NEWS
Cooking Gas Demand Crashes Amid Rising Prices
Demand for Liquefied Natural Gas (LPG) popularly known as cooking has dropped to a record low across the country, according to findings.
Market reports showed that consumers had lately either reduced consumption or ditched the commodity for cheaper alternatives such as coal and firewood.
President, Nigerian Gas Association, Ed Ubong, said during a downstream event in Lagos that national annual consumption was currently between 1.
3mn and 1.5mn metric tons from the Federal Government’s annual target of 5mn metric tons.This brings to fore the achievement of President Buhari’s National Gas Expansion Programme which seeks to deepen local gas usage within the next decade.
Executive Secretary, Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), Bassey Essien, confirmed the drop in demand.
According to him, the price of 20 metric tons of cooking gas as of Tuesday shot up from N12m to N12.8m.
“Prices have been volatile for a while, and it’s because the purchasing power has dropped. Gas is no longer affordable, and buyers are either regulating use or found alternatives. As at today, a 20-metric-ton of gas sells for about N12.8mn. Price has hovered around 10mn-12mn before now. Just imagine what we bought last for N12m, rising by N800, 000 for one truck,” he said.
While speaking during one of the technical sessions on the topic, ‘Gas as a catalyst for sustainable economic development- The role of Nigerian Content’, at ‘The Nigerian Content Midstream and Downstream Oil and Gas Summit 2022’ organised by the Nigerian Content and Development Monitoring Board, NCDMB in Lagos on Tuesday, gas stakeholders unanimously agreed that national gas consumption was currently very low. They expressed worry over the dwindling purchasing power of Nigerians. They, however, did not state what current actual consumption or demand was when compared to figures already quoted by Ubong.
The MD/CEO, TECNO Gas Ltd, Nkechi Obi, during the panel session, said gas pricing was one of the reasons for low demand across the country.
“Currently, gas demand is getting very, very low across the country, and this is due to high gas pricing”, she said, adding that lack of government policy to drive demand also formed part of the reason demand was abysmally low.
She urged the Federal Government to intervene in terms of formulation of policy and funding to drive up demand, adding that gas was a developmental commodity.
Findings showed that between 55-60 percent of gas utilised in Nigeria is currently being imported by independent marketers, while the Nigerian Liquefied Natural Gas Limited (NLNG) supplies just 40 percent.
Nigeria has been described as a gas country with approximately 207 trillion cubic feet (Tcf) of proven gas reserves, ranking 9th in the world and accounting for about 3 per cent of the world’s total natural gas reserves of 6,923 Tcf. Nigeria has proven reserves equivalent to 306.3 times its annual consumption.
Natural gas is estimated as the fastest growing fossil fuel in the world, and is projected to overtake coal by 2030, as the second largest source of energy.
The Federal Government said in April,that the value of Nigeria’s proven gas reserves of about 206.53 trillion cubic feet was over $803.4tn.
Ubong said Nigeria needed to deepen domestic production of gas to bring down prices and increase local consumption, adding that affordability was being threatened.
“When gas is imported, then, international pricing will also apply because you will have to add freight charges and import duty to the price. All these added together will definitely push prices up. You will also need to factor in the issue of FOREX. Getting Forex to import products is also very scarce”, he said.
A March 2022 LPG, Propane and LNG supplies- its latest report obtained from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) – puts local supplies for the month at approximately 67, 000 metric tons (MT), while total for both import and local was put at approximately 129, 000 metric tons. Local supply for February was put at 47, 000MT, but total local and import supply was put at 77,000MT.
The National Bureau of Statistics, NBS, said in its latest report that the average price for refilling a 5kg cylinder of cooking gas stood at N3800 in April 2022, from N3778 recorded in March 2022, showing an increase of 0.59 percent month-on-month.
However, on a year-on-year basis, the average retail price for the product increased by 83.67 percent from N2069 in April 2021.
According to state profile analysis, the highest average price for refilling a 5kg cylinder of cooking gas was recorded in Gombe with N4337.50, followed by Bayelsa with N4250.00 and Adamawa with N4220.00.
