Against the backdrop of the federal Government’ of Nigeria renewed policy of repositioning the Oil and Gas
sector, the Minister of Petroleum Resources, Dr. Rilwanu Lukman has directed that by January 1, 2010, all bulk
sales of lubricants to retailers must stop nationwide just as he disclosed that the Federal Government has
fashioned out a new strategy for the development of the LPG market in the country because the domestic gas
utilization in Nigeria remains abysmally low.
In an address to the Ministerial Committee charged with the responsibility of sanitizing the lubricant market, the
Minister disclosed that the Department of Petroleum Resources (DPR) has already been directed to ensure
that all marketers comply with this directive and DPR is also to ensure that all lubricant dispensing tanks are
disposed of appropriately. He equally revealed that any marketer who fails to comply will be made to face the
full wrath of the law.
Speaking further, the minister explained that the directives were in the nation’s interest as it had become
necessary to protect equipment and engines in machineries against unwholesome handling of base oils
which serve as raw materials for lubricant production. He opined that the adulteration of lubricants lead to
damage to machinery and equipment.
Dr. Lukman therefore said it was imperative for Government to address these issues in order to safeguard the
lifespan of engines and equipment which are used for production of the nation’s wealth. He also noted that the
unwholesome disposal of these lubricants by some retailers posed danger to the environment and ultimately
could endanger human health in the long run.
The Ministerial Committee made up of representatives from Department of Petroleum Resources (DPR),
Standard Organization of Nigeria (SON), major and independent lubricant manufacturers, Automotive
Technicians association and the lubricants marketers with a view to provide a comprehensive and holistic
solution that will move the market forward. In line with its mandate, the Committee would soon embark on an
awareness campaign to educate the public on the expected changes in the market.
The Minister who also addressed First Nigerian Summit on Liquefied Petroleum Gas (cooking gas) at another
forum in Abuja disclosed that the Federal Government has fashioned out a new strategy for the development of
the LPG market in the country because the domestic gas utilization in Nigeria, particularly the LPG remains
abysmally low.
Dr. Lukman revealed that the new initiative is premised on the primary objective of incorporating LPG in the
nation’s energy mix with a view to using it as the main driver of our new deregulation policy in the downstream
sector. The new plan according to him will result in growing LPG consumption in the country from the current
low level of about 80,000 MT per annum to over 5,000,000 (five million) MT per annum in the next five years.
In his presentation, Dr. Lukman noted that LPG is an important component of the energy mix of many countries
in the world. In Nigeria, particularly in the late eighties/early nineties, demand grew rapidly from 34,000 metric
tonnes in 1980 to about 129,000 metric tonnes in 1990. Subsequent years however witnessed significant
decline at an average of about 13% per annum, reaching a trough of 43,000 metric tonnes currently. LPG is
used mostly in Nigeria as a domestic cooking fuel. The per capita annual consumption for the country is put as
0.5kg which is believed to be the lowest in the West African sub-region, which has an average of 3.7kg. The low
per capita LPG consumption in Nigeria, reputed as one of the lowest in Africa, is an issue of great concerns to
the Government.
The Minister stated that Government’s efforts at addressing the poor situation had necessitated the need to
provide the substitution of gasoline and household kerosene with AUTO LPG and HOUSEHOLD LPG
respectively and eventually for power generation. In his reasoning, the present scenario where there is over
reliance on one or two products in the energy mix had deprived Nigerians of the immense benefits latent in the
production of the nation’s hydrocarbon.
In achieving the set target for the growth of the LPG market, the Federal Government, the Minister said, has
directed that a percentage of export of LPG production from the NLNG, NNPC/Chevron and NNPC/ExxonMobil
joint venture NGL Plant in Bonny River Terminal be set aside for the domestic market. This should be in
addition to other sources of LPG production through the local refineries, large scale gas extraction plants and
accelerated gas extraction projects targeting stranded fields.
The Minister also disclosed that from the marketers’ side, Government would introduce a new set of incentives
which would target infrastructural development expected to encourage private investments in storage terminals,
jetties, refining plants and local manufacture of LPG cylinders and accessories. This, he said, should boost the
local consumption of cooking gas in the country. He therefore enjoined private investors to utilize the
opportunities being offered by Government through this news strategy to grow the LPG market.
sector, the Minister of Petroleum Resources, Dr. Rilwanu Lukman has directed that by January 1, 2010, all bulk
sales of lubricants to retailers must stop nationwide just as he disclosed that the Federal Government has
fashioned out a new strategy for the development of the LPG market in the country because the domestic gas
utilization in Nigeria remains abysmally low.
