…orders NLNG to increase supply in local market — Experts tell FG
By Alao Mathew, Ariemu Ogaga & Uthman Salami
Indications have emerged that a great number of Nigerians have jettisoned the use of Liquefied Petroleum Gas (LPG), popularly known as cooking gas, due to rising prices and opted for charcoal, a cheaper and available energy source despite environmental implications.
Concerned industry leaders who spoke with Nigerian NewsDirect expressed worry and concern over the continuous increase in prices of cooking gas and its unavailability.
In recent times, it has become increasingly difficult for consumers as the price of LPG has trended upwardly.
The rise in price is from the backdrop of Federal Government’s efforts channel at promoting more use of gas in Nigeria and its declaration of 2021-2030 as Nigeria’s decade of gas program.
This programme is targeted at increased use of cooking gas as a cleaner source of cooking energy for Nigerians.
However, the pressure to find a cheaper and more accessible energy sources have left many Nigerians to the choice of Charcoal.
A resident of Lagos, Miss Bamiro Mary, who is into trading told our correspondent that she preferred to use charcoal in this season due to high cost of cooking gas.
She added that going back to the use charcoal will help her as she couldn’t afford the price of gasoline as daily meal is a must.
She said, “I prefer charcoal to use of gas because that is what we can afford. I had used charcoal in the past to cook for my household. But the price was quiet affordable back then. I was introduced into use of cooking gas as it fastest means of cooking.”
She lamented that she could not “be spending much on getting food and also be spending much in filling gas. I cannot afford it. I have to move to what I can afford because we must eat.”
Another resident, Mrs. Ojo Bamidele, a widow said she has gone back to the use of charcoal and firewood due to increasing price of cooking gas.
She said if Nigeria that claims to have sufficient gas reserves for its citizens could not make it affordable for them, it behooves on them (citizens) to find alternatives.
She said she seemed not to understand the reason behind the high prices of cooking gas. She however charged the Government to help find lasting solution the price hike.
Mr Philip Adetula, a Civil Engineer, lamented the surge in the price of gasoline, noting that “as at last month the price of Gasoline per KG was N450 yet people were complaining. But this month 1kg is sold for N550.
According to him, “The price of goods and services is what we were battling with. Now, cooking gas that used to be cheap in those days has now become gold. Using of Charcoal to cook is the best option for now because we can’t be suffering to get food on the table and to be suffering to get gas too.”
Last year, it was reported that Nigeria is losing its last remaining patches of thick forest at an alarming rate.
According to the Food and Agriculture Organization (FAO) the country has lost 50 per cent of its forest cover in two decades and is losing at 5 per cent a year, the highest in the world.
At this rate, experts warn, the country would lose all its forests by 2047.
Issue NLNG marching order to increase supply in local market — Experts tell FG
Speaking on the development, Oil and Gas Experts, Barr. Madaki Ameh, Mr Zakka Bala and Mr Nick Agule in separate interviews with Nigerian NewsDirect urged Federal Government to give marching order to Nigeria Liquefied Natural Gas company (NLNG) to increase domestic supply of Liquified Petroleum Gas(LPG), develop zero gas flaring policy to halt cooking gas scarcity.
Madaki explained that the hike in price of LPG could be attributed to the introduction of VAT (Value Added Tax) to the importation of the product into the Country.
According to him, “It is extremely frustrating of the current price of cooking gas, the Government policy is upside-down. The people will continue to suffer, the government does not care. People are going back to Charcoal despite all the health implications.
“There is so much gas available, why do you flare gas only to import the same product when you have the company in Nigeria that can produce it.”
He urged the government should issue a marching order for the production of cooking gas sufficient for local market.
“This can be easily done, I don’t know why FG will want to cause unnecessary pain to the Country and to the extent that people have to use Charcoal in 21st century. It is shameful. I think we have gone past the point of being ashamed.”
He further charged that, Federal Government should set a certain percentage for domestic comsumption.
“There is no point in exporting LPG to other countries when the domestic market is not well served,” he said.
On his part, Zakka called for a return to the right Economic Model in the oil and gas sector.
He lamented the kind of economic model that have led Nigeria into this kind of shameful situation.
He explained that as long as Nigeria is not refining it own crude oil, the Country will continue to encounter internal challenges.
“If with all the universities and Engineering departments we have in Nigeria yet cannot produce crude oil then it is shameful.”
He said that the health implications for using Charcoal and effect on Global warming are alarming.
In his words, “Nigeria is not a serious Country. A country that cannot provide basic cookimg gas, electricity, petrol, Kerosene, Disel, fertilizers that kind of country cannot be reckoned with.”
He advised that the government of Nigerian should stop bragging and having the thought that the country is on the right economic trajectory.
Meanwhile, suggesting possible ways out of the situation, Nick Agule recommended that, in the short term, the FG must take immediate measures including requesting the NLNG to increase supply to the LPG market. This will ensure more supply to market with consequent fall in prices.
He also said that in the medium term, the FG must read the riot act to the upstream oil companies in Nigeria to harness and utilise produced gas. Once gas is produced, it must be used. This will make more gas available to the Nigerian economy for cooking, electricity generation, fuel for vehicles etc.
He adviced that in the long term, the FG must have a zero gas flares policy and impose punitive duties on imported LPG to make it uneconomical to import. This makes Nigeria self-sufficient in gas supply thus taking off the pressure on the forex market by importers who source the dollar to import gas into Nigeria.
He further added that the FG must regulate the LPG market. With the Petroluem Industry Act (PIA) setting up a regulator – Nigerian Midstream and Downstream Petroleum Regulatory Authority – LPG must come under a regulator to create an enabling environment for local producers to thrive.