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Let’s not overhype it. Some people are cashing out quietly from cooking gas business in Nigeria. Some are regretting ever entering.
So the business itself is not the issue.
How people enter is the issue. Cooking gas business in Nigeria is not dead. But in today’s Nigeria, this business is not for everybody. Some people are making steady money. Some are struggling badly.
So the big question is: Is cooking gas business still worth it, or is it a bad investment?
This is where many people get confused. From one-room self-contain to big restaurants, people buy gas daily. Even when price goes up, people complain but still buy. However, startup cost is higher now. Tanks, pumps, meters, and safety items are more expensive. Dollar rate and steel prices have affected everything. You can’t start cheap like before.
Also, competition has increased. Gas plants are everywhere now - such as estates, roadside, and new layouts. If your location is wrong, customers will pass you.
The truth Nigerians don’t like to admit is, cooking gas is not luxury as people usually puts it (although I understand that prices have increased outrageously through past years). For a fact, cooking gas is not seasonal. People don’t stop cooking because price is high. But that doesn’t mean every gas business makes money. That’s the part many people ignore.
Are you considering venturing into the LPG gas plant business or already running one? Don't let unexpected losses derail your success. GET YOUR COPY NOW!!!
Where the Money Really Is (And Where It Is Not)
Here is where it makes sense, that is if you want it to - cooking gas business works well when:
1. You are close to where people live
2. Customers can access you easily. Avoid closed areas, bad roads, and unsafe locations.
3. You refill correct and accurate amount purchased by customers - no cheating. That means, you dispenser pump is not altered to short sell. Cooking gas business is all about trust. If customers trust your refill/meter, irrespective of the price, they will still patronize you.
4. You don’t stress people with pricing. If you overprice, be sure that customers will buy from gas plants with #50 naira difference, after confirming from 2 or 3 more gas plants for recent prices. Yes, number 3 tips above can save you, but some customers are quite money conscious.
5. Estate gas shops, busy neighborhoods, and tenant-heavy areas still move gas daily.
Now that I have explained how you can make it right going into LPG cooking gas business, next is how and why people fail in the business or struggle. Cooking gas business fails and struggles when:
1. Location is hidden or far
2. Too many gas shops or gas plants are already there
3. Supply is not steady
4. Safety issues scare customers away
5. Once customers lose trust, they don’t come back.
The Question Is Not “Is It Profitable?”
The real question is: Can you sell gas every single day?
If you can sell daily, you’ll survive price changes.
If you can’t, profit figures won’t save you.
Small Setup vs Big Setup (Big Difference)
Many people think “If small is working, big will work better.” That mindset has buried many investors. Because most of the time, you may need a business plan, a 3 years or 5 years business plan and proberly feasibility report. Upgrading means more investment (money), which means, your daily sales should surpass previous numbers per previous size so to maintain profits and ROI. Okay okay, let explain this - For example, you sell up to 200kg on a 5tons skid plant per day....once you upgrade to 10tons, you should be able to surpass that daily sales to meet up.
Why? Because small setups are easier to manage, recover faster, and allow mistakes without killing the business. However, not to complicate my point to you - big setups need strong supply. Need experience. Need serious supervision.
Starting small is not weakness. It’s wisdom.
Why Some People Call It a Bad Investment
I have heard people says something like "Cooking gas business is now saturated", More competitive, and full of losses and profits are not sustainable".
While these are somehow true and not true at the same time, let's consider why and how they entered the business in the first place.
If you check, some entered because someone told them to (I'm not saying that is bad), without proper guidance, and no experience - less knowledge. Some people entered the LPG cooking gas business only because they see friends or colleagues, or heard people making profits from it without trying to find out about the in and out of the business.
They entered with wrong expectations, borrowed money, no supply plan, and no patience. Gas business doesn’t like pressure. Once you start forcing it, it pushes back.
Why Some People Stay Quiet and Keep Earning
Lol, they want to chop alone. But seriously, they chose the right location. And also, they know or have learned how to control costs. If you know how to properly calculate costs - differentiating cost of supply, repairs and maintenance, expenses; you probably may have solved 58% of the business problems.
Also, let's not forget taking supply seriously. No late supplies. They that succeeded in the cooking gas business also try as much to avoid untrustworthy and unreliable suppliers.
I won't forget to mention, keeping good staffs. An unhappy, underpaid, not respected, not appreciated - will surely take from you or treat your business with no seriousness or unprofessional. Your noise won't change anything including your profits. They just refill cylinders daily, but business won't go forward.
Are you considering venturing into the LPG gas plant business or already running one? Don't let unexpected losses derail your success. GET YOUR COPY NOW!!!
So… Good or Bad Investment?
The truth is, cooking gas business in Nigeria is good investment for patient people. At least, that's what is has become now. And bad investment for impatient people. That’s the honest truth.
Final Advice
If you’re thinking of entering study your area. Start what you can control. Learn before going into the business, and learn and research before expanding. Cooking gas business rewards consistency, knowledge, understanding - not excitement or ignorance.
Frequently Asked Questions (FAQs)
1. Is cooking gas business still profitable in Nigeria in 2026?
- Yes, it can still be profitable in 2026, but only if gas is selling daily. Profit comes from steady sales, not from hype or big setup.
2. Why do some people fail in the cooking gas business?
- Most failures come from poor location, bad pricing, unsafe operations, and lack of steady gas supply - not because the business itself is bad.
3. Is cooking gas business risky?
- It has risks, especially safety and price changes. But when safety rules are followed and supply is stable, the risk reduces a lot.
4. Do I need a big gas plant to make money?
- No. Many people make steady income from small and medium gas setups. Starting small helps you learn and recover faster.
5. How important is location in gas business?
- Location is very important. If people cannot see you or access you easily, they won’t buy - even if your price is good.
6. Can price increase kill the business?
- No. People still cook even when gas price goes up. What affects business more is low sales, not high price.
7. Is cooking gas better than fuel or kerosene business?
- Cooking gas has more regular customers and is cleaner. But it requires more safety awareness and discipline than fuel sales.
8. How long does it take to start seeing profit?
- For small setups, some people start seeing steady returns within months, especially if sales are daily and expenses are controlled.
9. Is it okay to start with borrowed money?
- It is risky. Gas business needs patience. Starting with borrowed funds puts pressure on the business and increases the chance of mistakes.
10. Who should not go into cooking gas business?
- People looking for quick money, fast expansion, or stress-free business should avoid it. Cooking gas rewards consistency, not impatience.
Are you considering venturing into the LPG gas plant business or already running one? Don't let unexpected losses derail your success. GET YOUR COPY NOW!!!