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‎Kerosene subsidy, government policies, others frustrates LPG development

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Fraction of domestic gas require to save N65b on fuel subsidy annually

By Kunle Kalejaye
The Federal Government continuous subsidy on Dual Purpose Kerosene, DPK also known as domestic kerosene and a number of issues have been identify as the clog in the wheel of Liquefied Petroleum Gas, LPG development in Nigeria.
Other issues according to some LPG dealers in Nigeria who spoke with BIZTELLERS in Miami, Florida  in the just concluded 27th World LPGA conference includes‎ lack of infrastructure development, funding, interest rate, lack of banks interest to fund long term projects in the LPG sector.
Others lamented the absent of the LPG market in country regardless of the huge investment made by willing private operators.
These private investors as gathered are now left to develop the LPG market both in rural and urban areas with little or no fund from the federal government.
BIZTELLERS findings revealed that this herculean task embarked upon by LPG investors in the country has left some with little return of investment while others are on the brick to close shop.
Meanwhile some off-takers in the LPG sector also decry the multiple regulation ‎of the industry by different government agencies such as Standard Organisation of Nigeria, SON, Department of Petroleum Resources, DPR, Nigeria Content Development and Mornitor Board, NCDMB among others.
‎These off-takers reiterated that having different government agencies to regulate LPG sector which they described as an emerging market may likely hinder the growth of the sector and scare off potential foreign investors.
 Aside from multiple regulation from government agencies, it was reported that ‎the federal government and the Nigerian National Petroleum Corporation, NNPC illegally spent about $4.5 billion on kerosene subsidy from the federation account without appropriation.
In addition, between 2010 and 2012 which is a period of three years, the federal government also spent N634 billion as subsidy for kerosene which some government officials described as a ‘network of corruption and fraud’.
Worst still, other government officials have described the N700 million being spent daily on kerosene as wasteful.
20 percent of these funds according to some LPG operation‎ is all what is required to transform the sector into a viable and and competitive one.
Commenting on government policies in the sector, President of Nigeria Liquefied Petroleum Gas Association, NL‎PGA, Mr. Dayo Adeshina said no preference is given on LPG imported equipment to ensure duties and tariffs are reduced. 
Adeshina who stated this in the 2014 NLPGA conference in Abuja explained that rather than a downward reduction of duties on imported LPG equipment, there has been a steady increase.
He further explained that the increase has resulted in discouraging the provision of LPG facilities by willing organisation in the sector.
“This sometimes creates a situation whereby the LPG allocated by the government to the domestic market does not fit the quantity of LPG equipment that would facilitate the usage of the allocated LPG, hence there is a slow growth in the industry.
‎”Fabrication of LPG equipment is very expensive due to the lack of stable power and high cost of raw material, labor and generating power for production.
“On the other hand, the duties and tariffs on imported equipment is very high in certain countries (20% – 35%)
“There is no major policy that encourages widely promoted green projects (e.g. auto gas, power generation etc.) using LPG in order to stimulate the rapid growth of the industry,” Adeshina said.
 
Listing other constrains in sector, NLPGA president said ‎there is “no unified policy targeted at LPG development by the governments of W/African countries
“No specific funding has been set aside by governments to encourage the growth of LPG industry via infrastructure development, equipment supplies, etc
“Interest rate for available funds is very high such that it leads to organisations defaulting in re-payments of loans and thereby collapsing
“There is no major government incentive to attract regional financial institutions (ADB ) to assist SMEs in growing the LPG market.‎”
Managing Director and Chief Executive Officer of Nigeria Liquefied Natural Gas, NLNG, ‎Mr. Babs Omotowa who also spoke at the fourth NLPGA conference in Abuja said there has been intervention program embarked upon by NLNG to develop the LPG sector.
‎”In response to supply shortages in the Domestic LPG, NLNG intervened in September 2007 with domestic LPG supply scheme to 6 pre-qualified offtakers. The number of offtakers have increased to 17‎.
‎”The scheme commenced with an annual volume commitment of 150,000mt which was subsequently increased in 2013/2014 to 250,000mt,” he said.
Mr. Omotowa added that‎ the intervention scheme has led to reserved Volumes increased from150,000 Metric Tonnes to 250,000 Metric Tonnes in 2013 due to growing demand.
“‎ Other gains of the intervention includes improved Jetty Availability/Capacity and increased revenue for owners such as Navgas, NIPCO and  PPMC and NOJ.
“Human Capacity Development -Training at Bonny Terminal, increased revenue to Government and Economy such as taxes and levies, and ‎increased Market Awareness – Price, Quality & Quantity,” Mr. Omotowa said.
Despite this intervention scheme and NLNG supply of 80 percent of LPG consumed in the country the NLNG MD admitted that supply still outstrips demand.
‎To help the LPG sector to grow, the NLNG boss suggested that a ‘five point agenda’ must be followed.
The five point agenda include creating awareness by means of advert, media campaigns, branding, workshops, seminars and safety campaign.
Others are granting incentive to suppliers, off-takers, bottling, storage, trucking, retailer, tax holiday and LPG vat removal.
“There should be empowering of consumers, improving existing LPG infrastructure and favourable government regulation,” he said.

