The multi-million dollars local gas cylinder manufacturing sub-sector in Nigeria is facing the rocks, threatening geometric growth recorded in the Liquefied Petroleum Gas (LPG) also known as cooking gas sector.
The difficulty buoyed by Federal Government’s inaction to end over N1 trillion average annual investments on fuel subsidy has, according to the Nigerian Liquefied Petroleum Gas Association (NLPGA), created a shortfall of 49 million cylinders in the system. President of NLPGA, Nuhu Yakubu, who confirmed the “dangerous trend” on the side-line of a press conference, registered the displeasure of stakeholders in the cooking gas sector with fuel subsidy.
“Many local cylinder manufacturers have closed shops, regrettably due to the way government is handling the energy mix. The inability of government to deregulate the premium motor spirit (PMS) also known as petrol, has made it to keep wasting scarce resources on fuel subsidy, while it keeps expending scarce resources yearly to import LPG cylinders from Turkey, China, India and other Asian countries.”
Source: New Telegraph