Nigeria’s liquefied petroleum gas (LPG) industry is raising concerns over a new regulatory requirement by the National Agency for Food and Drug Administration and Control (NAFDAC), warning that it could delay imports, disrupt supply chains and worsen challenges facing the country’s cooking gas market.
Industry stakeholders said importers and bulk LPG marketers are now required to obtain NAFDAC certification of their storage and handling facilities before they can secure Form M, the mandatory import documentation issued through Nigeria’s trade portal for the importation of goods.
According to operators, the additional regulatory step could significantly slow the import process, encourage corruption, increase costs and create avoidable bottlenecks in an industry that depends on timely cargo deliveries.
One industry source disclosed that a company is already at risk of losing a cargo of about 12,000 metric tonnes of LPG because it has been unable to obtain the required Form M while awaiting NAFDAC’s inspection and certification of its facilities.
“Without the NAFDAC clearance, the company cannot process its Form M, and without Form M the cargo cannot be imported. The delay could lead to significant commercial losses,” the source said.
Stakeholders argued that introducing another layer of approval into the import process could undermine efforts to ensure uninterrupted LPG supply, especially as Nigeria continues to promote cleaner household cooking fuels.
Under the new arrangement, operators said bulk LPG marketers would be unable to complete import documentation unless NAFDAC first inspects and certifies their facilities as meeting the agency’s regulatory standards.
NAFDAC, however, defended the policy.
Responding to enquiries from Business Standards, the agency’s media consultant, Sayo Akintola, said that LPG is a chemical product that requires strict regulatory oversight due to its safety implications.
According to him, effective regulation is necessary not only to ensure safe handling and storage but also to prevent the product from being diverted for criminal activities, including acts of terrorism.
Officials at the Office of the Minister of State for Gas told Business Standards they were not aware of the new regulatory requirement when contacted for comments.
The development has triggered fresh debate within the industry over regulatory coordination in Nigeria’s oil and gas sector.
Some observers argue that while government continues to promote investment, industrialisation and support for small and medium-sized enterprises (SMEs), introducing additional compliance requirements without adequate stakeholder consultation could discourage investment and increase the cost of doing business.
Industry participants also questioned whether the new requirement duplicates existing regulatory oversight by other government agencies responsible for petroleum operations and import procedures.
Nigeria’s LPG sector has experienced significant growth over the past decade as the government promotes the transition from traditional biomass fuels such as firewood and kerosene to cleaner cooking gas. However, operators say infrastructure gaps, foreign-exchange constraints, logistics challenges, and regulatory hurdles continue to limit faster market expansion.
Industry estimates indicate that Nigeria currently consumes about 1.5 million metric tonnes of LPG annually, a figure stakeholders say remains below the country’s long-term market potential despite its large population and abundant natural gas reserves.
Stakeholders are urging the Federal Government to engage industry participants and relevant regulators to ensure that safety objectives are achieved without creating delays that could affect product availability, investment decisions or consumer prices.
