The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has stated that Nigeria will save $10billion annually if half of the population switches other cooking fuel to Liquefied Petroleum Gas (LPG) otherwise called cooking gas.
Speaking at a day seminar organised by the Ibadan branch of NALPGAM, National President of NALPGAM, Mr Nosakhare Ogieva-Okunbor, President of NALPGAM, stated that “Nigeria will save over $10 billion annually if 50 per cent of its population switch to cooking gas by 2019.
“It is regrettable that Nigerians still use kerosene in large quantities, while the cleaner fuels like cooking gas can save over 55 per cent of Nigeria’s primary forest. The association appeal to the government to promote the use of cooking gas in rural communities.
“By this, it will create over one million jobs in the LPG value chain in the next three years if the kerosene to LPG switch programme is implemented nationwide.”
The seminar, themed: “Promoting a Sustainable Environment for Best Practices in LPG Marketing” was to sensitise members on ensuring sustainability in business environment.
Ogieva-Okunbor explained that due to the growing potential of LPG in Nigeria, there was need for government to show more commitment by addressing factors that hinder the growth of the industry in Nigeria.
“Embracing cooking gas will ensure the reduction in deforestation, carbon emission into the atmosphere and increased tax revenue for government at various levels.
“We expect an annual target of cooking gas consumption volume of at least five million, up from the current annual consumption rate of about 400,000 metric tonnes.
“This can be achieved if we replicate the success story of Indonesia, which was able to get 53 million homes to use gas in three years.
“Today, in the energy mix of cooking in Nigeria, firewood takes the pride of place with 60 per cent, kerosene 30 per cent, coal five per cent, and cooking gas a dismal five per cent,” he added.
The president, also reiterated the need for the government to remove the Value Added Tax (VAT) on Liquefied Petroleum Gas, popularly known as cooking gas.
Ogieva-Okunbor said government is yet to remove VAT from locally sourced LPG in spite of its promises.
This, he, added had been affecting the pricing and demand for LPG in the country.