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NLNG Change YourStory: Backs Digital Storytelling’s New Era

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No fewer than 40 journalists from print, broadcast, and digital media in Lagos participated in this year’s NLNG Change Your Story training workshop held in Lagos between March 11 and 13.

The workshop, themed “Re-calibrate, Create, Connect,” focused on artificial intelligence in journalism, data visualisation, digital tools for real-time reporting, and ways to combat misinformation.

During the 3-day capacity workshop, participants examined the changing landscape of journalism shaped by AI and digital communication. They also explored how new media technologies can support real-time reporting, extend audience reach across borders, and strengthen engagement on digital platforms.

ALSO READ: NGX Group, IFC, CSCS and WIMBIZ Convene Leaders to Advance Gender Equality at 2026 Ring the Bell Ceremony

Dr. Sophia Horsfall, General Manager, External Relations and Sustainable Development at Nigeria LNG Limited, charged the participants to apply the knowledge gained from the NLNG Change Your Story Capacity Workshop to improve the quality and credibility of their reporting. Horsfall, who spoke on the last day of it, described the workshop as part of NLNG’s broader effort to strengthen engagement with the media and support professional excellence in journalism. She encouraged participants to use the insights gained to improve the depth and credibility of their work.

“NLNG views this engagement as a strategic partnership. We provide the energy that powers nations and generates revenue for our nation; you provide the information that powers our minds. We have been proud to host you, but our pride will only be justified when we see the ‘New Standard’ in your next feature, your next broadcast, and your next investigative report. As you head back to your various stations, I urge you to take the spirit of this workshop with you,” she said.

The intensive programme combined expert-led discussions with practical sessions. Digital Communication specialist Mr. Dan Mason led sessions on digital storytelling, while media trainer Taiwo Obe facilitated a Journalism Clinic focused on newsroom practice and storytelling skills.

Mason described the NLNG programme as a relevant ingredient to grow the foundation for new digital skills among practitioners, noting that the Nigerian media industry is a vibrant sector with many energetic young people. “For me, it’s a really good place to work. I feel strongly that at each training session, people listened. ..It’s really about people going away with a little bit more confidence to say, I’m going to do this. I can do this. And in a way, that’s all you need.

“But, what you have here is the essential ingredient in developing journalism, which is the ability to make mistakes and then learn from them,” he said. He observed that Nigeria has an incredibly high rate of young people with an interest in news. According to him, research around the world shows that Nigeria stands out at the top, having young people who are interested in news.

“They care. In your use of mobile platforms, you are way ahead. People trust journalism and journalists. And while there may be issues with people or younger generations not wanting to look at the news, you’ve got such a great and strong foundation to build upon. So, I see hope and opportunity in Nigeria, though I also see the problems, because I’m a journalist. And I see fantastic opportunities here,” he added.

The Change Your Story initiative, launched by NLNG in partnership with The Journalism Clinic, is designed to strengthen professional capacity in the media industry. Since its launch in 2014, the programme has trained about 400 journalists from print, broadcast, and digital media across Nigeria.

The workshop, which began on Wednesday, concluded on Friday. At the end of the training, all participants were presented with certificates acknowledging their completion of the programme.

