#Nigeria: #Demystifying Cooking Gas.... Despite its huge socio-economic benefits, many Nigerians have found it difficult switching from kerosene and firewood to cooking gas but the recent initiative of Oando Marketing Plc seems to be changing the situation. Due to the huge gas resources available to Nigerians, stakeholders in the Oil and Gas industry have consistently mounted pressure on government to tap into the opportunities to enable an average Nigerian have access to Liquefied Petroleum Gas, rather than rely on crude means of cooking. In a recent interview with THISDAY, the Managing Director of Falcon Petroleum Limited, Prof. Joseph Chukwurah Ezigbo, had expressed concern over the nonchalant attitude of relevant authorities to the development of the sector. He didnt only disagree with the continuous flaring of gas but blamed the government and the International Oil Companies (IOCs) for the abnormal situation. There is no reason why this country should be flaring close to $2.2 billion every year. It doesnt make sense. Go to Anambra alone, we have 128 industries that are dying to use gas to power their operations. They work today; tomorrow they dont work because there is no power. Go to Lagos, we have gas in Ikorodu, Agbara, Ota, Shagamu, Abeokuta and Ogijo, among others, but the industries dont see gas, he said. According to available statistics, poor households in neighbouring countries like Republic of Benin and Ghana are already using gas for everyday cooking, while Nigerians on the other hand have relied solely on either kerosene or firewood, which is believed to have negative environmental and health effects. Agitation In recent times, the ugly situation has become a serious headache for stakeholders in the industry, especially the Nigeria LP Gas Association, Nigerian Association of LPG Marketers, Liquefied Petroleum Gas Retailers Association of Nigeria, and individual LPG companies such as NIPCO Plc, Oando Marketing Plc, Banner Gas and Techno Oil, among others. To address the situation, the Lagos state government recently inaugurated the Eko Gas initiative in partnership with private operators to enhance LPG usage among the over 20 million Lagos residents. Experts have largely blamed the federal government for not having a policy to drive LPG consumption, saying countries such as Brazil and Morocco, where LPG consumption is high, made much progress riding on deliberate government policies. Oando Intervention Oando Marketing Plc, a subsidiary of Oando Nigeria Plc made a giant stride towards breaking the barrier for low income earners to have access to cooking gas recently, with its partnership deal with some Micro Finance Banks (MFBs). Through the initiative, the company signed a Memorandum of Understanding (MoU) with the National Association of Microfinance Banks with a view to encouraging mass use of cooking gas in the country. According to a statement obtained by THISDAY in Lagos, some of the MFBs participating in the scheme include Foresight MFB, Lake MFB, Channel MFB, Esusu MFB, Capstone MFB and Infinity MFB. Others include Sunrise MFB, Acute MFB, Strong Alliance MFB and Global Initiative MFB, among others. The most significant aspect of the MoU is that low-income earners can now own the O-Gas 3-in-1 cylinder by approaching any of the micro finance banks with only N200 as an initial deposit and walk away with the complete set of portable 3kg O-Gas. The 3-in-1 is an integrated cylinder, gas and burner certified safe for use by the Standards Organisation of Nigeria (SON). Right Target The Chief Executive Officer, Oando Marketing Plc, Mr. Abayomi Awobokun, who signed the agreement with the MFBs, said the 3kg cylinders were targeted at low-income earners. He explained that such consumers would be expected to make a N200 daily deposit with any of the partnering micro finance banks for 30 days until they would have completed the payment cycle for the cylinder. The introduction of the portable 3kg O-Gas cylinder is aimed at addressing both issues of affordability and accessibility to LPG by the low-income masses. This integrated offering also suits the purchasing power of this socio-economic group as customers can refill with any amount they can afford per time through the companys Pay-As-U-Gas metering system or swap the cylinders for an outright refill at N800, Awobokun said. Budding Partnership Commenting further on the partnership, the Head of Marketing Communications, Oando Marketing Plc, Mr. Seun Soyinka, described the initiative as consistent with the companys plan to switch millions of Nigerians from the use of biomass to clean, efficient, affordable and sustainable LPG via Oandos 3kg O-Gas, an integrated offering that comes with a cylinder, burner and gas. According to him, the O-Gas cooking stoves are directly available to end-users via the companys existing vast network of over 500 retail stations and a growing network of authorised distributors. He explained that Oando Marketing, through the selected micro finance banks, had started developing a tertiary network of retailers that would ensure that the 3kg O-Gas was available within 10 minutes to every end user. Visible Benefits The Chairman, National Association of Microfinance Banks, Lagos State chapter, Mr. Valentine Whensu, said the benefits of the scheme included the provision of a cleaner and safer fuel option for lower income households, reduction of indoor air pollution that causes significant health problems, a decline in carbon emissions caused by dirty fuels, and a decrease in the rate of deforestation in Nigeria. The Vice-Chairman, South-west Zone, National Association of Micro Finance Banks, Mr. Olusegun Olusoga, was quoted as saying that the scheme was aimed at the grassroots, the low and medium level income earners in particular. He said, Our expectation is that we would further improve on the targeted market and also expand our coast and grow our revenue base too. The set objectives would be met, because they would be well informed about the health hazards inherent in the use of firewood and charcoal. Apart from the aforementioned advantages, they are expected to have economic advantage of the new process of cooking now and also in the long run. Olusoga, who doubles as the Managing Director/Chief Executive Officer, Iwade Micro Finance Bank Limited, said the feedback from member micro finance banks had been very encouraging, saying those that had yet to be in the scheme were seriously willing to join. Gas for All Many analysts believe that Nigerias gas reserves far outweigh the crude reserves, and that the former portray a much bigger source of revenue for the country, if only gas flaring can be curbed and the resource can be harnessed for both local consumption and export purposes. There is no gainsaying the fact that any average citizen and consumer would prefer clean gas to kerosene and firewood for obvious reasons, but the issues of affordability and availability must also be considered. In a country where millions of citizens go to bed hungry on a daily basis, one cannot talk of gas usage without considering the overall picture of enhanced standard of living, which would in turn increase the consumers purchasing power. That is the crux of the matter.
Posted on: Fri, 22 Nov 2013 18:24:52 +0000
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