Reason Why FG Plans To Ban Consumer Ownership Of Gas Cylinders -Official Reveals

A few months ago, the Federal Government revealed that it is coming up with a policy that would remove the ownership of Liquefied Petroleum Gas (LPG) cylinders from consumers. Well, a latest report has revealed why the FG is planning to ban the consumer ownership of gas cylinders.

According to an official, the Federal Government’s plan to ban consumer ownership of Liquefied Petroleum Gas (LPG) cylinders is aimed at enhancing safety and deepening cooking gas penetration in the country.

Mr Dayo Adeshina, Programme Manager, National LPG Expansion and Implementation Plan, disclosed this at the Nigeria LPG Summit 2019 on Tuesday in Lagos.

The News Agency of Nigeria reports that the summit was jointly organised by the Nigeria Liquefied Petroleum Gas Association (NLPGA) and Liquefied Petroleum Gas Summit, based in Singapore.

Adeshina said that the government would also continue to support the LPG industry with fiscal policies and incentives to enable the actualisation of its target of five million metric tonnes of LPG consumption by Nigerians in 2023.

The LPG Programme Manager, who represented Vice President Yemi Osinbajo but spoke in his personal capacity, said standardisation of LPG cylinders and safe use in Nigerian homes could only be achieved when ownership rests strictly with dealers and distributors.

He explained that cooking cylinders ought to be recertified periodically, adding that the average life span of a cylinder was 15 years. Adeshina said two investors with the support of the Standard Organisation of Nigeria (SON) had indicated interest to establish recertification plants in the country. He said:

“That is why we need to retrieve some of these cylinders still in circulation because we need to recertify them to ensure that they are safe for usage. The government’s focus is to create awareness through sensitisation campaigns and cylinder injection programme.”

Adeshina said the government would continue to act as an enabler for the LPG industry to thrive and create a market viable for all the players in its value chain.

According to him, Nigeria has made a giant stride in the LPG market with about 70,000 million tonnes per annum (MTPA) in 2007 to 624, 000 MPTA as at September 2019.

He said this was made possible through the removal of five per cent Value Added Tax on LPG and 25 per cent to 30 per cent Import Duty waiver on LPG equipment and appliances.

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Also, Mrs Neasa Hapiak, Director, LPG Summit, said many industry stakeholders were paying attention to the Nigeria LPG market, noting that there should be concrete steps to sustain the business in the country.

Hapiak said this could be achieved with the collaboration of government and LPG industry stakeholders as well as entrenching a culture of safety and training of personnel in the industry.

Earlier in his address of welcome, Mr Nuhu Yakubu, President, NLPGA, said the theme of the summit, ” LPG: Harmonising Development and Growth in Nigeria and Africa,” was very apt. He said:

“There is no better time to discuss the industry imperatives as it relates to the federal government agenda to deepen the safe use of LPG in Nigeria. This can be deduced from facts and figures that speak to the ever dynamic and geometric growth which we have witnessed in the last decade.”