NALPGAM seeks policies to deepen cooking gas usage


The Nigerian Association of Liquefied Petroleum Gas Marketers has urged the Federal Government to develop policies to deepen the consumption of cooking gas in the country to promote sustainable environment.



The President, NALPGAM, Mr Nosakhare Ogieva-Okunbor, made the call in Ibadan at a seminar organised by the Ibadan branch of the association on promoting a sustainable environment for best practices in LPG marketing.



Ogieva-Okunbor was quoted in a statement as saying that the government could come up with programmes that would boost the switch from kerosene usage to LPG, and thereby create jobs for Nigerians.



He said government’s commitment to policies on gas usage would enable millions of homes to switch to cooking gas.



Ogieva-Okunbor said the association was committed to promoting LPG consumption, adding, “Cooking gas is a more efficient and best alternative to traditional fuel.”



According to him, Nigeria will save over $10bn annually if 50 per cent of the population switch to cooking gas by 2019.



“It is regrettable that Nigerians still use kerosene in large quantities, while the cleaner fuels like cooking gas can save over 55 per cent of Nigeria’s primary forest.



“The association appeal to the government to promote the use of cooking gas in rural communities. By this, it will create over one million jobs in the LPG value chain in the next three years if the kerosene-to-LPG switch programme is implemented nationwide.”



Ogieva-Okunbor explained that due to the growing potential of LPG in Nigeria, there was a need for government to show more commitment by addressing the factors that hinder the growth of the industry in the country.



He said, “Embracing cooking gas will ensure the reduction in deforestation, carbon emission into the atmosphere and increased tax revenue for government at various levels.



“We expect an annual target of cooking gas consumption volume of at least five million, up from the current annual consumption rate of about 400,000 metric tonnes.



“This can be achieved if we replicate the success story of Indonesia, which was able to get 53 million homes to use gas in three years.



The NALPGAM president also reiterated the need for the government to remove the Value Added Tax on LPG.



Ogieva-Okunbor said government had yet to remove the VAT from locally sourced LPG in spite of its promises.



This, he said, had been affecting the pricing and demand for LPG in the country, adding, “The VAT has made locally produced LPG more expensive than imported products.



“It is important that the government that is seeking to boost investment, local production and increased utilisation of LPG should tackle critical issues, especially VAT that stare us in the face.



“The removal of VAT will stabilise the market and stimulate investment, especially as new investors will be encouraged to invest in the sector.”
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