In an address to the Ministerial Committee charged with the responsibility of sanitizing the lubricant market, the
Minister disclosed that the Department of Petroleum Resources (DPR) has already been directed to ensure
that all marketers comply with this directive and DPR is also to ensure that all lubricant dispensing tanks are
disposed of appropriately. He equally revealed that any marketer who fails to comply will be made to face the
full wrath of the law.
Speaking further, the minister explained that the directives were in the nation’s interest as it had become
necessary to protect equipment and engines in machineries against unwholesome handling of base oils
which serve as raw materials for lubricant production. He opined that the adulteration of lubricants lead to
damage to machinery and equipment.
Dr. Lukman therefore said it was imperative for Government to address these issues in order to safeguard the
lifespan of engines and equipment which are used for production of the nation’s wealth. He also noted that the
unwholesome disposal of these lubricants by some retailers posed danger to the environment and ultimately
could endanger human health in the long run.
The Ministerial Committee made up of representatives from Department of Petroleum Resources (DPR),
Standard Organization of Nigeria (SON), major and independent lubricant manufacturers, Automotive
Technicians association and the lubricants marketers with a view to provide a comprehensive and holistic
solution that will move the market forward. In line with its mandate, the Committee would soon embark on an
awareness campaign to educate the public on the expected changes in the market.
The Minister who also addressed First Nigerian Summit on Liquefied Petroleum Gas (cooking gas) at another
forum in Abuja disclosed that the Federal Government has fashioned out a new strategy for the development of
the LPG market in the country because the domestic gas utilization in Nigeria, particularly the LPG remains
abysmally low.
Dr. Lukman revealed that the new initiative is premised on the primary objective of incorporating LPG in the
nation’s energy mix with a view to using it as the main driver of our new deregulation policy in the downstream
sector. The new plan according to him will result in growing LPG consumption in the country from the current
low level of about 80,000 MT per annum to over 5,000,000 (five million) MT per annum in the next five years.
In his presentation, Dr. Lukman noted that LPG is an important component of the energy mix of many countries
in the world. In Nigeria, particularly in the late eighties/early nineties, demand grew rapidly from 34,000 metric
tonnes in 1980 to about 129,000 metric tonnes in 1990. Subsequent years however witnessed significant
decline at an average of about 13% per annum, reaching a trough of 43,000 metric tonnes currently. LPG is
used mostly in Nigeria as a domestic cooking fuel. The per capita annual consumption for the country is put as
0.5kg which is believed to be the lowest in the West African sub-region, which has an average of 3.7kg. The low
per capita LPG consumption in Nigeria, reputed as one of the lowest in Africa, is an issue of great concerns to
the Government.
The Minister stated that Government’s efforts at addressing the poor situation had necessitated the need to
provide the substitution of gasoline and household kerosene with AUTO LPG and HOUSEHOLD LPG
respectively and eventually for power generation. In his reasoning, the present scenario where there is over
reliance on one or two products in the energy mix had deprived Nigerians of the immense benefits latent in the
production of the nation’s hydrocarbon.
In achieving the set target for the growth of the LPG market, the Federal Government, the Minister said, has
directed that a percentage of export of LPG production from the NLNG, NNPC/Chevron and NNPC/ExxonMobil
joint venture NGL Plant in Bonny River Terminal be set aside for the domestic market. This should be in
addition to other sources of LPG production through the local refineries, large scale gas extraction plants and
accelerated gas extraction projects targeting stranded fields.
The Minister also disclosed that from the marketers’ side, Government would introduce a new set of incentives
which would target infrastructural development expected to encourage private investments in storage terminals,
jetties, refining plants and local manufacture of LPG cylinders and accessories. This, he said, should boost the
local consumption of cooking gas in the country. He therefore enjoined private investors to utilize the
opportunities being offered by Government through this news strategy to grow the LPG market.
Nigeria Government finally barns retail of Bulk Lubricants,
encourages investment and development of cooking gas market
encourages investment and development of cooking gas market
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
