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Full implementation of LPG policy’ll unlock $10bn opportunities—Group

Leading pressure group in the nation’s gas sector, the Nigerian Liquefied Petroleum Gas Association (NLPGA), has said that full implementation of the nation’s LPG policy will spur a revolution in the LPG industry by driving the possibility of unlocking the over $10bn opportunity in the sector.

While urging the Federal Government to ensure full implementation of the policy to the benefit of the country, NLPGA also advised its members to tap into the over $10bn investment opportunities to be unlocked by the policy.

Explaining issues surrounding the expected new wave of investment in the gas sector at its annual CEOs’ breakfast meeting held recently in Lagos, the Executive Secretary, NLPGA, Mr. Joseph Eromosele, said the overall goal of the LPG policy was to promote the wider use of the LPG in domestic, power generation, auto gas and industries while increasing national consumption to five million metric tonnes in five years.

According to him, over $10bn can be generated if 50 per cent of the current kerosene and firewood users in the country switch to cooking gas by 2019.

“Only five per cent of the Nigerian population utilises the LPG for cooking while 56 per cent depends on firewood and 27 per cent on kerosene. Over 30 million households and more than 100 million Nigerians depend on firewood as a source of energy for cooking but this has come with collateral damage to human health, environment (deforestation) and the economy. With the LPG policy, we will be able to drive broader penetration of the LPG into homes, especially the low income households in rural areas.

“Over $10bn will be generated for the economy from the switch of 50 per cent kerosene and firewood users by 2019.  Estimated 500,000 to 1,000,000 jobs will be created in the LPG value chain within the next two years with the planned kerosene to the LPG switching programme.”

Also speaking, the Deputy President, NLPGA, Mr. Nuhu Yakubu, said the policy also aimed to use the LPG to displace low pour fuel oil and diesel as popular fuel among industrial users while deepening applications in agriculture and commercial establishments.

The group therefore enjoined LPG producers, marketers, financial institutions and other stakeholders to speed up activities in order to jointly unlock opportunities in the policy for the economy and sector development.