Nigeria's liquefied petroleum gas sector is expanding rapidly. Cylinder-based distribution remains the dominant model for millions of households, marked by supply uncertainty, poor consumption visibility and inefficient logistics chains that constrain growth for operators and consumers alike.
Merit Ogbonna, Founder and Chief Executive Officer of Texcoval, an AI-powered IoT energy logistics software company, spoke to Petroleumprice.ng about how the company evolved from a traditional LPG skid plant into a technology platform, the role of prepaid metering in solving affordability challenges, and what the NMDPRA's Gas Distribution Licensing framework means for companies building piped gas infrastructure across Nigerian estates.
What gap in Nigeria's gas distribution system convinced you to build Texcoval?
Texcoval started as a traditional LPG skid plant. Running that business gave me first-hand exposure to just how fragmented the system was. Visibility into consumption was almost entirely absent. Consumers were dealing with heavy cylinders, constant scarcity and unpredictable supply. On the operator side, we were relying on manual processes with no data, no track record and no way to scale beyond a certain point. I knew we could not remain traditional. That experience was what convinced me that the sector needed a technology-based energy system, and that was the pivot Texcoval made.
What does your estate-based gas reticulation model mean for a household that has spent years managing cylinders?
It means a household no longer has to carry a cylinder to a station or wait and wonder whether there is product available. With our gas reticulation system, residents in an estate can access gas through a centralised network piped directly to their homes. They can monitor their usage in real time and pay for exactly what they consume. The uncertainty disappears. The stress of cylinder management disappears. What replaces it is a more convenient and reliable energy experience.
How does your prepaid consumption model address the affordability and unpredictability Nigerian gas users face daily?
The prepaid model gives consumers control in a way the cylinder system never c–ould. Instead of waiting on a large bill or worrying about unexpected costs, users purchase in line with whatever their budget allows and track their consumption daily. That creates real predictability. For us as operators, it also creates better demand visibility. We can see what is being consumed, when and at what rate. That is information the traditional model simply does not generate.
The NMDPRA launched its Gas Distribution Licensing framework in January 2025. How well does Texcoval fit within that regulatory direction?
When that framework was announced, I was genuinely excited because it confirmed that others were seeing the same structural need we had already started building for. The NMDPRA's direction is to encourage a transition from cylinder-based consumption towards safer and more organised pipe distribution networks. That is essentially what Texcoval has remodelled itself around. Our model combines estate gas reticulation with digital metering and consumption management. As the regulatory environment increasingly supports structured gas networks, companies that can deliver both infrastructure and technology will be well positioned, and we believe Texcoval is that company.
How does your logistics software solve the supply chain problems that have made last-mile gas delivery unreliable?
The core problem was always visibility. Operators had no real-time picture of demand, no delivery schedules and consumption pattern data. Procurement happened by phone call. You were not even certain whether product was available at the depot or whether your delivery was on its way. There was no tracking and no data. We built a software platform that changes that entirely. Operators can now track products in purchase, in transit and by availability. That replaces guesswork with information, and information is what makes last-mile distribution reliable.
Nigeria's domestic LPG consumption crossed 2 million metric tonnes in 2024. How is Texcoval positioning itself to capture that growth as estate developments continue to expand?
LPG is growing in a way that is genuinely exciting. Urban communities are expanding rapidly and the need for reliable, scalable energy infrastructure has never been more urgent. Our strategy is to provide the technology layer that helps these communities manage gas distribution efficiently while building the foundation for long-term growth in domestic LPG consumption. What the market is telling us, consistently, is that it wants smarter distribution solutions rather than the traditional model. That is exactly what we are building.
What has early feedback from estate developers and residents told you about the problem you are solving?
The feedback has reinforced our view that the market is ready for this. Residents value being able to understand their usage and what they are spending on a monthly basis. That kind of transparency and control was simply not possible under the cylinder model. Estate developers are recognising that this infrastructure adds real value to their properties and to the experience of residents. The early reception has been encouraging and it confirms that the problem we identified is one the market genuinely wants solved.
Where does Texcoval go next, and what is your five-year vision for the company?
The vision is to build Texcoval into a broader African energy technology company, one that creates digital infrastructure helping communities access safer, smarter and more energy-efficient services. Our focus beyond Nigeria is West Africa, where similar energy access challenges exist across multiple markets. What we are building is not just gas distribution. It is digital infrastructure that can make energy more accessible and more scalable across the continent. That is the company we are working towards, and I am proud of the journey we have already started.