The Nigeria LPG Association has said it is engaging with the Federal Government to resolve the issues responsible for the lingering cooking gas crisis in the country.
The President, NLPGA, Mr Nuhu Yakubu, stressed the need to sustain the growing adoption of Liquefied Petroleum Gas, popularly known as cooking gas, through sector-friendly policies and programmes.
He spoke at the 11th NLPGA International Conference and Exhibition, with the theme, ‘Market growth and fiscal regulations – Rethinking the LPG supply gaps amid the challenging regulatory environment’.
He said: “As an association, we are currently engaging with respective government agencies in addressing issues around LPG supply, particularly access to foreign exchange, value-added tax, levies, etc. We believe our efforts will yield positive results in good time.
“Also, it is not far-fetched to state, therefore, that sustaining the growing adoption of LPG through sector-friendly policies and programmes will support economic growth that will yield jobs and wealth creation.”
Yakubu added that the association would continue in its collaboration with industry regulators to advocate the highest safety standards amongst members.
In a communique issued at the end of the event, stakeholders said the Petroleum Industry Act should be implemented in a manner that would encourage massive domestic and foreign investments, required to stimulate sustainable growth while creating many multiplier effects, including jobs for Nigerians.
It said, “That such new investments are required to reduce Nigeria’s current dependence on imported LPG as well as meet rising future demand, based on increased population. That the government should be consistent in the conceptualisation and implementation of policies needed to ensure stability in the LPG sector.
“That relevant stakeholders need to be involved and carried along in the process of taking new decisions to ensure successful implementation. That the imposition of the Value Added Tax has negatively affected the sector in many unintended ways and should be eliminated.”
They said the high prices of LPG had shifted the demand to firewood and charcoal, thus fuelling desertification and erosion with a very negative impact on the environment.
They added that new incentives should be introduced to stimulate investment, processing and utilisation of LPG in Nigeria in line with the nation’s Decade of Gas agenda