On the other hand, Yobe recorded the lowest average price with N2931.83. This was followed by Sokoto and Zamfara with N3000 and N3250 respectively.
In addition, prices analysed by zones showed that the average retail price for refilling a 5kg cylinder of cooking gas was highest in the South-East with N4041, followed by the South-South with N3896, and North-Central with N3836, while the North-West recorded the lowest average retail price of N3573.
The average price for refilling a 12.5kg cylinder of cooking gas increased to N8164 in April 2022, from N7617 in March 2022, representing a 7.18 percent month-on-month increase.
Similarly, on a year-on-year basis, the average retail price for refilling a 12.5kg cooking gas increased by 89 percent from N4318 in April 2021.
The state comparisons showed that the highest average retail price for the refilling of a 12.5kg cylinder of cooking gas was recorded in Oyo with N8931, followed by Bayelsa with N8917, and Ogun with N8767. Conversely, the lowest average price for the refilling of a 12.5kg cylinder of the product was recorded In Yobe with N6619, followed by Borno and Ebonyi with N6800 and N7711 respectively.
The average retail price of a 12.5kg cylinder of the product by zones showed that the average retail price was highest in the South-West with N8573, followed by the South-South and South-East with N8253 and N8240 respectively.
The North-East Zone recorded the lowest price with N7559.
With Nigeria’s out-of-school children figure still high at 18.3 million, an international charity has initiated fresh moves to tackle the syndrome.
The Ibironke Adeagbo Foundation (IAF), based in England, said it was determined to contribute significantly to tackling the crisis.
IAF had been campaigning for intensified efforts to tackle out-of-school syndrome in Nigeria, where UNICEF and UNESCO have reeled out huge figures of out-of-school children from year-to- year.
In a statement on Friday, the Founder of the foundation, Mrs Ibironke Adeagbo, said the fresh initiative was to support the Renewed Hope Agenda of the Federal Government.
Adeagbo said the foundation was working on what she described as a “roadmap” to be unveiled by the foundation this month to tackle the problem and salvage early-child education in Nigeria.
According to her, the foundation has come out in full force to support the Federal Government to overcome the syndrome.
“With over 18 million children out-of-school, Nigeria’s education landscape faces an unprecedented crisis.
“The nation’s economic and social future depends on our collective commitment to quality education,’’ the British-born Nigerian, who resides in London, said.
She said Nigeria’s education system was grappling with challenges, including inadequate infrastructure and under-funding.
“The foundation is committed to driving actionable solutions at this point in time because we must secure a brighter future for our out-of-school children and Nigerian education in general.
“Education is the cornerstone of development and progress,” Adeagbo added.
Adeagbo disclosed that an international summit on education had been slated Nov. 26 to ignite discussions on how to over the challenge.
“We cannot afford to overlook the urgent needs of the education sector,” she said.
She said that the summit tagged: “Street to School: A Tech-Based Solution to Address Nigeria’s Education Crisis’’ would ignite critical discussions that would lead to substantial and measurable changes in Nigeria’s education landscape.
Adeagbo called on the Federal Government to increase budgetary allocation to education in line with UNESCO’s recommendation of 15 per cent to 20 per cent of the total budget.
She also called for strengthening of partnerships with civil society groups to fund educational initiatives aimed at tackling various problems in the education sector, especially the out-of-school challenge.
Adeagbo said that Nigeria should implement initiatives targeted specifically at marginalised groups, including girls, children with disabilities and those from low-income families.
The IAF founder stressed the need for the government to utilise technology to boost learning opportunities, especially in remote communities and unserved areas.
Adeagbo added that Nigeria should give priority attention to training of teachers to equip them with skills to deliver quality education.
“We believe that Nigeria can establish a sustainable and inclusive educational framework that will leave no child behind,’’ she stated.
Report says that insecurity caused by terrorism, banditry and kidnapping plaguing Nigeria for years, contributed much to out-of-school syndrome in the country.
