Experts Applaud Federal Goverment on LPG Investment Promotion
Nigerian Gas Association (NGA) has applauded Federal Government’s efforts to promote Liquefied Petroleum Gas (LPG) also known as cooking gas in Nigeria, for greater development of the economy.
President of the association, Audrey Joe-Ezigbo, speaking at the LPG West Africa forum and exhibition, acknowledged the actions of LPG expansion committee, set up by the government to promote the utilisation of LPG not just as a cooking gas, but also as an industrial fuel.
Joe-Ezigbo noted that the focus of the event was on how LPG as a resource in the sub-region could deploy best practices, and new technologies to create necessary synergies from Nigeria and other countries. She however decried that dearth of infrastructure is a key challenge in the industry, adding that the creation of investment opportunities in the Industry would help tackle this.
“One key challenge plaguing the gas sector in its entirety, whether you are talking about natural gas or talking specifically about LPG is the dearth of infrastructure within the LPG framework. Currently, we have a situation where due to challenges with logistics, we are producing LPG in one part of the country, shipping it to Lagos, and then taking it back to the same part, which has a lot of implications for cost and safety.
She said “Investment opportunities now exist around the development of various storage and delivery facilities across the country. We want to make sure that LPG is available all over Nigeria beyond cooking, to provide room for LPG utilisation even in power and various types of industry.”
Programmes Manager, National Liquefied Petroleum Gas Expansion Plan, Adedayo Adeshina, said enforcement of polices, safety and equipment are critical in achieving a growing industry. On activities to create opportunities for investment, he said the removal of VAT on LPG has been effected and friendly polices have been enacted.
Adeshina said: “For cylinder policy, there is a five-year plan, where for the first two years, there would be importation and local manufacturing, but the fifth year should be 100 per cent local manufacturing.”He noted that there is currently a gas flaring commercialisation programme, which is driven by the federal government and the World Bank, to allow companies participate in providing solutions to gas flaring in Nigeria.
He gave the statistics of cooking fuel usage as; firewood 60 per cent; LPG five per cent; Charcoal five per cent; and kerosene 30 per cent, with plans to have LPG take up about 90 per cent per capita consumption.