FG mobilises EFCC, DSS, police to tackle LPG hoarding, diversion

Precious Anga

Lagos — The Federal Government has launched a coordinated crackdown on hoarding, diversion and other market distortions affecting Nigeria’s liquefied petroleum gas (LPG) sector as part of efforts to curb rising cooking gas prices and improve product availability nationwide.

To address the growing concerns, the Ministry of Petroleum Resources convened an emergency stakeholders’ meeting involving the Department of State Services (DSS), the Economic and Financial Crimes Commission (EFCC), the Nigeria Police Force, regulators, producers, marketers, terminal operators and other key players in the LPG value chain.

The engagement, coordinated by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), focused on identifying the factors driving recent increases in cooking gas prices and developing practical measures to stabilise the market.

Speaking at the meeting, the Permanent Secretary of the Ministry of Petroleum Resources, Patience Oyekunle, described LPG as a critical energy source for millions of Nigerian households and an important pillar of the country’s energy transition strategy. She warned that rising cooking gas prices were placing additional pressure on household incomes and increasing the cost of living across the country.

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said President Bola Tinubu had expressed concern over the persistent increase in LPG prices and directed relevant agencies to take urgent action. According to him, expanding supply alone would not solve the problem unless it is accompanied by efficient logistics, stronger infrastructure and transparent pricing mechanisms.

The Authority Chief Executive of NMDPRA, Rabiu Umar, acknowledged that high landing costs remain a major contributor to elevated LPG prices but expressed confidence that ongoing interventions across the supply chain would begin to ease market pressures in the coming weeks. He said the regulator is working closely with producers and marketers to boost domestic supply and improve market oversight.

Presenting an industry assessment, NMDPRA’s Executive Director for Distribution Systems, Storage and Retailing Infrastructure, Ogbugo Ukoha, identified inadequate infrastructure, domestic supply shortages, logistics constraints, market distortions and global supply disruptions as the key drivers of current pricing challenges.

Despite the difficulties, the regulator reported signs of improvement in the market. National LPG supply sufficiency has increased from 11 days to 22 days, while average daily supply rose from 4,262 metric tonnes in May 2026 to 5,040 metric tonnes in June 2026 following engagements with producers, suppliers and terminal operators.

Stakeholders at the meeting pledged support for government efforts but highlighted persistent challenges affecting storage capacity, transportation networks, product distribution and overall market efficiency. They called for stronger collaboration between regulators and industry players to address structural bottlenecks.

At the end of the meeting, participants agreed on a range of measures, including intensified market surveillance, stricter enforcement against hoarding and diversion, expansion of storage and distribution facilities, increased domestic production, deployment of enhanced product-tracking systems and improved access to market intelligence.

Closing the session, Ekpo directed stakeholders to immediately implement agreed measures, stressing that the success of the intervention would be measured by improved product availability, more efficient distribution and a reduction in cooking gas price pressures across the country.