Nigerian $10bn LPG opportunity outlined
The Nigerian Liquefied Petroleum Gas Association (NLPGA) has claimed $10bn could be made if just 50% of the country’s kerosene and wood users switched to LPG.
The NLPGA made this call during its annual CEOs’ Breakfast Meeting held recently in Lagos, where LPG producers, marketers, IFC, UBA, Sterling Bank and other stakeholders brainstormed on the investment opportunities that are expected to be catalysed by the national LPG policy.
According to This Day, NLPGA’s executive secretary, Joseph Eromosele, explained in his opening remarks that the overall goal of the LPG policy was to promote the wider use of LPG in domestic, power generation, autogas and industries while increasing national consumption to five million metric tonnes in five years.
Eromosele said: “Only five per cent of the Nigerian population utilises LPG for cooking while 56% depends on firewood and 27 per cent on kerosene. Over 30 million households and more than 100 million Nigerians depend on firewood as a source of energy for cooking but this has come with collateral damage to human health, environment (deforestation) and the economy.
With the LPG policy, we will be able to drive broader penetration of LPG into homes, especially the low-income households in rural areas. Over $10 billion will be generated for the economy from the switch of 50 per cent kerosene and firewood users by 2019. Estimated 500,000 – 1,000,000 jobs will be created in the LPG value chain within the next two years with the planned Kerosene to LPG switching programme.”