Major Energies Marketers Association of Nigeria has expressed its unwavering support for the recent tax incentives introduced by the federal government to attract investments in the gas sector.
Recently, the cost of cooking gas and other energy products has increased significantly due to currency weakness and other inflationary pressures.
BusinessDay’s findings showed the cost of filling a 12.5kg cylinder has risen to N16,000.
To change the narrative, the federal government introduced value-added tax (VAT) exemptions for various energy products, including diesel, Liquefied Natural Gas (LNG), Compressed Natural Gas (CNG), and electric vehicles, among others, to reduce prices.
MEMA, an industry group which comprises 11Plc (formerly Mobil), Ardova Plc, Conoil Plc, MRS Oil Nigeria Plc, NNPC Retail Limited, and TotalEnergies Marketing Nigeria Plc said these incentives will significantly boost the country’s industrial sector and drive economic growth.
Lanke Dayo-Adepoju, gas and renewable specialist at MEMAN who represented Clement Isong, the CEO of the Industry group at the 2024 National Association of Energy Correspondents Annual Strategic International Conference said the new incentives from the federal government will significantly boost the country’s industrial sector and promote energy security.
Read also: Cooking gas price rose by 69% in August 2024
“This tax removal will not only lower the cost of living but will also encourage marketers to ramp up production and create more jobs,” Dayo-Adepoju stated. “We commend the government for taking this bold step in supporting both consumers and the economy.”
The association noted that the tax relief on cooking gas is particularly significant, as it will help households save on their monthly expenses. Many families have been struggling with the rising costs of essential commodities, and the removal of this tax is expected to provide much-needed relief.
Gabriel Ogbechie, the chairman of the NAEC conference and group managing director of Rainoil Limited said Nigeria is blessed with abundant natural gas reserves, but stands at a crossroads of opportunities and challenges, adding that, “the decisions we make today regarding the role of gas in our energy landscape will shape our nation’s economic and environmental future”.
According to him, with the recent removal of the petrol subsidy, there is a growing urgency to scale up gas alternatives, offering clean, affordable energy solutions for the nation, energy security, and building a resilient energy system.
Noting that the government aims to increase power generation through gas-fired plants, he said, that to make this a reality, we need to invest heavily in gas infrastructure while tackling issues like pipeline vandalization.
“We need to continue to attract and provide investment, particularly in green financing to develop our gas infrastructure.,”
He stressed the need to strengthen the policy frameworks that support the scaling of CNG and LPG initiatives for both transportation and domestic use.
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