There was great excitement when the Federal Government through the Nigerian National Bureau of statistics NBS released Foreign Trade Statistics for the Fourth Quarter of 2017, the report stated that Nigeria earned NGN 3,711,926,664,892 (12,130,479,297USD) from the export of petroleum products

1. Crude Oil: NGN 3,254,614,337,082 (USD 10, 635, 994, 565)
2. LNG: 416,588,113,039.69 (USD 1,361,399,062)
3. Other Petroleum Gases: NGN 28,420,639,066, (USD 92,877,905)
4. Liquefied Butane: NGN12,303,575,704.40, (USD40,207,763)

*Exchange rate is 1USD=NGN306

The export of crude oil is crucial for Nigeria to meet her foreign exchange needs and the domestic market for LNG is still commercially low. This piece is focused on why Nigeria does not need to export LPG as it can be consumed locally, thereby creating numerous economic opportunities for Nigerians.

The total amount Nigeria earned from the export of LPG for Q4 2017 is NGN40,724,214,770 (USD133,085,669)

LPG locally known as cooking gas in Nigeria has three kind of gases namely butane, propane and Iso-butane. They could be in one these form or in a mixture of any of them. LPG (cooking gas) is gotten during the refining of petroleum (crude oil), or extracted from natural gas streams as they emerge from the ground. The approved Nigerian LPG (cooking gas) for domestic consumption is 100% Butane or a mixture of 85% butane and 15%propane, provided propane is not more than 15%.

According to the KiakiaGas price index (Daily LPG pricing in Nigeria across all the terminals in Nigeria in comparison to the Mont Belvieu pricing system) The Highest and lowest price for a KG of LPG (cooking gas) was NGN250 (USD 0.82) and NGN215 (0.70USD) [/b]respectively at the terminal (Large storage tanks where vessels load LPG into from the refineries and gas wells and a sales point to the downstream domestic market through trucks). [b]The weighted average price per KG for the period of Q4 2017 was NGN232.5 (0.76USD).

To understand the quantity of LPG that can be consumed, divide the amount earned from exported LPG against the amount unit of LPG sold per unit at the terminal.

NGN40, 724,214,770 (USD133, 085,669)/ NGN232.5 (0.76USD) = 175,157,913kg.

To convert from KG to Metric Tonne you divide 175,157,913kg by 1000
175,157,913kg/1000= 175,158MT

To effectively distribute 175,157,913kg of LPG(cooking gas) in Nigeria, you need some basic infrastructure like LPG trucks and distribution plants to get the gas from the terminals to the end users.

We propose the use of mini skid plants because of the ease of setup and relative low expenses of set up and licensing. For the purpose of this piece we use a 5000kg LPG mini plant. With a good location and the right business support a 5000kg plant can retail its quantity 4 times a month which is

5000kg X 4 Weeks= 20,000kg per plant a month.

175,157,913kg/20,000kg = 8,758 LPG (cooking gas) plants of 5000kg capacity.

The trucks that will convey the cooking gas from the terminals to the various retail plants, assuming they are all Bridger trucks of 20,000kg capacity and their load and distribution cycle is once every 3 days it means the trucks will distribute:

20,000kg (truck capacity) X 10 trips (per month) = 200,000kg
monthly, a truck can distribute 200,000kg worth of Cooking Gas monthly. To ascertain the number of trucks needed to effectively distribute the quantity we will divide

175,157,913kg (worth of gas) / 200,000kg (distribution quantity per truck) = 876 trucks.

The average price for Cooking gas to end user is NGN280 (0.92), the gross profit is around NGN40 (0.13USD) per kg, we estimated that with a good location each gas entrepreneur will sell at least 20,000kg worth of gas per month, which translates the gross profit to

20,000kg of LPG X NGN40 (0.13USD) gross profit per KG = NGN800,000 (2614USD) per month

Local consumption of LPG (cooking gas) can create 20,000 millionaires and help the government solve the unemployment gap in the country. It will create approximately 9000 business owners across the country;
each of the plants will employ at least 2 people which will create 18,000 jobs. The trucks will need a driver and 2 motor boys (truck driver assistants) which is an opportunity for another 2625 jobs. The support businesses like mechanics for the trucks, LPG (cooking gas)plant installers etc that will spur the local economies around these businesses.

