Why the FG Should Subsidize Cooking Gas

Yesterday (Monday), I refilled a 12.5kg cooking gas cylinder for N21,300 from LUBGAS, a major distributor in Gwarinpa,  Abuja, translating to approximately N1,700 per kilogram. In December 2022, before the current administration came into office, the same quantity cost about N10,000, or roughly N800 per kilogram. In just a few years, the cost of cooking gas has more than doubled, placing a basic household necessity beyond the reach of millions of Nigerians.

I made a post of this experience on Facebook and one of my friends, like many others out there, argued implicitly that government should not interfere with market forces. He holds the view that the federal government should allow demand and supply to determine prices. However, this argument ignores a fundamental reality: governments all over the world influence markets when doing so serves the public interest. Through taxes, subsidies, regulations, tariffs, monetary policies and public investments, governments routinely shape economic outcomes. The real question is not whether government can influence market forces, but whether it should do so in circumstances where the welfare of citizens and the national interest are at stake.

The sharp increase in cooking gas or liquified petroleum gas (LPG) prices, presents precisely such a circumstance. As LPG becomes more expensive, many households are forced to abandon it and return to firewood and charcoal. While these fuels may appear cheaper in the short term, their widespread use carries enormous long-term costs for the nation.

Firstly, increased reliance on firewood and charcoal accelerates deforestation. Nigeria already faces serious environmental challenges, including desertification, soil degradation and loss of forest cover. Every household that abandons cooking gas for wood fuel contributes to greater pressure on the country’s forests. The resulting environmental damage threatens agriculture, water resources, biodiversity and climate resilience.

Secondly, the return to traditional cooking fuels creates significant public health problems. Smoke from firewood and charcoal is associated with respiratory illnesses, especially among women and children who spend the most time around cooking areas. The health burden generated by these illnesses ultimately translates into higher healthcare costs for families and government alike.

Gradual desertification in Africa is having a far-reaching impact on human health, food security and economic activity Credit: TREEAID / Flicker

Households switching to electric cooking instead, may sound like a good measure to limit environmental degradation. However, this is not a realistic option for many Nigerians. Electricity tariffs have risen astronomically in recent years while power supply remains unreliable in many parts of the country. For millions of households, electric cooking at 0.0044 kwh/Naira is neither affordable nor dependable. Consequently, rising cooking gas prices often push families toward firewood and charcoal rather than cleaner energy alternatives.

This raises a broader policy concern. If the government’s objective is to promote cleaner energy use, then electricity and cooking gas cannot both become unaffordable simultaneously. When the two most practical clean-energy options are priced beyond the reach of ordinary citizens, households are inevitably driven back to traditional fuels, undermining national environmental, health and development goals.

Subsidizing cooking gas should therefore not be viewed merely as a consumer welfare measure. It is an investment in environmental protection, public health and sustainable development. The economic costs of deforestation, environmental degradation, reduced agricultural productivity and preventable illnesses may ultimately exceed the cost of a targeted subsidy program designed to keep cooking gas affordable.

Furthermore, the essence of government extends beyond maintaining law and order. The Constitution places a responsibility on government to promote the security and welfare of the people. Public policy cannot be guided solely by the mechanics of demand and supply. Economic decisions must also take into account social welfare, environmental sustainability and the quality of life of citizens.

A well-designed cooking gas subsidy does not have to be wasteful or permanent. Government can target low-income households, support domestic LPG production and distribution, reduce taxes and levies on cooking gas, and provide incentives that lower retail prices. Such measures would encourage cleaner energy use while delivering broad economic, environmental and social benefits.

Ultimately, life is not governed solely by market forces. The purpose of government is to ensure that economic policies serve the people and advance the national interest. Given the dramatic increase in cooking gas prices, the link between expensive LPG and deforestation, the high cost and unreliability of electricity, and the government’s obligation to promote the welfare of its citizens, there is a compelling case for Nigeria to subsidize cooking gas. Doing so would protect the environment, improve public health, preserve forests, and help millions of households maintain access to clean and modern cooking energy.

Hot this week

What They Never Told You: Ayatollah Khomeini Was a Great Jurist, Not a Fanatic

The West gave Iran a name — theocracy — and buried the reality beneath it. They never told you that Khomeini spent decades mastering one of the most rigorous legal traditions in human history, or that he built a constitutional republic ratified by 98 percent of the Iranian people in a free referendum. A nation of fanatics can be bombed with a clear conscience. A constitutional republic of 93 million people, founded by a supremely gifted jurist, is harder to dispose of.

‘We Won’t Be Silenced’: ADC Rejects Court-Ordered Deregistration

Abdullahi said: We did not expect the level of judicial rascality that was demonstrated. When a Court of Appeal says stay proceedings until October 27 and a lower court goes ahead to deliver judgment on the same matter, it is bizarre and dangerous."

