By Ediri Ejoh

The Federal Government has been urged to as a matter of urgency, incorporate the use of propane as a sustainable alternative for off-grid electricity solutions in Nigeria.

Chief of Staff of Oilserv Group of Companies, Mr. Cephalus Wariri, made this known at the just concluded Nigerian Association of Energy Economics (NAEE) conference held at Nicon Luxury Hotel, Abuja.

In his presentation, Wariri who is a PhD researcher in energy economics, management and policy, spoke on the topic, ‘Evaluating the Prospects of Propane-Powered Off-Grid Electricity’, highlighted the vast potential of propane to reshape Nigeria’s energy landscape by providing cleaner, cost-effective, and decentralized power solutions.

According to him, “Nigeria’s persistent energy challenges, which include unreliable grid infrastructure, inefficiencies in power delivery, and escalating operational costs has affected millions of Nigerians.

“Off-grid solutions have emerged as essential for closing the electricity gap, but not all off-grid sources offer sustainable, cost-effective, or eco-friendly options,” however, contrasting propane against traditional diesel generators, which are widely used but contribute significantly to greenhouse gas emissions (GHG) and incur high operational costs due to fluctuating global fuel prices.

Wariri, who presented research co-authored with Prof. Obindah Gershon of the Centre for Economic, Policy, and Development Research (CEPDeR) at Covenant University, underscoring propane’s advantages as an off-grid solution.

He said, “Our study revealed that propane-powered generators could reduce CO₂ emissions by 13.8 percent to 31.1 percent compared to diesel, based on generator-load matching. Also, propane provides notable economic benefits; its generators reduce the Levelized Cost of Electricity (LCOE) by 10.52 percent to 45.25 percent relative to diesel, while the fuel itself is approximately 41.64 percent cheaper per gallon than Automotive Gas Oil (AGO). With these cost savings, propane-powered systems stand out as both a cleaner and more affordable alternative for Nigeria’s off-grid energy sector.”

He explained that propane-powered generators require up to 30 percent less maintenance than diesel systems, which translates to extended equipment lifecycles and lower maintenance costs, thereby enhancing overall reliability.

“However, the transition to propane-powered solutions is not without its challenges. High upfront costs, limited infrastructure, and regulatory barriers currently inhibit widespread adoption of propane, as scaling up will demand investment in refining and distribution networks to ensure propane availability across the country.”

He, however, stressed the role of the government in fostering this transition by implementing favorable policy frameworks, tax incentives, and public-private partnerships to encourage investment in propane infrastructure.

“Streamlining permits and licensing for propane-based power generation, alongside educating the public on its benefits, will be essential in accelerating adoption, as regulatory reforms can create a more conducive environment for private-sector investment and facilitate propane’s integration into Nigeria’s energy mix.”

Environmental, economic benefits

Addressing propane’s alignment with Nigeria’s sustainability goals, Wariri, noted that “As a clean-burning fuel, propane contributes to Nigeria’s nationally determined contributions (NDCs) under the Paris Agreement, reducing the nation’s carbon footprint and supporting climate commitments. From an economic perspective, the research points to positive net present values (NPV) and internal rates of return (IRR) for propane-based electricity projects, particularly when scaled for commercial and residential estates.

“A 10-year project model for these sectors reveals significant cost savings, making propane an attractive option for long-term investment.”

Looking to the future, he outlined the broader benefits of adopting propane for off-grid electricity in Nigeria, adding that with large-scale implementation, propane has the potential to create over 75,000 new jobs across various sectors, from energy production to agriculture, healthcare, and education.