THE recent report by the National Bureau of Statistics (NBS), which revealed that less than 20 percent of Nigerian households use Liquefied Petroleum Gas (LPG) for domestic, agricultural, commercial, culture, or religious purposes is quite worrisome. It is also astonishing given the prevalence of the use of cooking gas only among many households, especially in the urban centers. The issue is of course manifestation of the multidimensional poverty in the country and how cost and access inhibit households at the lowest economic strata.
Cooking gas comes with a lot of benefits which many people, who were once stuck with stove, firewood and charcoal are now realizing, because cooking gas affords users the opportunity of managing and utilizing time properly. Cooking gas makes cooking faster, saves time, environment-friendly, easy to maintain, allows for less kitchen temperature, and burns with less or no soot.
The NBS report is, therefore, a cause for concern, an indication that majority of the population are now using stove, firewood, kerosene and charcoal with the attendant effects on human health and the ecosystem. Considering the high cost of kerosene, it is probable that most people are now inclined to using firewood thereby depleting the forests resources, as well as damaging the ecosystem.
Despite Nigeria having the largest proven gas reserves in Africa at over 209 trillion cubic feet, which makes the country the 9th largest in the world, it imports 70 percent of its Liquefied Petroleum Gas requirements. Nigeria LPG market faces challenges with prices reaching record high amidst currency fluctuations and supply chain disruptions, and in a bid to curb the surging prices the federal government recently announced a halt to the export of locally produced cooking gas.
The rising prices of cooking gas can be attributed to global market fluctuations. This is because Nigeria imports significant portion of its LPG and the higher cost of importing LPG has directly impacted prices in the country.
Another problem is the fluctuating value of the naira against major international currencies especially the US dollar. The challenges of naira devaluation has made the price of LPG and other commodities to go up.
The demand for cooking gas has increased overtime due to its clean burning properties and government encouragement for its use over fossil fuels. However, with limited local supply, the country depends on imports to bridge the gap which further exposes prices to global market trends. Logistics and infrastructure needed for efficient LPG distribution across Nigeria are still underdeveloped. The constraints include inadequate storage facilities, poor transport networks, and high transportation costs, particularly for delivering gas to remote areas is a contributory factor to the rising cost of cooking gas.
To urgently address the challenges of limited usage of cooking gas in the country, it requires not only halting of export of the product, there is a need to encourage investment in LPG infrastructure to improve accessibility and affordability, particularly in rural and underserved areas. Government should implement policies and incentives to promote the use of LPG as a cleaner alternative to traditional fuels, to reduce environmental pollution and improve public health.
Considering the widespread use of fuel wood and other fossil fuels orchestrated by the limited use of gas, we urge the government to be committed to the promotion of tree planting initiatives and encourage the adoption of clean energy such as LPG, to help mitigate environmental issues like air and water pollution, climate change, thermal pollution and waste disposal. Efforts should also be geared towards facilitating the establishment of more LPG stations and promotion of local production of gas cylinders and related accessories to enhance value.
With the highest gas reserve in Africa, Nigeria has no reason to be importing gas. The government should take urgent steps to address the challenges faced by the LPG market especially in the areas of logistics and infrastructure for efficient LPG distribution. There is also the need to improve the transport networks, while investors should be encouraged to venture into LPG bulk storage, LPG trucks and LPG skid to enhance accessibility and affordability.
