The Nigerian federal government has set a target which aims at
achieving a 40 per cent energy switch from the consumption of Premium Motor
Spirit (petrol), Dual Purpose Kerosene (kerosene) and Automotive Gas Oil
(diesel), to the use of Liquefied Petroleum Gas.

Under this arrangement, efforts are being intensified to promote
the wider use of LPG in households, power generation, auto-gas and industrial
applications. According to the Federal Ministry of Petroleum Resources (FMPR),
government has initiated the LPG Expansion Programme in order to effectively
drive the switch to LPG consumption across the country.

“The LPG Penetration Framework is designed to reduce the national
energy consumption of PMS, DPK, AGO by achieving a 40 per cent fuel switch to
LPG in 10 years. The programme will also promote the wider use of LPG in
households, power generation, auto-gas and industrial applications towards the
attainment of five million metric tonnes domestic utilisation and creation of
an estimated 500,000 job opportunities nationwide in five years.”

The FMPR noted that overall, improvements in the standard and
quality of living in rural communities were also expected for the programme. It
said the LPG Penetration Programme along with the Nigeria Gas Flare
Commercialisation Programme (NGFCP) were components of Nigeria’s intended
nationally designed contributions under the Paris agreement for reducing annual
greenhouse gas emissions by the year 2020.

Notably,
the consumption of Liquefied Petroleum Gas, popularly known as cooking gas, in
Nigeria, increased by 600 per cent in the past two years, which according to
the Minister of State for Petroleum Resources, Ibe Kachikwu, is attributable to
the well-articulated Nigerian Gas Policy. The Nigerian Gas Policy is a very
comprehensive document that sets out the parameters for growth for gas, how local
consumption needs are to be met, what sort of infrastructure is required and
the various segments of business opportunities that exist. It was passed by the
Federal Executive Council and it has been driving the gas sector.