Financial Energy Review
The Nigerian Content Development and Monitoring Board (NCDMB) and Butane Energy
Limited on Friday recorded a significant milestone in their collective drive to make
liquefied petroleum gas (LPG) a widely accessible, cleaner, and more cost-effective fuel
option for cooking in the country, with the commissioning of a 180-metric-tonne LPG
Filling Plant in Kaduna, Kaduna State.
The Filling Plant, the second after the commissioning of another 100MT LPG Storage
and Bottling Plant in Kabukawa Layout, Katsina, Katsina State, in 2021, is part of a joint
venture to establish five of such facilities in Northern Nigeria with a combined storage
capacity of 1,000MT. Kano LPG Storage and Bottling Plant in Kano State is slated for
commissioning in the first quarter of 2025, while construction work on another in Bauchi
is at an advanced stage. Abuja is next in line.
In an exclusive interview with newsmen after the commissioning ceremony at the
Kaduna Plant, the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe,
represented by the Director, Monitoring and Evaluation of NCDMB, Alhaji Abdulmalik
Halilu, expressed satisfaction with the impressive strides of Butane Energy Ltd.
He pointed out that NCDMB was motivated to enter into equity partnership with the
indigenous LPG storage, trading and marketing company after the latter presented “a
[bankable] business plan aimed at enhancing gas penetration in northern Nigeria.” He
explained that the Board acted in line with its statutory mandate to catalyse in-country
capacity development through equity funding.
NCDMD, he noted further, was also interested in job creation through such projects, as
there were clear possibilities for employment into technical and managerial cadres as
operations progressed. According to him, no fewer than 200 Nigerians gained
employment, and there was the added benefit of local content growth.
Equally significant to the NCDMB was the consideration that the project was in
alignment with Federal Government’s expressed commitment to net-zero emissions by
2026, and the campaign for cleaner alternative to kerosene and firewood as cooking
fuel.
In his own remarks, the Chairman, Butane Energy Ltd, Alhaji Isa Inuwa Muhammed,
stated that NCDMB is a co-owner of the company, and expressed gratitude to the
Management of the NCDMB for the confidence reposed in his company, particularly in
its vision and business approach.
According to the Chairman, the relationship between the Board and Butane is based on
trust, and that the success thus far would greatly reinforce the partnership. Established
in 2017 as a player in LPG storage and marketing, Butane Energy Ltd has massive
distribution assets in northern Nigeria, and is deliberate in its corporate objective to
make the fuel accessible to every part of the region.
The LPG Filling Plant is part of NCDMB’s strategic third-party investments aimed at
supporting in-country capacity development, reducing reliance on traditional fuels,
fostering sustainability and building a greener future for Nigeria.
