NMDPRA Issues Import Permits to Bridge 165,000-Metric-Tonnes LPG Supply Gap

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The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced plans to issue import permits to bridge a 165,000 metric tonnes Liquefied Petroleum Gas (LPG) supply gap in the third quarter of 2026. This comes as the country grapples with rising LPG prices, which have been attributed to inadequate domestic supply, low imports, profiteering, and distribution challenges.

Rabiu Umar, the Chief Executive of NMDPRA, made the disclosure on Monday in Abuja during an emergency stakeholders' meeting on rising LPG prices convened by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo. Umar described imports as the immediate solution to the LPG supply shortfall, saying the measure forms part of the authority's immediate and medium-term strategies to boost the supply of cooking gas and stabilise prices nationwide.

The Authority Chief Executive said the regulator had engaged terminal operators, domestic producers, and other suppliers, leading to an improvement in LPG supply sufficiency from 11 days to 22 days, while efforts were ongoing to address profiteering by marketers. Profiteering by marketers is being addressed, he said.

NMDPRA will deploy technology to track product movement, develop a tariff regulatory framework to promote fair pricing, and leverage expanded private sector investments in LPG storage and cylinder manufacturing to strengthen nationwide supply. The authority will also support the expansion of LPG storage, terminal, and distribution infrastructure, accelerate domestic gas processing projects, prioritise local LPG supply, and facilitate access to foreign exchange for critical imports where necessary.

Mr Ogbugo Ukoha, Executive Director, Distribution Systems, Storage, and Retail Infrastructure, NMDPRA, attributed the recent surge in LPG prices to inadequate domestic supply, low imports, profiteering, and distribution challenges. He decried the fact that in spite of a directive requiring domestic producers to prioritise local supply, some volume continued to be exported.

However, Ukoha said regulatory interventions had improved LPG supply sufficiency from 11 days to 22 days, with average daily supply rising to 5,040 metric tonnes (mt) as of June 19 from 4,262 mt in May, following the arrival of four import cargoes totalling about 16,000 metric tonnes. He, however, warned that marketers would no longer be allowed to profiteer as supply improves.

The NMDPRA said it had commenced intensified monitoring and enforcement across the LPG supply chain to curb diversion and other market abuses. The authority will also work to return prices to levels recorded about a year ago, ensure locally produced LPG remains cheaper than imported volumes, and support infrastructure investments through the Midstream and Downstream Gas Infrastructure Fund (MDGIF).

The NMDPRA has announced plans to inject 50 metric tonnes of LPG per day into the domestic market from Anoh Gas in July 2026, while efforts are underway to channel more locally produced LPG into the domestic market, including volumes currently exported.

In 2022, NMDPRA was established to regulate the midstream and downstream sectors of the Nigerian oil and gas industry. Its establishment was a major reform initiative aimed at improving efficiency, transparency, and accountability in the sector.

The NMDPRA has been working tirelessly to address the challenges in the LPG market, including supply disruptions, high prices, and profiteering by marketers.

The recent surge in LPG prices has been attributed to a combination of factors, including inadequate domestic supply, low imports, profiteering, and distribution challenges. The NMDPRA has been working to address these challenges through various measures, including improving supply sufficiency, enforcing fair pricing, and leveraging private sector investments.

The NMDPRA will work to return prices to levels recorded about a year ago, ensure locally produced LPG remains cheaper than imported volumes, and support infrastructure investments through the Midstream and Downstream Gas Infrastructure Fund (MDGIF).

The NMDPRA's plans to issue import permits and increase domestic production will help bridge the supply gap and reduce prices. The move is seen as a major step in stabilizing the LPG market and ensuring a reliable supply of cooking gas to households and industries.

The NMDPRA will also work to improve the efficiency of the LPG supply chain, including streamlining distribution and reducing losses. The authority will also engage with stakeholders, including terminal operators, domestic producers, and other suppliers, to address technical and logistics constraints.

The NMDPRA will also work to improve the regulatory framework for LPG, including developing a tariff regulatory framework to promote fair pricing and leveraging expanded private sector investments in LPG storage and cylinder manufacturing to strengthen nationwide supply.

The NMDPRA will support the expansion of LPG storage, terminal, and distribution infrastructure, accelerate domestic gas processing projects, prioritise local LPG supply, and facilitate access to foreign exchange for critical imports where necessary.

The NMDPRA will also work to improve the efficiency of the LPG supply chain, including streamlining distribution and reducing losses. The authority will also engage with stakeholders, including terminal operators, domestic producers, and other suppliers, to address technical and logistics constraints.