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Cooking gas: NLNG calls for tackling of market barriers

Nigerian LNG Limited, a major stakeholder in the LPG sector urged all arms of government to create an enabling environment to deepen and support an efficient Liquefied Petroleum Gas, LPG market.

The Managing Director/Chief Executive, Nigeria LNG Limited, Mr. Babs Omotowa, who spoke recently in an LPG conference in Lagos, said barriers to market entry must be tackled. He added that the sector is one where government must ensure social and environmental considerations are in place.

To further deepen private participation in the LPG sector, Omotowa argued that the regulatory environment must be backed by government control.
According to him, precedent has been set in other developing countries where growth in consumption was stimulated through government’s intervention. He cited Indonesia, Brazil, India, Senegal, Ghana, and a host of others, which he must be adopted in Nigeria.

Omotowa identified key areas for government intervention to include fiscal incentive, financial/monetary incentive, infrastructural investments and improved safety requirement should be given top priority.
For fiscal incentives, the NLNG boss stated that government should expedite removal of VAT on LPG, taxes and duties concession for LPG equipment and cylinder and accelerate capital allowances on infrastructural investments in the LPG distribution chain.

He also urged government to make available affordable financing with lower interest rates adding government guarantees on loan should be also be put in place.

He said, “there should be direct importation of cylinders for distribution to Nigerians and direct involvement in terminal and storage development. For improved safety requirements, there should be standardization of product quality and enhanced regulation, support for research and development.
“The private sector cannot solely engineer the growth of the Domestic LPG Market government support and drive is required.


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