Nigeria’s $10 billion LPG industry can stimulate economic growth

0
1227

The President of Nigeria Liquefied Petroleum Gas Association, NLPGA, Nuhu Yakubu, has identified the LPG sector as very strategic, capable of stimulating economic growth in the country.

Oil-pipeline Speaking at this year’s annual NLPGA conference in Lagos, Yakubu stated that the country remains a net exporter of the product.

According to him, “Nigeria is a net exporter of LPG. We produce more than five million metric tons of LPG per annum and we are exporting over four million metric tons. Nigeria only consumes about 500,000 metric tons when we have the capacity to consume five million tons.

“The LPG market as we rightly say is a $10 billion industry with many multiplier effects, including employment.” He lamented that the sector was affected by many problems especially, “inadequate infrastructure such as gas cylinders and tankers required for storage and movement of the product from one place to another respectively. We also need qualified and experienced personnel to enhance LPG operations in Nigeria.”

However, he added that they are working with the Federal Government.to solve the problems. “We appreciate the fact that this government is listening. For instance, the government has appointed one of our members as the program director of LPG.

”For once, we have seen government put a ‘square peg in a square hole’. Consequently, he understands the issues very well. Apparently because of the robustness of our discussions, the government is thinking of injecting more cylinders into the market because every home in the country deserves to have a cooking gas cylinder.

This will go a long way towards tackling energy poverty as well as various health issues associated with the application of dirty fuels.” Commenting on other challenges, he added that: ”We need functional terminals.

The retail side of the business is not growing as fast as it should be because of affordability. “The product is not delivered to consumers at the right price because of sharp practices and the bottlenecks at the jetties. Also, we do not have adequate trucks for distribution of the product.”

This site uses Akismet to reduce spam. Learn how your comment data is processed.