May 28, 2024
LPG: NLPGA, experts move to tackle foreign exchange, high prices, instability
– By Alison_Godswill

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LPG: NLPGA, experts move to tackle foreign exchange, high prices, instability

 

The President, Nigeria LPG Association, Mr. Nuhu Yakubu, Thursday, disclosed that the association has embarked on moves targeted at eliminating issues and problems currently hindering stability in Nigeria’s Liquefied Petroleum Gas, LPG sector.

In his welcome address at the just-concluded 11th International Conference and Exhibition, which had the, ‘Market Growth & Fiscal Regulations – Rethinking the LPG Supply Gaps Amid the Challenging Regulatory Environment’ as its theme, obtained by The Daily, www.thedaily-ng.com, he said: “As an association, we are currently engaging with respective government agencies in addressing issues around LPG supply, particularly access to foreign exchange, value-added tax, levies, etc. We believe our efforts will yield positive results in good time.

“Also, it is not far-fetched to state, therefore, that sustaining the growing adoption of LPG through sector-friendly policies and programs will advertently support economic growth that will yield jobs and wealth creation. It is our collective responsibility to make this happen and an event such as this is one aimed at setting the pace.

“In line with the 7th Sustainable Development Goals (SDGs), deepening education on the role of diverse applicable uses of LPG is critical as the world aims to provide cleaner, reliable, sustainable and affordable energy sources for everyone by 2030. Worthy of mention is the declaration of the Decade of Gas, by the Honorable Minister of State for Petroleum Resources, Chief Timipre Sylva with the support of the President and Commander in Chief, Retired Gen. Muhammadu Buhari, GCON, who ably doubles as Honorable Minister of Petroleum Resources.

“The LPG sector is projected as an industry with this executive posturing to galvanize the entire LPG value chain to drive an upsurge adoption of LPG in spurring growth and improving the wellbeing of households across Nigeria.

“Though we have had a few safety concerns, it has been a tradition of the Association through its safety committee to provide safety training to truck drivers, plant operators and the industry at large, taking into account lessons learned from every unfortunate incidence.

“The Association will continue in its collaboration with industry regulators to advocate the highest safety standards amongst members, which the NLPGA monthly Gas Bulletin as it continues to gain increasing readership amongst energy enthusiasts in wider local and international circulations, will continue to update readers on these activities and more. This year’s Conference is an avenue to align our thoughts and goals towards how the industry can progressively make an impact in Nigeria’s economy and Africa in general.”

However, in the communique issued at the end of the event, experts noted that the nation has very huge gas reserves of over 200 trillion standard cubic feet, but that the current business environment has not been friendly.

They also called on the Federal Government to create an enabling environment, capable of attracting and retaining massive investments into the LPG sector.

The communique stated: “That the Petroleum Industry Act, PIA, should be implemented in a manner that will encourage massive domestic and foreign investments, required to stimulate sustainable growth while creating many multiplier effects, including jobs for Nigerians.

“That such new investments are required to reduce Nigeria’s current dependence on imported LPG as well as meet rising future demand based on increased population. That the government should be consistent in the conceptualization and implementation of policies needed to ensure stability in the LPG sector.

“That relevant stakeholders need to be involved and carried along in the process of taking new decisions to ensure successful implementation. That the imposition of the Value Added Tax, VAT, has negatively affected the sector in many unintended ways and should be eliminated.

“That the high prices of LPG have shifted the demand to firewood and charcoal, thus fuelling desertification and erosion with a very negative impact on the environment. That a package of new incentives should be introduced to stimulate investment, processing and utilization of LPG in Nigeria in line with the nation’s Decade of Gas agenda.

“That the LPG sector gasps for massive infrastructural development to stimulate and sustain expansion in the coming years. That the government and its agencies should intentionally eliminate all hindrances, especially lack foreign exchange, currently staring the sector in the face.

“That adequate efforts should be made to enlighten the public on health and safety issues in order to reduce or completely eliminate frequent accidents. That the enlightenment campaign would require the deployment of all channels, including the mass media as well as the translation of English contents into indigenous languages and dialects for maximum effectiveness.”

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