News

March 4, 2025

Stakeholders push LPG as catalyst for economic growth in West Africa

Stakeholders push LPG as catalyst for economic growth in West Africa

By Juliet Umeh

Stakeholders in Nigeria’s energy sector including the Minister of State for Petroleum Resources, Gas, Hon. Ekperikpe Ekpo, have emphasized Liquefied Petroleum Gas, LPG, as a critical driver of economic growth in Nigeria and across West Africa.

At the 6th West Africa LPG Expo, with the theme “LPG as Clean Fuel for Energy Transition in West Africa,” experts and policymakers reinforced the role of LPG in boosting economic development, improving energy accessibility, and fostering environmental sustainability.

Ekpo reiterated the Nigerian government’s commitment to expanding LPG adoption through the Decade of Gas Initiative, a strategic program aimed at making gas a mainstream energy source.

He stated: “The Nigerian government, under the leadership of President Bola Ahmed Tinubu, remains resolute in advancing LPG as a key component of our national energy mix.

“Our Decade of Gas Initiative is driving increased adoption of gas for domestic, commercial, and industrial use, ensuring that energy remains accessible, affordable, and sustainable.”

Recognizing the need for a robust LPG infrastructure, Ekpo called for collaborative efforts between governments and private investors.

He noted: “The adoption of LPG as a clean energy source must be complemented by adequate infrastructure. Nigeria has made significant strides in expanding LPG storage and distribution networks. However, we recognize the need for continued investment in infrastructure across West Africa.”

To encourage this, the government has introduced incentives such as tax waivers on LPG imports and equipment, alongside streamlined importation processes for cylinders and accessories.

Additionally, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, is developing a pricing framework under the Petroleum Industry Act, PIA to stabilize prices and make LPG more affordable.

Also, Senior Technical Advisor to the Minister of Climate Change and Green Economy, Prince Eyamba, speaking on behalf of the Federal Minister of Women’s Affairs, highlighted the health risks of traditional cooking fuels such as wood and charcoal.

Eyamba noted: “Women are the heartbeat of the household and bear the burden of unsafe cooking practices.

To address this, the government has launched the Nigerian Women Clean Cooking Scale-Up and Empowerment Initiative, which aligns with President Tinubu’s Renewed Hope Agenda. This initiative will transition one to five million households to clean cooking solutions through carbon incentives, while also fostering women’s entrepreneurship in the LPG sector.

Representing Lagos State, Permanent Secretary of the Ministry of Energy and Natural Resources, Mrs. Abiola Kosegbe, detailed the state’s pioneering efforts in LPG adoption.

She said Lagos accounts for 40 percent of Nigeria’s energy consumption and has implemented a comprehensive gas policy driven by the Ibile Oil and Gas Corporation, IOGC.

She said: “Initiatives such as the Ecogas programme, which converts public transport to Compressed Natural Gas, CNG, and investments in gas-to-power projects, are central to the state’s energy strategy.

She stated that the case for LPG adoption is urgent and compelling while referencing the high number of deaths caused by indoor air pollution from inefficient cooking fuels.

She said: “Lagos State is actively attracting investors and promoting public-private partnerships to expand LPG infrastructure and improve last-mile distribution.”

Similarly, Second Vice President of the Nigerian Gas Association, NGA, Olufisayo Duduyemi, stressed the need for regional collaboration.

He said: “As a region, we must foster greater collaboration between governments, businesses, and industry players to develop a unified approach to LPG adoption and market expansion.”

Highlighting the rapid growth of LPG consumption in Nigeria, which surged from 50,000 metric tons in 2007 to over 1.3 million metric tons in 2023, Duduyemi said that despite this progress, challenges such as affordability, infrastructure gaps, and policy inconsistencies still hinder widespread adoption.

In his opinion, Deputy Managing Director of the World Liquified Gas Association, WLGA, Michael Kelly echoed these concerns, noting that while LPG offers a viable alternative to traditional fuels, significant barriers remain.

“LPG holds immense potential in transforming the energy landscape across West Africa. However, infrastructure limitations, affordability issues, and policy inconsistencies must be addressed for the sector to thrive,” he said.

In his presentation, CEO Bharat Tanks and Vessels LLP, Darsh Agarwal a leading Engineering, Procurement, and Construction, EPC, company specializing in bulk import, storage, and distribution terminals, who is the major sponsor of the expo, noted that it is redefining industrial excellence with its cutting-edge solutions. With a legacy spanning more 26 years, the company continues to drive innovation, sustainability, and safety in the oil, gas, and industrial storage sectors.

Darsh Agarwal said: “We don’t just build storage solutions; we engineer trust, safety, and efficiency into every project at Bharat Tanks and Vessels LLP.

“Our expertise in hydrocarbons, industrial gases, and EPC solutions positions us as a trusted partner for industries worldwide.”

With Nigeria leading the push for LPG adoption, the discussions at the West Africa LPG Expo reinforced the fuel’s role in driving economic growth, improving energy access, and reducing environmental pollution.