Hello everyone, it’s your friend Emmanuel again coming through with insights and recent trends in the growing Nigerian LPG market. By now I am sure you are conversant with the LPG market already if you haven’t please read through this link https://www.nairaland.com/3412991/wait-minute-there-more-know

From our experience in building LPG businesses over the last one year, you will agree with me that there has been an upsurge of LPG businesses all around town especially in Lagos, currently there are 63 skid plants in Lagos, 21 in Ogun State, 19 in Ibadan, 16 in Port Harcourt. This amount of mini plants is as a result of the closeness of these states to the distribution centres, Lagos alone currently has 6 depots namely Navgas, Nipco, PPMC, Total, and Forte Oil also KIAKIAGAS is putting final touches to kick-starting her own. Port Harcourt has 2 now, so it makes the distribution of LPG in smaller quantities a little easier because of the nearness of these states to the depots.

We have had lots of enquiries and requests from people in the Northern Part of Nigeria who wants to set-up LPG businesses especially the mini-plants (because of the initial start-up costs) but in all honestly it is not advisable to kick-start a mini LPG business in the northern part of the country for now because of lack of bulk distribution centres. The cost of logistics from Lagos to the North is relatively between 700k-800k for a 20tons bridger truck and as you know LPG logistics is determined by the distance not quantity, so it will take the same 700-800k to lift a 2.5, 5, 10, 15tons LPG from lagos to the North which doesn’t make economic and business sense.

As an investor you know we see problems as opportunities, there is an obvious opportunity for Bulk LPG distribution business in the Northern Part of Nigeria. This will deepen the market in that region as you can get from lagos and resell to retailers and mini plant owners.
Follow the thread carefully as I update you with investment guide on how to capture the LPG market in the North

For more information call/whatsapp our business development team: 09060325773 or 08085269328 OR send us a mail at: northerngaspreneur@kiakiagas.com