Nigeria LNG Limited (NLNG) has reinforced its commitment to strengthening journalism in Nigeria following the successful completion of the second edition of its #NLNGChangeYourStory workshop for 2026, held in Lagos.

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Sahara Group expands fleet with new 40,000 cbm LPG Carrier

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Modupe Asudo

Sahara Group, a leading global energy and infrastructure conglomerate, has commissioned MT Asharami Ghana, a 40,000‑cubic‑metre Liquefied Petroleum Gas (LPG) carrier, expanding its fleet capacity, while strengthening Ghana’s clean energy supply chain and LPG distribution network.

The dual‑fuel vessel improves operational efficiency, enhances supply reliability, and supports lower‑emission LPG logistics as consumption grows across Ghana and the wider sub‑region.

Ghanaian President Mahama and Sahara Executive Directors

Speaking at the commissioning in Ulsan, South Korea, President John Dramani Mahama described the vessel as “a significant milestone in strengthening the infrastructure that underpins the global LPG supply chain,” noting that expanded shipping capacity is critical to improving supply security, reliability and efficiency for countries that rely partly on LPG imports.

He commended Sahara Group, WAGL Energy and all partners involved for their “leadership, technical expertise and strategic foresight,” adding that the project reflects “the power of partnership” in advancing safe, efficient, and responsible energy distribution.

President Mahama wished the MT Asharami Ghana safe sails, expressing confidence that the vessel would inspire further investment and collaboration across Africa’s energy value chain.

According to Wale Ajibade, Executive Director, Sahara Group, the vessel supports Ghana’s clean energy ambitions through integrated infrastructure.

“MT Asharami Ghana is more than a vessel; it is part of a deliberate strategy to strengthen LPG supply security and support Ghana’s clean energy ambitions. It secures an additional 25,000-Metric-tonne stock security for the Ghana economy, alongside the soon to be commissioned 6000-metric-tonee of 12.000-metric-tonne land storage in Tema,” he said.

With the addition of Asharami Ghana, Sahara Group’s LPG carrier fleet now comprises six delivered vessels with a combined capacity of 202,000 cubic metres. Supported by partnerships with WAGL Energy, NNPC Limited and other stakeholders, an additional 270,000 cubic metres of capacity is under construction and due for delivery by September 2028.

Temitope Shonubi, Executive Director, Sahara Group, said Asharami Ghana is part of Sahara’s integrated LPG infrastructure strategy spanning shipping, storage, and downstream distribution globally, including the development of a 12,000‑metric‑tonne land‑based LPG storage terminal in Tema, with a 6,000‑metric‑tonne first phase scheduled for completion in May 2026.

He thanked Yaa Serwaa Alifo, MD of Asharami Ghana, for her resilience and insistence to dedicate a ship of “this magnitude solely to the Ghana Market and its landlocked neighbours.”

Ghana is targeting LPG adoption of 50 per cent of households by 2030, up from about 30 per cent today. Sahara’s investments will support clean energy access for more than 35 million people, while strengthening Ghana’s role in regional LPG trade to neighbouring and landlocked West African markets.

The commissioning comes in Sahara Group’s 30th anniversary year, guided by the Sahara Beyond XXX milestone, underscoring Sahara’s focus on building an enduring enterprise that delivers responsible growth, shared prosperity and long‑term impact across its markets.

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NCDMB reinforces commitment to inclusive energy growth

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By

Modupe ASUDO

The Nigerian Content Development and Monitoring Board has reiterated its commitment to advancing gender inclusion and sustainable capacity development in Nigeria’s oil and gas industry, spotlighting a $20m Women in Oil and Gas Intervention Fund.

The Board made this known at the 3rd edition of the Diversity Sector Working Group’s Women in Oil and Gas Conference and Mentorship Programme, held on March 3, 2026, at Eko Hotels and Suites, Lagos.

The conference, organised in collaboration with the Nigerian Content Consultative Forum, was themed ‘Breaking Barriers, Shaping the Future’, with a strong focus on building bridges and empowering women for a sustainable energy future.

