NNPC Collaborates With PayGas To Enhance Access To Affordable Cooking Gas Throughout Nigeria

By Oluwabukola Jimoh ــ Last Update 28 June 2024

In a significant development for Nigeria's energy sector, the Nigeria National Petroleum Corporation (NNPC) Limited has entered into a strategic partnership with South African gas company PayGas to enhance the availability of affordable Liquefied Petroleum Gas (LPG) in semi-rural areas across Nigeria. This initiative aims to provide accessible and cost-effective clean cooking fuel, thereby improving living conditions and reducing reliance on less sustainable energy sources.

As one of Africa's top producers of natural gas, Nigeria relies heavily on LPG for household cooking. The increasing demand for LPG has led to significant price hikes, putting financial strain on many households. According to the National Bureau of Statistics (NBS), the average retail price of 5kg LPG increased by 13.75% from N6,521.58 in April 2024 to N7,418.45 in May 2024. Over the past year, the price has surged by 70.12%. This upward trend risks pushing vulnerable populations towards using firewood or other 'dirty' energy sources, which are detrimental to health and the environment.

The project aims to address these challenges by deploying Micro-Filling Plant (MFP) solutions to make LPG more accessible in semi-rural areas, implementing a pay-as-you-go model to make LPG affordable for lower-income households, and promoting the use of clean energy to reduce environmental impact and improve public health. To formalize this partnership, a Memorandum of Understanding (MoU) was signed on June 21, 2024, by Huub Stokman, Managing Director of NNPC Retail Ltd., and Philippe Hoeblich, CEO and Co-founder of PayGas, following a strategic meeting with stakeholders from NNPC Retail Limited (NRL), PayGas, and the Oil Sustainability Programme (OSP) from Saudi Arabia.

Following the successful meeting, the NRL management led delegations on site inspections of proposed locations for Micro-Filling plants in various semi-rural areas. This collaboration aims to rapidly deploy MFP solutions using modern technology to enhance LPG distribution and utilize PayGas's pay-as-you-go system to manage energy expenses effectively for households. In addition to providing strategic direction and logistical support, NNPC Limited will offer the land needed for these facilities. PayGas will supply and manage the MFP technology, overseeing the implementation of the pay-as-you-go system. The Oil Sustainability Programme will contribute insights and expertise on sustainable energy practices.

This partnership is expected to yield several positive outcomes, including enhanced LPG accessibility for households in semi-rural areas, a reduction in the use of firewood and other polluting energy sources, lower household energy costs due to the pay-as-you-go model, and the creation of jobs and business opportunities through the establishment of MFP facilities. Environmental and health improvements are also anticipated, with a decrease in harmful emissions from traditional biomass fuels and improved air quality and health outcomes for rural populations.

We at LPG in Nigeria believe that this project reveals the potential of public-private collaborations in driving sustainable energy solutions and enhancing the quality of life for millions of people in Nigeria. By leveraging innovative technology and a flexible payment model, this initiative aims to make LPG both accessible and affordable for semi-rural populations, thereby enhancing economic, environmental, and health outcomes across the region.

What do you think? Please feel free to comment and reach out to us for discussion on LPG related topics.

Also, visit our marketplace at https://lpginnigeria.com/market-place to sell all of your LPG related appliances.

Source: NAIRAMETRICS

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Oluwabukola Jimoh

Oluwabukola Jimoh is a dynamic academic writer and captivating energy blogger. She is able to delve into intricate subjects with an insatiable thirst for knowledge, crafting thought-provoking essays that engage and enlighten her readers.