NIGERIA’S LPG ADOPTION STRATEGY

The surge in the demand for Liquefied Petroleum Gas (LPG) in Nigeria is currently driven by the removal of Value Added Tax (TAX) on in-country sales and waivers on tariffs for LPG infrastructure by the government since 2018. Seeing the opportunities for LPG across the globe, stakeholders including government agencies and private operators have ramped up advocacy to replace dirty fuels such as kerosene and firewood.

So far, their coordinated efforts have enabled LPG to surge over 850,000 Metric Tonnes (MT) from a mere 70,000 MT. Majority of the consumers are using LPG for cooking gas, where as huge opportunities for use in transport, manufacturing, and power supply through generators remains largely untapped. 

Operators often cite Brazil as a model for increasing LPG adoption in Nigeria. Hence, there are talks about government subsidies to further drive adoption in-country. Do you think this will be an effective strategy? Or will subsidies lead to more corruption?

SOURCE BusinessDay.NG