By Seyi Babalola
NIPCO Plc has unveiled its plans to improve the penetration of Liquefied Petroleum Gas (LPG), otherwise known as cooking gas in rural areas across the country.
The Managing Director, NIPCO Plc, Mr. Suresh Kumar, who disclosed this at the 13th NLPGA conference in Abuja, said the company plans to improve penetration in rural areas by 50 skids.
Speaking on.the theme Pathway to Rural LPG Penetration : Boosting Usage said with about 90% of LPG usage in the urban areas, the rural areas recorded just 10% of cooking gas usage. Hence, the need to deepen LPG usage in the rural area.
Kumar enjoined the Federal and State governments to help provide the basic infrastructure to rural consumers and work with local governments of the concerned areas to help create awareness and needful sensitization.
He noted that Nigeria has an untapped market of about 20 million households for the rural community alone which equates to about three million tons of gas yearly
Reeling out the company’s efforts towards utilising Nigeria’s abundant gas resources to the benefit of the populace, he said the company has invested over $100 million in LPG value chain and boasts of 11,000 MT Coastal storage, over 100 skids and bottling plants across Nigeria with over 125 LPG tankers for logistics.
As part of its Corporate Social Responsibility, he said the company has also donated several gas accessories to boost usage across the country.
Kumar highlighted the hurdles to gas agenda as; lack of knowledge and safety awareness about product, usage, and safe handling.
Others are: Psychological barriers and fear, resistance to change, cooking and eating habits, misconception of taste and quality of food cooked on LPG; availability of cheaper fuels such as wood, saw dust and charcoal.
He identified affordability as another challenge as higher product cost (Installation/Accessories cost and refill price compared to other fuels) and low seasonal income levels affect consumers.
Kumar said the poor road conditions and underdeveloped infrastructure, including lack of distribution channel are major hindrances to adoption of LPG in the country.
He also noted that uncertainty in government policy on subsidy is causing setback to investment in LPG.
