Financial Energy Review
The President of Nigeria Liquefied PetroleumGas (NLPGA) Felix Ekundayo, said the opportunities created by the petrol subsidy removal would provide further growth impetus for the industry since LPG remains the most available alternative fuel in the automotive and industrial sector.
Ekundayo, disclosed that the LPG industry in Nigeria recorded an impressive turnover of over N1 trillion in 2022, owing to some aggressive policies embarked on by the federal government between 2007 and 2022 to accelerate the production and utilisation of cooking gas domestically.
“In Nigeria, LPG utilisation has grown over 2000 percent between 2007 when the federal government led a purpose driven intervention by domestic LPG producers and 2022.
“The LPG industry’s annual turnover in 2022 was over one trillion naira. The industry is expected to continue growing strongly given the federal government’s Decade of Gas policy, announced in 2021” he stated.
He maintained that the unification of the naira with the new federal government’s foreign exchange policy would in the long run also help the gas industry with increased Foreign Direct Investments (FDIs) from investors, who would be willing to exploit the opportunities available in the sector, with the full confidence of being able to repatriate their profits.
“The need to further explore the usage of LPG other than for cooking will further be thrown open with the rising cost of old fuels like diesel and petrol; alongside the rapidly increasing traditional form of energy generation through electricity, as Service Based Tariffs for electricity guided by the Nigerian Electricity Regulatory Commission (NERC) is expected to increase from reports based on reactions from floating of the naira and a spike in inflation,” Ekundayo explained.
Speaking on the forthcoming conference in November 2023, he said this year’s conference offers opportunities to build relationships with industry participants and gain knowledge of the unique financing, insurance cover and other business-enabling requirements, of the sector
“The Energy Transition is unfolding in Nigeria and the NLPGA as it has done for several years at our past conferences, shared the huge potentials and opportunities that lay with usage of LPG.
Sessons that will be discussed by industry experts include, autogas as Alternative to Fuel Subsidy which is a germane issue in our national discuss currently.Recommendations for Autgas Policy and Rollout, Technology in LPG opportunities for the Youth, Life style Impact and Economic Empowerment of Women as discussed by Women In LpG, Identifying financial incentives for Decade of Gas, Petroleum Industry Act: Multiplier Effects in LPG section, Boosting Revenues
He stated that the sessions will serve as sub themes to further drive home the main theme of the conference, LPG: Bridging the Energy Transition, adding that this is an interesting time in the gas industry, particularly in the country.
