The Nigeria Liquified Natural Gas (NLNG) Ltd. has attributed the increasing cost of cooking gas in Nigeria to the shortage of foreign exchange (FX), the Federal Government’s import policies, and the Value Added Tax (VAT).
Dr. Philip Mshelbila, the Managing Director and Chief Executive of NLNG, made this statement on the sidelines of the African Investment Forum (AIF) in Marrakesh, Morocco.
He highlighted that the shortage of forex, coupled with import duties and VAT on Liquified Petroleum Gas (LPG), impacts around 60% of the product component, contributing to the rising prices.
Mshelbila urged the Federal Government to address these factors, stating that doing so would lead to a reduction in the prices of cooking gas, benefiting the Nigerian populace.
He emphasised the need for more investments in the sector, highlighting the potential uses of propane for transportation, power generation, and cell phone tower operations.
The NLNG Managing Director also stressed the importance of attracting investors and creating a conducive environment for sustainable returns on investments.
Source: Vanguard