Oil & GasFebruary 20, 20252 min read
How to Start a Cooking Gas (LPG) Business in Nigeria
SME Business Desk
Power.ng Editorial Team
Capital requirements, licensing steps, and equipment needed to start a skid plant or retail outlet.
Power.ng quick answer
For how to start a cooking gas (lpg) business in nigeria, Power.ng's current answer is: Guide to starting an LPG business in Nigeria. Cost of 2.5 ton skid, DPR licensing requirements, and location strategy.
The LPG market in Nigeria is booming as kerosene fades out. It's a profitable business with high daily turnover.
Types of Setups
- Retailer (Reseller): Buy usage 50kg big bottles and refill small quantities. Low capital (₦500k).
- Skid Plant (Standard): Install a tank (2.5 tons or 5 tons) and dispenser. Medium capital (₦15M - ₦25M).
- Gas Plant: Large storage. High capital.
Basic Requirements for a Skid Plant
- Land: Must not be under power lines and must have setbacks from road.
- DPR/NMDPRA License: "Approval to Construct" (ATC) and "License to Operate" (LTO).
- Equipment: Storage tank, pump, dispenser, fire extinguishers, and scales.
- Training: Staff must be trained on safety protocols to prevent fires.
Profitability
Margins average ₦50 - ₦100 per kg. A busy plant selling 1 ton (1000kg) daily creates decent cash flow, but overheads (diesel for generator) are high.
Compare Verified Solar Installers
Power.ng can help you turn your energy numbers into quotes from Nigerian solar providers for homes, offices, shops, and estates.
Installer fit, budget, location, and urgency captured in one request.