Despite Challenges, Nigeria’s Cooking Gas Market Has Prospects for Further Growth, Says NLPGA

Peter Uzoho

The President of the Nigeria Liquefied Petroleum Gas Association (NLPGA), Mr. Nuhu Yakubu has stated that the country’s LPG market has prospects for further growth despite the challenges facing the domestic market.

Yakubu listed such challenges facing the market as
counter-productive policies, fluctuations and foreign exchange volatility among others.

He made the assertions recently during the just-concluded NLPGA’s Annual General Meeting (AGM), adding that despite those challenges, the Nigerian LPG “market remains arguably the fastest growing sector and has effectively gained Nigeria the focus of international community, with attendant benefits, which we are exploring for your benefit”.

He admitted that the consumption of LPG commonly known as cooking gas has increased by 20 percent to 1.2 million tonnes (MT) in 2021, from one million MT in 2020.

Yakubu maintained that the consumption of LPG and the emphasis on gas expansion have equally continued to be a national discourse in the country, adding that activities in recent months, with programmes and activities planned for the present and the near future indicate that Nigeria has woken up to the reality to take deliberate steps to shift to a gas-based economy.

He said, “From inception to date, it has been very busy for the NLPGA Executive Committee, which you elected to run the affairs of this association, with enormous support from the Governing Council. Thanks to the active engagements by this Exco. NLPGA is now a popular household name in the industry, and has grabbed a seat at the all-important table at which gas matters are discussed in Nigeria.

“The Exco has arranged official physical and online engagements, negotiated (some are still ongoing) collaborations and agreements, including the National Gas Expansion Programme with an impetus for LPG for industrial gas, cooking gas and autogas market in Nigeria, the organisation of the just-concluded first in-person International conference and exhibition, after two years, in collaboration with the Gas Academy and the organization of our 2019 conference and exhibition in collaboration with LPG summit.

“Others included the NLPGA workshop in 2018 in collaboration with WLPG, to compensate for the postponed LPG summit, safety webinars, training, grassroots sensitization and awareness to sensitize members on internationally acceptable standards in the LPG sector.”

The NLPGA president reiterated the 10-year manufacturing partnership between the association and one of its members, RUNGAS, on composite cylinder production for the association.

This partnership, according to him, seeks to make available, NLPGA branded composite cylinders at affordable and competitive terms to members for their customers and also with the Standards Organisation of Nigeria (SON) on developing, reviewing and adoption of elaborated standards for safe use and handling of LPG and LPG equipment.

Yakubu further said, “With Lagos State Government, Ministry of Energy and Mineral Resources, Committee for Safe Use of LPG, Expansion and Adoption; Sustained partnership for improved visibility and media presence for NLPGA.

“With Nigeria Gas Association (NGA), to join as one voice in advocacy for gas sector reforms. With the CBN and likewise the NCDMB, for funding support for LPG sector

“With offices of the Vice President and the Ministry of Petroleum Resources for National LPG Expansion, Federal Road Safety Commission (FRSC) for LPG incidents First Responder Trainings.”

He also noted that some successfully-concluded initiatives included, “Sustained curation and distribution of the association’s monthly Newsletter Bulletin, to better educate members and the public on our activities and the latest advancement in Nigeria and global LPG sector.

“Participation in the launch of the National Auto Gas Transport Initiative by the Federal Government. Support to WINLPG with expert human resources and promotion/safety demo items for its Roadshow. Project Site tour of and participation in the commissioning of Stock gap LPG Terminal in Port Harcourt.”