However, the Federal Government has been fighting to stamp out the negative activities to allow children to have unrestricted access to the classrooms. (NAN)
The Kaduna State Government plans to spend N93 billion over four years for the rehabilitation of the water sector in four tranches to address the neglect the sector has suffered over the past 10 years.
Ibrahim Hamza, the Commissioner for Public Works and Infrastructure, disclosed this during a press briefing on Friday in Kaduna.
Hamza said that Gov.
Uba Sani has directed the payment of all outstanding salaries and wages to the staff of the Kaduna State Water Corporation (KADSWAC), amounting to N800 million.He further disclosed that the staff of the corporation would be put back on the state’s payroll until 2027 when it must have fully stabilised to run as a commercial entity.
The commissioner recalled that the Governor had declared a state of emergency in the water sector three months ago.
Hamza said , ” This led to the appointment of Kabir Rufai as the substantive Managing Director of KADSWAC.
”The corporation will collaborate with the local governments to maintain generator operations.
”This will strengthen existing water laws to support corporate employment policy.”
He said that the state was investing heavily in the rehabilitation and retrofitting of all water treatment plants and distribution mains, with an emphasis on sanitation and hygiene
Hamza said, “The N93 billion will be invested in four installments, starting with N17 billion this year.
“N35 billion will be invested next year, N30 billion will be invested in 2026 and N11 billion will be invested in 2027.” (NAN)
By Johnson Eyiangho, Abuja
The Governor of Oyo State, Seyi Makinde has called on members of the Peoples Democratic Party (PDP) to fix the internal crisis in the party as the PDP is capable of fixing the country.Makinde, who spoke yesterday at the inauguration of the Board of Governors and Unveiling of Roadmap for the Peoples Democratic Institute (PDI), said that as the nation approaches 2027 for another general election, it was clear that the PDP has the capacity to provide direction for Nigerians.
The Oyo State Governor, who was the special guest at the occasion, asked rhetorically, “What would you want to be remembered for? This is a question every politician who has had to serve at any capacity in our great nation should ask themselves. Because players would come and go.”The situation is so dynamic, but you have to be remembered for something.”From 2019, I’ve been benefitting from PDP. So, I want to say thank you to our great party, and all the stakeholders gathered here today, for giving me the opportunity to get not one, but two mandates, back to back, under this umbrella.”The only thing I can promise you is that since I have fetched water from that well I have been drinking since 2019, I will not pollute the well when it is time for me to exit that position.”The journey to this day has not been all smooth, but I’m thankful that we are able to overcome all the obstacles along the way.”On the PDI, Makinde said that with inauguration of the institute Board of Governors, the PDP is moving a step closer to defining the ideology that the party stands for, and cementing what the party as a whole will want to be remembered for.He said, “Let me especially thank all the people that are members of the party that has put aside grievances, and played a role in the re-establishment and revitalisation of the PDI” recalling that the institute was formed during the administration of President Olusegun Obasanjo.”So, one will take a pause and say okay, what happened during the 16 years of PDI in power nationally? “You can see that with the PDI, there is a pivotal rule, and during those years, we can rightly refer to as the golden years, because since we are working through the plan, we got debt forgiveness, we were interacting with everybody around the world, we were not in pariah relations,” he said.He called on members to rally round the party and set aside their differences, saying there was need for true reconciliation and unity to wrestle power from the APC in Ondo State, whose governorship election has been slated for November 16, 2024.In his contribution, former Senate President, Dr. Bukola Saraki, noted that parties are built on ideas, philosophies and policies, stressing the need to move away from building ideas on self and ambition.Sakari said: “We cannot have an ambition if we don’t have a party. We cannot have a party if we don’t have ideas. This is where it starts from. This is the foundation that is important. “Let us desist from talking about who is running for councillor, or who is running for governor, or who is running for president in 2027. Let us talk about what PDP is. What does PDP represent? What are the issues and policies that we must take into account?”This is what is important for us. This is what Nigerians outside want to know. This is what is important.”Earlier the Acting National Chairman of the PDP, Amb Umar Damagum ,who was represented by the party’s National Organising Secretary, Hon. Umar Bature, said there needed to reposition and unite the party to play its opposition role.
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