Cost of Building Cooking Gas Plant/Station in Nigeria (2024)

How Much Does it Cost to Build Cooking Gas Station or Plant in Nigeria?

The business of setting up a cooking gas plant or station is a profitable in Nigeria as a result of increased use of cooking gas in Nigeria.

cost of building gas plant

However, the cost of setting up cooking gas station or plant in Nigeria is very high as certain logistics and safety measures must be put in place.

Cooking gas plant business in Nigeria is very lucrative especially when it is cited in urban centers.

This is as result of high usage of cooking gas as domestic energy source in cities and urban areas in Nigeria.

Also, most users of cooking gas now feels it is cheaper to buy their gas direct from gas stations and plant instead of retailers.

It is cheaper to set up a cooking gas station in Nigeria than petrol or filling station in Nigeria.

This not withstanding, it requires a significant amount of money to start or build cooking gas station in Nigeria.

In this post we will review the average cost of setting up or building cooking gas station or plant in Nigeria.

Also to be discussed in this post is tips and how to set up cooking gas plant or station in Nigeria.

Here, we will look at the requirements for setting up cooking gas station in Nigeria.

Cost of Setting Up Cooking Gas Station/Plant in Nigeria

The required amount for building a cooking gas station in Nigeria is relative.

Some cooking gas plants are mega cooking gas plants while some are just standard cooking plant with less kg gas tanks or cylinders.

However, the major difference among different cooking gas (LPG) stations is just the size of the gas tanks or cylinders.

Almost same safety measures for cooking gas plant is required at all gas plants irrespective of the size.

On average it will cost between N15 million to N25 million to build a cooking gas ( LPG) plant in Nigeria irrespective of the size of the gas tank or cylinder installed.

However,the number of cooking gas dispenser installed in the cooking gas station will affect the overall cost of setting up LPG cooking gas in Nigeria.

This above cost of building cooking gas plant in Nigeria is including administrative offices and other facilities within the plant.

Tips on How to Build / Set Up Cooking Gas Station in Nigeria

There are certain things that should be put into cognizance for successful, set up, running and operations of LPG cooking gas plant in Nigeria.

The competition for cooking sales of cooking gas is heating up across Nigeria especially in top cities.

Nevertheless, the business of investing in cooking gas station remain a lucrative one.

But for best of patronage and high success rate, certain factors must be looking by those about to throw money at the business of setting up cooking gas plant in Nigeria.

Here are some of best ways to build and start cooking gas station in Nigeria.


For effective patronage and high sales, proximity to homes should be considered when siting or choosing a location for construction of cooking gas plant in Nigeria.

As stated earlier, because consumers now prefers to buy direct from cooking gas stations, nearness to residential areas should be one of core things to consider before setting up or investing in cooking gas station in Nigeria.


Also, power source should be taken into account as you consider starting or building cooking gas station.

Cooking gas station needs power to operate and run, as such you must consider your options of combining power generators and power from national grid.

Just be aware that your source of power will affect the overall cost of running or operating a cooking gas plant.


Manpower is another very important thing to consider when trying to set up cooking gas station.

You will need to consider the number of staff and manpower needed for effective running of the gas station.

Consider number of accountants/ cashier, pump attendants, security personnel and manager.

These are some of the personnel that will be very important to the successful set up and operation of LPG cooking gas station in Nigeria.

LPG Gas Tanker

Based on budget and operational plans, getting cooking gas tanker for procurement of supply will also help in easy and efficient conveying of supply to the gas station.

Some big players in the industry go a long way to procure their own gas tanker for the purpose of runing the cooking gas station efficiently.

However, supply can also be gotten through public and commercial gas tankers.

But this process can sometimes delay supply to gas plant and station.

How Profitable & Lucrative is Cooking Gas Station / Plant Business in Nigeria?

It is very Profitable and lucrative to setup or build cooking gas plant in Nigeria.

This is because of wide acceptance and increase use of cooking gas as alternative source of domestic energy.

As a dealer of cooking gas station, you will sell both in wholesale and retail distribution and currently across major cities, patronage is very high.

There is high profit margin in sale of cooking gas business.

How much people make from cooking gas station business is dependent on the size of your cooking gas tanks in your gas station.

According to multiple sources, about 20% of the total cost of the cooking gas supply is recouped as gain in business of cooking gas station and plant after exhausting supply in the tank.


The Author

Emmanuel Igwenagu

Igwenagu Emmanuel is the founder of Nigerian Informer. He holds B.A, M.Sc in Mass Communication. He is a Communication researcher and 112 emergency help line dispatcher.


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  1. Highly lucrative business. Can I have a proposal for the business? I want to start mine.

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