Local consumption of LPG (cooking gas) can create 20,000 millionaires and help the government solve the unemployment gap in the country. It will create approximately 9000 business owners across the country;
each of the plants will employ at least 2 people which will create 18,000 jobs. The trucks will need a driver and 2 motor boys (truck driver assistants) which is an opportunity for another 2625 jobs. The support businesses like mechanics for the trucks, LPG (cooking gas)plant installers etc that will spur the local economies around these businesses.

KiakiaGas is a leading integrated Gas solutions business with interest in production, distribution, retailing, Data management and Gas engineering solutions. Her gaspreneur scheme is designed to create sustainable and profitable gas businesses across the Nigerian LPG value chain. Write gaspreneur@kiakiagas.com or call/Whatsapp:+2349060325773, +2348085269328 for more info.

Kogi, a state in the central region of Nigeria with Lokoja, which was the first administrative capital of modern-day Nigeria as its capital city.

There are 21 local government areas with three main ethnic groups: Igala, Ebira, and Okun.

The total population figure of Kogi state from the National population census 2006 shows a total human population of 3,278,487 with 641, 556 households.

Dividing the human population by the number of regular households, it shows that the average family size per house hold is 5.

3,278,487people/ 641, 556 households = 5 people per house hold.

Table 1: The Energy Mix of Kogi State
S/N Regular Households Energy Mix Population Census Population Projection

1 Households using FIREWOOD 437, 952 591,235

2 Households using KEROSENE 160, 935 217,262

3 Households using COAL 9,609 12,972

4 Households using ANIMAL DUNG/ 1, 694 2,287
SAW DUST/ COCONUT HUSK
5  Households using   ELECTRICITY 13, 872 18,727

6  Households using SOLAR 355 479

7  Households using LPG 7,808 10,541

Total 641, 556 853,503

Wealth and Job Creation Opportunities (Gaspreneurs: Gas entrepreneurs)

A total of 7.956 million Nigerians became unemployed between January 2016 and September 30, 2017, data from the National Bureau of Statistics shows because of the fall of oil prices and recession. LPG distribution and consumption creates a new window for gaspreneurs to make a living out of retailing, logistics and sales of LPG appliances.

The LPG industry will create 15,000 Jobs and 3,000 new businesses in Kogi state alone, write to data@kiakiagas.com to get the full report.

The number of homes using firewood and coal is 447, 561 (2006 census) and 604,207 (2016 projections) which translates to

447,561 homes X 199.2kg= 89,154,151kg (89,154MT) worth of gas for domestic consumption alone

604,207 homes X 199.2kg= 120,358,034kg (120,358MT) worth of gas for domestic consumption alone.

Kogi, a state in the central region of Nigeria with Lokoja, which was the first administrative capital of modern-day Nigeria as its capital city.

There are 21 local government areas with three main ethnic groups: Igala, Ebira, and Okun.

The total population figure of Kogi state from the National population census 2006 shows a total human population of 3,278,487 with 641, 556 households.

Dividing the human population by the number of regular households, it shows that the average family size per house hold is 5.

3,278,487people/ 641, 556 households = 5 people per house hold.

Table 1: The Energy Mix of Kogi State
S/N Regular Households Energy Mix Population Census Population Projection

1 Households using FIREWOOD 437, 952 591,235

2 Households using KEROSENE 160, 935 217,262

3 Households using COAL 9,609 12,972

4 Households using ANIMAL DUNG/ 1, 694 2,287
SAW DUST/ COCONUT HUSK
5 Households using ELECTRICITY 13, 872 18,727

6 Households using SOLAR 355 479

7 Households using LPG 7,808 10,541

Total 641, 556 853,503

The export of crude oil is crucial for Nigeria to meet her foreign exchange needs and the domestic market for LNG is still commercially low. This piece is focused on why Nigeria does not need to export LPG as it can be consumed locally, thereby creating numerous economic opportunities for Nigerians.

The total amount Nigeria earned from the export of LPG for Q4 2017 is NGN40,724,214,770 (USD133,085,669)

LPG locally known as cooking gas in Nigeria has three kind of gases namely butane, propane and Iso-butane. They could be in one these form or in a mixture of any of them. LPG (cooking gas) is gotten during the refining of petroleum (crude oil), or extracted from natural gas streams as they emerge from the ground. The approved Nigerian LPG (cooking gas) for domestic consumption is 100% Butane or a mixture of 85% butane and 15%propane, provided propane is not more than 15%.