, as evidenced by higher costs for transportation, goods, and services, the sources said.
An industry source said, "Several interconnected factors explain this inaccessibility. First, infrastructure gaps--such as inadequate pipelines, storage facilities, and distribution networks--hinder efficient supply chains, leading to regional shortages and reliance on imports despite domestic refining advancements like the Dangote Refinery.
"Second, payment risks in the power and fuel markets, coupled with financing constraints following divestments by international oil companies, deter investments and perpetuate inefficiencies.
"Third, while deregulation has sparked price wars among marketers, benefiting some urban consumers with competitive pricing, it has not translated to broad accessibility due to stalled reforms and a lack of billionaire-level investments to scale operations.
"In narrative terms, this deregulation paradox underscores a failure to pair market liberalization with social safeguards. While it positions Nigeria higher in the value chain through private refineries, the benefits accrue unevenly--favoring elites and urban centers while marginalizing rural populations.
"True accessibility demands targeted interventions like price stabilization funds, expanded rural distribution, and anti-monopoly regulations to ensure deregulation serves the masses, not just the market."
Business turns sour
Daily Trust gathered that players have abandoned investment in kerosene on account of low demand and deregulation which didn't impact on their balance sheet and profit margin.
An industry source said: "For years we have not done any kerosene business. In fact our kerosene tank has been converted to store automotive gas oil (AGO). So many players in the sector have abandoned the business since or was deregulated for majorly two reasons - consumption has been abysmally poor as most people use LPG for cooling; very low demand; cost very high due to deregulation thus reducing interest among the populace.
"The current pump price of kerosene is close to kilogram of cooking gas, thus making it unattractive due to inherent demerits of using kerosene .Most people are not ready to be washing pots every now and then due to smoke associated with kerosene"
Nigeria must act right, responsibly
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Nnimmo Bassey, an environmentalist, said the high cost of cooking gas and kerosene is a clear manifestation of the contradictions in the economy.
He told Daily Trust that the development underscores serious challenges in the management of resources in the country and pushes more Nigerians to rely on more unhealthy energy sources.
Bassey, who stated that the fact that Nigeria is energy insecure is not in question, pointed out that it's also well known that the Nigerian environment has been sacrificed for the sole aim of extracting petrodollars without any care about environmental sustainability.
He added: "The high cost of energy seems to provoke further reckless extraction of the resources, for the enrichment of the exploiters and to the detriment of the poor and the environment.
"Nigeria should invest in clean energy for cooking using appropriate technologies. There are options in this regard. We should not be talking of cooking with kerosene in this age. There should be pointed investment in research institutions to further develop healthy, affordable and accessible options."
Stevenson said LPG's rise is a positive step toward sustainable energy, but its low penetration (compared to countries like South Africa or Egypt) highlights policy gaps.
High kerosene costs amid this transition risk stranding vulnerable populations in energy poverty, he said, adding that a balanced approach should accelerate LPG adoption through subsidies and awareness, while bridging data inconsistencies in LPG statistics to ensure equitable shifts.
He added: "Ultimately, this isn't a zero-sum game; both fuels can coexist in a phased transition, but Nigeria must prioritize inclusive growth to avoid exacerbating inequalities."
