Nigeria makes giant stride in LPG market

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Nigeria makes giant stride in LPG market

Abiodun OBA      |       

The Federal Government has made a giant stride in the LPG market with about 70,000 million tonnes per annum (MTPA) in 2007 to 624, 000 MPTA as at September 2019.

The Nigeria Liquefied Petroleum Gas Programme Manager, who represented Vice President Yemi Osinbajo but spoke in his personal capacity stated this at the Nigeria LPG Summit 2019 on Tuesday in Lagos.

He said this was made possible through the removal of five per cent Value Added Tax on LPG and 25 per cent to 30 per cent Import Duty waiver on LPG equipment and appliances.

Mr Dayo Adeshina, Programme Manager, National LPG Expansion and Implementation Plan, spoke at the Nigeria LPG Summit 2019 on Tuesday in Lagos.

Adeshina said that the government would also continue to support the LPG industry with fiscal policies and incentives to guarantee the actualisation of its target of five million metric tonnes of LPG consumption by Nigerians in 2023.

According to him, government plans to ban consumer ownership of Liquefied Petroleum Gas (LPG) cylinders to enhance safety and deepen cooking gas penetration in the country.

Adeshina maintained that standardisation of LPG cylinders and safe use in Nigerian homes could only be achieved when ownership rests strictly with dealers and distributors; adding that cooking cylinders ought to be recertified periodically, adding that the average life span of a cylinder was 15 years.

He said two investors with the support of the Standard Organisation of Nigeria (SON) had indicated interest to establish recertification plants in the country.

“That is why we need to retrieve some of these cylinders still in circulation because we need to recertify them to ensure that they are safe for usage.

“The government’s focus is to create awareness through sensitisation campaigns and cylinder injection programme,” he said.

Adeshina said the government would continue to act as an enabler for the LPG industry to thrive and create a market viable for all the players in its value chain.

In her comment, the Director, LPG Summit, Mrs Neasa Hapiak, said many industry stakeholders were paying attention to the Nigeria LPG market, noting that there should be concrete steps to sustain the business in the country.

Hapiak said this could be achieved with the collaboration of government and LPG industry stakeholders as well as entrenching a culture of safety and training of personnel in the industry.

Earlier in his address of welcome, Mr Nuhu Yakubu, President, NLPGA, said the theme of the summit,” LPG: Harmonising Development and Growth in Nigeria and Africa,” was very timely.

“There is no better time to discuss on the industry imperatives as it relates federal government agenda to deepen the safe use of LPG in Nigeria.

“This can be deduced from facts and figures that speak to the ever dynamic and geometric growth which we have witnessed in the last decade,” he said.

The summit was jointly organised by the Nigeria Liquefied Petroleum Gas Association (NLPGA) and Liquefied Petroleum Gas Summit, based in Singapore.

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