Delivering his goodwill message, the Executive Secretary of NCDMB, Engr Felix Omatsola Ogbe, described women’s empowerment as a strategic lever for strengthening Nigeria’s energy ecosystem, particularly at a time the global industry was undergoing profound structural change.

He explained that the sector’s navigation of energy transition, rapid technological innovation and rising sustainability expectations increasingly requires broader perspectives, adaptive leadership and inclusive participation to remain competitive and resilient.

Represented by the General Manager Midstream PCAD, Ms. Lekoma Phimia, the Executive Secretary framed inclusion not as social advocacy but as sound economics, stressing that diversity consistently delivers measurable performance outcomes across industries.

“Inclusive organisations are more innovative, more resilient and more profitable. When women thrive, industries thrive. When women lead, economies grow. When women are empowered, communities prosper,” he stated.

To illustrate this point, the Executive Secretary referenced the leadership impact of Ms. Oritsemeyiwa Eyesan, Executive Chairman of the Nigerian Upstream Petroleum Regulatory Commission, describing her tenure as clear evidence of women’s capacity to drive sector-wide transformation at the highest levels.

According to him, such leadership exemplifies how competence and inclusion are helping to steer the industry through a period of accelerated change.

While acknowledging the progress recorded, Ogbe observed that systemic barriers had continued to limit the full participation of women across segments of the oil and gas value chain, stressing that addressing the constraints requires deliberate, structured and sustained interventions.

At the centre of NCDMB’s empowerment showcase, the Executive Secretary highlighted the Women in Oil and Gas Intervention Fund, a landmark $20m initiative established in partnership with the Nigerian Export-Import Bank to provide affordable financing exclusively to women-owned businesses operating within Nigeria’s oil and gas sector.

He explained that the fund offers single-digit interest rate loans with repayment tenors of up to three years, targeted at eligible companies with approved industry contracts. According to him, the initiative is designed to accelerate local capacity and enable women entrepreneurs to transition from peripheral participation to ownership and leadership across the oil and gas value chain.

Ogbe further disclosed that a complementary intervention, implemented in partnership with the Bank of Industry, extends structured business training and additional access to capital to women-owned enterprises. He noted that many beneficiaries have expanded from small service providers into competitive vendors now supporting major oil and gas operators nationwide, particularly in logistics and marine services, safety equipment supply and environmental management — segments where female entrepreneurs have historically faced limited access to financing.

Beyond financing, the Executive Secretary highlighted NCDMB-supported skills development programmes executed in collaboration with institutions such as the Petroleum Training Institute and accredited industrial training centres in Rivers and Bayelsa states. He cited the training of women in welding and fabrication, noting that many graduates are employed in fabrication yards and contribute directly to major oil and gas projects.

“These women are earning dignified livelihoods, breaking stereotypes and inspiring a new generation,” Ogbe said, emphasising that collaboration remains critical to scaling impact, citing partnerships with financial institutions, development partners, training institutions and industry stakeholders.

He commended the NCCF Diversity Sector Working Group for sustaining advocacy and dialogue on inclusion. “We must move beyond inclusion towards leadership — more women in technical leadership roles, executive positions and industry boards,” he added.

In her remarks, the Chairman of NCCF Diversity Sector Working Group, Dr Alero Onosode, described the conference as a celebration of progress, leadership and possibility, noting that NCDMB’s sponsorship reflects its strong institutional commitment to inclusion and shared prosperity. She observed that convening the conference in March — International Women’s Day month — was symbolic, coming at a time of renewed activity and reform across Nigeria’s oil and gas industry.

“Alongside this momentum, we are seeing the rise of women into visible and influential leadership roles — regulators, CEOs, directors, engineers and policymakers shaping strategy and transforming spaces that were once dominated by a single voice,” Onosode said.

She explained that the conference theme challenged stakeholders to move from representation to impact, urging deliberate collaboration across sectors, generations and perspectives.

“Building bridges means women and men working together, turning diversity into strength and collaboration into results,” she stated, calling on industry leaders to prioritise mentorship, sponsorship and intentional partnerships.

The conference concluded with a renewed call for inclusive capacity development, with NCDMB reaffirming its commitment to empowering women, strengthening Nigerian content and ensuring that Nigeria’s energy future is sustainable, inclusive and economically transformative.

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