Sheikh Gumi and the Case for Dialogue

It is against this background that I offer my views on the issues of banditry and kidnappings, particularly in northern Nigeria. My perspective is informed by knowledge acquired during my graduate studies at the Fletcher School of Law and Diplomacy, Tufts University, in the United States. Two courses, in particular, shaped my understanding of conflicts and their resolution. The first was International Security Studies, taught by Professor Richard Shultz, a consultant to the Pentagon. The second was International Negotiation, taught by Professor Diana Chigas, a member of the team that helped negotiate the end of apartheid in South Africa.

June 12: Democracy’s Sacred Mandate and Nigeria’s Unfinished Journey

Democracy has delivered some notable gains. The country has witnessed peaceful transfers of power, expanded political participation, a more vibrant media landscape, and greater civic engagement. These achievements should not be dismissed. They are evidence that democratic governance, despite its imperfections, remains preferable to military rule. However, democracy cannot survive on political rituals alone. For millions of Nigerians battling insecurity, unemployment, poverty, inflation, and inadequate infrastructure, democracy must mean more than periodic elections.

Atiku Picks Amaechi as Running Mate in Strategic Move

In a move that could significantly reshape Nigeria's political landscape ahead of the next presidential election, the presidential candidate of the African Democratic Congress (ADC), Alhaji Atiku Abubakar, has nominated former Minister of Transportation, Chief Chibuike Rotimi Amaechi, as his running mate.

Topics

What They Never Told You: Ayatollah Khomeini Was a Great Jurist, Not a Fanatic

The West gave Iran a name — theocracy — and buried the reality beneath it. They never told you that Khomeini spent decades mastering one of the most rigorous legal traditions in human history, or that he built a constitutional republic ratified by 98 percent of the Iranian people in a free referendum. A nation of fanatics can be bombed with a clear conscience. A constitutional republic of 93 million people, founded by a supremely gifted jurist, is harder to dispose of.

‘We Won’t Be Silenced’: ADC Rejects Court-Ordered Deregistration

Abdullahi said: We did not expect the level of judicial rascality that was demonstrated. When a Court of Appeal says stay proceedings until October 27 and a lower court goes ahead to deliver judgment on the same matter, it is bizarre and dangerous."

Sheikh Gumi and the Case for Dialogue

It is against this background that I offer my views on the issues of banditry and kidnappings, particularly in northern Nigeria. My perspective is informed by knowledge acquired during my graduate studies at the Fletcher School of Law and Diplomacy, Tufts University, in the United States. Two courses, in particular, shaped my understanding of conflicts and their resolution. The first was International Security Studies, taught by Professor Richard Shultz, a consultant to the Pentagon. The second was International Negotiation, taught by Professor Diana Chigas, a member of the team that helped negotiate the end of apartheid in South Africa.

June 12: Democracy’s Sacred Mandate and Nigeria’s Unfinished Journey

Democracy has delivered some notable gains. The country has witnessed peaceful transfers of power, expanded political participation, a more vibrant media landscape, and greater civic engagement. These achievements should not be dismissed. They are evidence that democratic governance, despite its imperfections, remains preferable to military rule. However, democracy cannot survive on political rituals alone. For millions of Nigerians battling insecurity, unemployment, poverty, inflation, and inadequate infrastructure, democracy must mean more than periodic elections.

Atiku Picks Amaechi as Running Mate in Strategic Move

In a move that could significantly reshape Nigeria's political landscape ahead of the next presidential election, the presidential candidate of the African Democratic Congress (ADC), Alhaji Atiku Abubakar, has nominated former Minister of Transportation, Chief Chibuike Rotimi Amaechi, as his running mate.

Three Killed as Gunmen Raid Kogi School

The Kogi State Police Command said the attackers arrived in large numbers, travelling on about 40 motorcycles, and targeted the school and nearby surroundings in what authorities believe may have been an attempt to carry out kidnappings.

Kwankwaso Weighs NDC Exit as Candidate Purge Deepens Party Crisis

Amid the growing controversy, there is a call urging Kwankwaso to leave the NDC if he believes he is being unfairly treated by the party leadership. Supporters of Kwankwaso say he should pursue his political ambitions on another platform if he feels constrained, marginalized, or denied a fair role within the party.

Sheikh Gumi: An Asset Nigeria Should Not Ignore

For many years, Gumi has attracted criticism because of his contacts with bandits. Some commentators have accused him of being too sympathetic to them. Others have questioned why he meets with them in their forest hideouts. But instead of seeing him as part of the problem, Nigerians should ask whether he can be part of the solution.
spot_img

Related Articles

Popular Categories

spot_imgspot_img