NNPC partners PayGas to boost access to cheap cooking gas across Nigeria

The Nigeria National Petroleum Corporation (NNPC) Limited has partnered with the South African gas company PayGas to enhance the availability of affordable Liquefied Petroleum Gas (cooking gas) in semi-rural areas across Nigeria.

This is contained in a statement by NNPC on a X’s post on Friday.

According to the statement, NNPC Retail Limited (NRL), a subsidiary of the Nigeria’s oil firm, held a strategic meeting with PayGas and the Oil Sustainability Programme (OSP) from Saudi Arabia on Friday.

NNPC also announced that, following a successful meeting, a Memorandum of Understanding (MoU) was signed on June 21, 2024, by Huub Stokman, Managing Director of NNPC Retail Ltd., and Philippe Hoeblich, CEO and Co-founder of PayGas, to formalize the partnership.

“On Friday, NNPC Retail Limited (NRL) held a strategic business meeting with a delegation from PayGas and the Oil Sustainability Programme (OSP), Saudi Arabia, to enhance the use of affordable clean cooking fuel (LPG) in semi-rural areas across the country.

“The NRL management led the delegation on a site inspection of proposed locations for Micro-Filling plants in various semi-rural areas.

“Following the successful meeting, the Managing Director of NNPC Retail Ltd., Huub Stokman, and the CEO and Co-founder of PayGas, Philippe Hoeblich, signed a Memorandum of Understanding (MoU) on June 21, 2024, to formalise the partnership.

“This collaboration aims to rapidly deploy Micro-Filling Plant (MFP) solutions using modern technology to make LPG accessible and affordable in rural locations, empowering people with the freedom to pay as they gas,” the statement reads.

What you should know

As a top producer of natural gas in Africa, Nigeria depends on Liquefied Petroleum Gas (LPG) for its household use, particularly for cooking meals.

This shift has put so much pressure on the price of LPG as a result of its high demand.

According to National Bureau of Statistics (NBS), average retail price of 5kg of LPG increased by 13.75% from N6,521.58 recorded in April 2024 to N7,418.45 in May 2024.

In addition, the retail price of 5kg cooking gas increased by 70.12% from N4,360.69 in May 2023 to the current figure.

What this means is that a continuous hike in the price of this commodity may push vulnerable members of society to abandon gas for firewood or other ‘dirty’ energy sources for cooking and other household activities.

More about PayGas

PayGas is the leading pay-as-you-go gas provider in South Africa. Founded in 2019 by Philippe Hoeblich and a team of international experts, the company has established itself as a key player in the energy sector in Africa.

The company’s mission is to deliver flexible, affordable, and clean energy solutions to lower-income households across the country.

By offering a pay-as-you-go model, PayGas makes it easier for families to manage their energy expenses.

The innovative approach to energy distribution ensures that even the most underserved communities have access to reliable gas supplies.

With a focus on sustainability and affordability, PayGas continues to expand its reach and impact across African countries.


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