Business

Nigeria, Others Need $7.5bn To Deepen LPG Usage – Refiners

Published

2 years ago

May 9, 2023

To displace charcoal with clean cooking gas, also known as Liquefied Petroleum Gas, would cost Nigeria and other countries in Africa about $7.5bn for downstream infrastructure and stoves, the African Refiners and Distributors Association has said.

It also stated that the continent remained the lowest in per capita consumption despite its huge abundance of gas, stressing that it was high time stakeholders came up with finance strategies and solutions to address the bottlenecks to clean cooking gas usage on the continent.

The Executive Secretary, ARDA, Anibor Kragha, who disclosed this during an LPG virtual workshop by the group, stated that while sub-Saharan Africa had 14.4 per cent of the world’s population, it had less than one per cent of global LPG consumption.

“Many countries have little or no bulk handling facilities,” Kragha stated.

He, however, noted that LPG consumption in Africa had more than doubled since 2010, noting that the consumption recorded 9.7 per cent annual growth rate over the past decade.

He said Nigeria remained the largest LPG consumer, adding that LPG was the fastest growing petroleum product in sub-Saharan Africa.

The Vice President, LPG, Europe, Middle East and Africa at Argus, David Appleton, said cooking gas was critical to energy security in Africa.

He noted that safety, pricing, culture and finance were critical to the growth of the sector in Africa, stressing further that infrastructure development remained a key issue.

Appleton said investors in the sector would definitely expect returns on investments, adding that there must be a way to de-risked investments as much as possible.

He said Africa must think about long term investments and that there was a need for regulatory progress and consistency.

The Senior Associate, Investments, African Finance Corporation, Moussa Dabo, who disclosed at the event that the firm had invested $10.5bn across 36 countries in Africa, said there was need to improve governance and institutions for Africa to attract investments.

Dabo noted that lenders were more comfortable lending to organisations that were willing to establish the best-in-class business practices.

According to him, stability and practicability of cash flow could significantly help reduce cost of financing, while driving more investment into LPG.

“Securing favourable, diversified and long term supply contracts with established global traders is necessary and players in the sector should recalibrate their capital structure before seeking financing,” Debo stated, as he explained that equity injection in the business could help lower financing costs.

Also, in a presentation by Wagl Energy Limited, stakeholders at the company noted that the potential for LPG consumption in Africa could improve if the continent was committed to solving challenges in the areas of gas production that prioritised local market, shipping, storage as well as distribution to other end-users.

The company explained that the inadequate number of LPG vessels owned and managed by sub-Saharan African companies was one of the infrastructure issues facing LPG growth in the region.

It decried the limited LPG storage facilities in the region, stressing that several ports and jetties in sub-Saharan Africa, particularly in places such as Nigeria, also had draft restrictions, with their drafts tending to range between 8 – 8.5m.

The gas firm further noted that of the three challenges, the greatest opportunity was in solving the storage bottleneck, as the sub-Saharan region was suffering from a severe lack of LPG storage facilities.

Business

Naira Appreciates At Official Market

Published

3 weeks ago

May 24, 2025

Editor

The Naira, which has seen steady appreciation against the Dollar all week, closed stronger on Friday, trading at ₦1,580.44 in the official forex market.

Data from the Central Bank of Nigeria’s website show the Naira gained ₦4.51k against the Dollar on Friday alone.

This marks a 0.28 per cent appreciation from Thursday’s closing rate of ₦1,584.95 in the official foreign exchange window.

The local currency maintained consistent strength throughout the week, recording gains daily.

On Monday, May 19, it traded at ₦1,598.68; on Tuesday, at ₦1,590.45; and on Wednesday, at ₦1,584.49.

These gains suggest increased investor confidence and improved forex supply, contributing to the naira’s performance.

Meanwhile, the CBN, at its 300th Monetary Policy Committee meeting held Monday and Tuesday, retained the Monetary Policy Rate at 27.5 per cent.

Business

BREAKING: Again, Dangote Refinery Cuts Petrol Price

Published

3 weeks ago

May 22, 2025

Editor

The Dangote Petroleum Refinery has announced a nationwide reduction in the pump price of Premium Motor Spirit (PMS), commonly known as petrol, with new prices now ranging between ₦875 and ₦905 per litre, depending on location.

The ₦15 per litre cut applies across all regions and partner fuel stations, and was confirmed via an official announcement posted on Dangote Refinery’s social media channels on Thursday.

Major marketers participating in the new pricing regime include MRS, Ardova, Heyden, Optima Energy, Techno Oil, and Hyde Energy — partners in the distribution of Dangote-refined products.

Under the previous pricing structure, Lagos residents paid ₦890 per litre, while prices reached ₦920 in the North-East and South-South regions. With the latest adjustment, Lagos now pays ₦875 per litre, while the North-East and South-South will see prices drop to ₦905.

A regional breakdown of the revised prices is as follows: Lagos: ₦875, South-West: ₦885, North-West & Central: ₦895, North-East & South-South: ₦905 and South-East: ₦905.

In its announcement, Dangote Refinery encouraged consumers to purchase fuel only from authorised partner stations and urged the public to report any cases of non-compliance via its official hotlines: +234 707 470 2099 and +234 707 470 2100.

“Our quality petrol and diesel are refined for better engine performance and are environmentally friendly,” the company said.

Business

Naira Appreciates Against Dollar At Foreign Exchange Market

Published

3 weeks ago

May 17, 2025

Editor

The Naira ended the trading week on a positive note, recording a bullish close on Friday at the official foreign exchange market.

It appreciated N1,598.72 against the U.S. Dollar, reflecting a modest gain that suggests continued efforts to stabilise the local currency.

According to figures published on the Central Bank of Nigeria’s official website, the Naira strengthened by N0.60k against the Dollar on Friday.

This upward movement represents a 0.03 per cent appreciation compared to the N1,599.32 exchange rate recorded at the close of trading on Thursday.

The local currency had shown some resilience earlier in the week, posting gains on both Tuesday and Wednesday trading sessions.

On Tuesday, the Naira appreciated by 0.02 per cent, followed by a stronger gain of 0.21 per cent on Wednesday.

These improvements were seen as positive indicators of growing investor confidence and increased supply in the foreign exchange market.

However, Thursday’s trading session saw a minor setback, with the Naira slipping by N2.62 against the Dollar.

This loss equated to a 0.16 per cent depreciation, dampening the midweek rally seen in previous sessions.

Market analysts attributed Thursday’s dip to a brief increase in Dollar demand from importers and other market participants.

Despite this, the week still closed on a positive note, with the Naira showing signs of gradual recovery and increased market stability.

Analysts continue to monitor the Central Bank’s policies, especially interventions aimed at improving Dollar liquidity and managing demand pressures.

The Naira’s performance in the coming weeks will likely depend on consistent supply inflows and investor sentiment across the broader economic landscape.