Nigeria’s Liquefied Petroleum Gas (LPG) or cooking gas consumption has grown by over 2,000 per cent between 2007 and 2022 with annual turnover of over N1 trillion.
This, according to the President, Nigeria Liquefied Petroleum Gas Association (NLPGA), Mr Felix Ekundayo, became possible as a result of Nigeria’s government led purposeful intervention by domestic LPG producers.
Ekundayo who was speaking in Lagos on Wednesday on the forthcoming international conference and exhibition with the theme: LPG: Bridging the energy transition, noted that Nigeria’s gas industry is expected to continue growing strongly given the Federal Government’s “Decade of Gas” policy, announced in 2021 and the opportunities created by the subsidy removal.
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Represented by the association’s Vice President, Mr. Ladi Falola, Ekundayo said fuel subsidy removal would provide further growth impetus since LPG remains the most available alternative fuel in the automotive and industrial sector adding that seven out of the largest 10 car manufacturers produce LPG run vehicles and more than 27 million vehicles globally run on it, a growth of 40% in the last decade.
Ekundayo also noted that the recent unification of the Naira with the new Federal Government’s foreign exchange policy will in the long run also help the gas industry with increased Foreign Direct Investments from investors who will be willing to exploit the opportunities available in the sector with the full confidence of being able to repatriate their profits.
“The need to further explore usage of LPG other than for cooking will further be thrown open with the rising cost of old fuels like diesel and petrol; alongside the rapidly increasing traditional form of energy generation through electricity as Service Based Tariffs for electricity guided by the Nigerian Electricity Regulatory Commission (NERC) is expected to increase from reports based on reactions from floating of the naira and a spike in inflation”
“To be able to cope with the increased awareness and demand for LPG, the association is investing in research and training for the industry. At the 2022 conference to mark the Domestic LPG Supply Scheme, the NLPGA unveiled to the public its training and resource Centre project which when completed will provide over 30 areas of study in a curriculum based on the field of Gas operations, usage, safety and more”, Ekundayo noted
Speaking further on the conference which is the 13th in the series, the President said the event would be held in November, 2023 as members, businesses involved in the value chain of the LPG sector in Nigeria, regulators, producers, manufacturers, operators, traders and other stakeholders are expected to attend.
