Nigeria Liquefied Natural Gas Limited, NLNG, based on the Island of Bonny, Rivers State called for an enabling atmosphere for the Liquefied Petroleum
Nigeria Liquefied Natural Gas Limited, NLNG, based on the Island of Bonny, Rivers State called for an enabling atmosphere for the Liquefied Petroleum Gas (LPG) market in the Nigeria.
This will enable it to increase its market penetration by 32% from 400,000 MTPA (Metric tonnes per annum) to 3 million MTPA by ending of 2021.
Mr Tony Attah, the managing director said that a study conducted by NLNG revealed that within five years, Nigeria can grow her per capita consumption of LPG to 12 kilograms (kg) from about 2kgs and added that the nation’s LPG per capita consumption was the smallest in Africa but stated that NLNG had taken challenge to grow LPG usage in Nigeria by aggressive and well-coordinated market expansion strategy.
The sub-Saharan average is 3.5kgs per capita. He however said NLNG need the government to aid its efforts to make sure the market tallies with market estimates shown by its study.
According to Mr Attah, other restrictions to business growth beyond NLNG’s control which frustrate the full-scale development of the market include the lack of investments in LPG reception facilities and supply infrastructure.
Also included are throughput problems and the burdensome fiscal regime like the imposed value added tax (VAT) on LPG produced in Nigeria while the volumes imported are granted VAT waivers and the regulatory environment.
These continue to obstruct the overall step change growth in the industry.
Foreign investors can take advantage of this opportunity by investing in LPG reception facilities and supply infrastructure in Nigeria.