Recommendation to stakeholders for the LPG Autogas industry in Nigeria
In my last blog post, I mentioned that I would be dropping some recommendations for the government on what can be done to drive the LPG Autogas industry in Nigeria.
Below are some practical positions we can adopt as a country;
1. Setup a platform for the LPG stakeholders ( Regulatory and private sector) to come up with an Information memorandum on Autogas, that would guide players in the industry and new investors who are looking to do business in the sector. This would complement to NMDPRA guideline for Autogas setup.
2. Provide support to aid the financing for NMDPRA approved Autogas Station, to help actual deployment of Autogas stations nationwide.
3. Provide financing support for citizens who have signified interest in converting their vehicles.
4. Extensive engagement and enlightenment of the populace by activation of a nationwide Awareness and Enlightenment campaign of Nigerians on the Government plan for Autogas and the Benefits to the People.
5. Removal of the high taxes on LPG equipment. Information from players in the industry shows that about 60% of the cost of imported LPG equipment goes into Port duties and levies. The support on CNG should also be transferred to LPG Autogas.
6. Very importantly, the regulatory authorities should be very transparent and reachable. There is currently so much uncertainty among downstream players and intending players about regulatory requirements; the hitch is mainly because the regulatory authorities are not very reachable. Availability of personnel for the monitoring of activities within the industries is required; because of the tendency for abuse of the quality of the goods and services of LPG equipment. We must have enough manpower to check issues that may come with substandard Autogas conversion kits and accessories.