This topic attracts both investors and entrepreneurs searching “how profitable is cooking gas business in Nigeria” or “feasibility study for LPG plant”.
Have you ever wondered if starting a cooking gas plant in Nigeria is really worth it? Many people dream about it, but few take the time to understand the numbers, the process, and what it takes to succeed.
So today, let’s walk through it together - step by step, breaking down the real feasibility of running an LPG (Liquefied Petroleum Gas) plant in Nigeria.
Why Cooking Gas Business Makes Sense in Nigeria
Nigeria’s population is growing fast, and so is the need for clean cooking energy. Millions of families are switching from firewood and kerosene to cooking gas, mostly because it’s faster, cleaner, and safer.
But here’s the sad truth, less than 35% of households in Nigeria use cooking gas regularly. This means there’s still a huge untapped market for anyone ready to invest.
Add to that the government’s push for clean energy and the current LPG price drops from local refineries like Dangote, and you can see why investors are paying attention.
What You Need to Start a Cooking Gas Plant
Let’s be practical. A cooking gas plant is not just a plot of land and a tank. You need a combination of technical setup, government permits, and safety equipment.
Here’s a simple list of what your setup might include:
- Land: At least 100ft by 100ft in a well spacious environment.
- Storage Tank: Common sizes are 1.5 tons, 2.5 tons, 3.5tons, 5 tons, 10 tons, or 20 tons.
- Dispensers & Pumps: For refilling customer cylinders.
- Piping, valves, and gas detectors: For safety and controls.
- Office space and staff training: For smooth operation.
Tip: You can start smaller with a 3-ton mini plant or a 350kg skid, 1.5ton, which costs between ₦5 million and ₦10 million - great for beginners.
Profitability: How Much Can You Make?
Let’s be honest, your profit depends on your location, supply cost, and customer base.
But on average:
- A 5-ton plant can refill 400–500 cylinders per week.
- With ₦300 profit per 12.5kg cylinder, that’s ₦120,000–₦150,000 weekly profit.
- That’s roughly ₦480,000–₦600,000 monthly, and within 1–2 years, your capital could be recovered.
So yes, the business is profitable if you run it smartly, maintain safety standards, and ensure consistent supply.
Challenges You Should Expect
No business is perfect. You’ll likely face:
- High startup cost, especially for tanks and DPR fees.
- Government delays in approval.
- Price fluctuations of LPG from depot to retail.
- Power supply for pumps and refilling machines.
But every successful LPG plant owner today started with these same challenges, and pushed through.
Final Thoughts: Is It Worth It?
Absolutely yes, if you plan well, follow safety rules, and market your business.
Cooking gas is the future of clean cooking in Nigeria. With the ongoing energy transition and increased local production, the next 3–5 years will favor early investors.
So, if you’ve been thinking about starting a gas plant, now is the time to begin your feasibility and secure your location before others do.