How to deepen rural LPG penetration in Nigeria- NIPCO Boss
The Managing Director of NIPCO Plc, Suresh Kumar, has advocated the need to deepen the use of Liquefied Petroleum Gas through improved penetration into rural areas in Nigeria.
Liquefied Petroleum Gas consumption in Nigeria, is still low, and at variance with the country’s increasing population of the country.
Kumar said about 90% of LPG usage is in the urban areas, with just 10% in the rural areas.
Nigeria, he said, has an untapped market of about 20 million households for the rural community alone which equates to about 3 million tons annually
He spoke at the 13th NLPGA conference in Abuja on:” Pathway To Rural LPG Penetration in Nigeria.
He disclosed that NIPCO plans to improve penetration in rural areas by 50 skids with the next 24 months.
He also said his company has invested massively in LPG value chain, through 11,000 MT coastal storage, over 100 Skids and bottling plants across Nigeria, over 125 LPG tankers for logistics
His company further donated gas accessories to boost usage across the country, he said.
He identified creation of LPG awareness and cost-effective distribution channel, as well as overcoming psychological barriers as challenges for LPG marketers in Nigeria.
According to him, lack of knowledge/safety awareness, psychological barriers, availability of cheaper fuels, reach and uncertainty over government policies are hurdles for consumers of cooking gas.
He implored the federal government to help provide the basic infrastructure to rural consumers and work with LG of the concerned areas to help create awareness/sensitization.
He emphasized the need for low-cost distribution through Rural Mobile Vehicles, adding that the federal government should improve program especially in the areas of gas infrastructure.
