Techno Oil GMD, Nkechi Obi, Urges Nigerian Government to Reinstate Import Duties on LPG Cylinders

 

                  Nkechi Obi, the Group Managing Director (GMD) of Techno Oil Limited

Nkechi Obi, the Group Managing Director (GMD) of Techno Oil Limited, has called on the Nigerian Federal Government to restore the 40 percent import duties on Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (CNG) cylinders. She made this appeal during a panel session at the 2024 Nigeria Oil and Gas (NOG) conference in Abuja.

Key Points from Obi's Statement

Obi emphasized the need for the government to reverse its recent zero-import policy on LPG and CNG to support local manufacturers. She highlighted several critical points:

·         Encouragement of Local Production:

• Obi stated, “We need policy reversal on that to encourage local producers.” She noted that the zero-import duties have inadvertently affected LPG equipment due to the same Harmonized System (HS) code used for CNG equipment.

·         Customs Classification Issues:

• She explained that customs officers have indicated that the same HS code for CNG, which the government aims to promote, has impacted LPG equipment due to the zero-import duties policy. HS codes are used globally to classify goods during the import and export process.

·         Local Production Capabilities:

• Obi pointed out that while Nigeria does not currently produce CNG cylinders due to the advanced technology required, the country does manufacture LPG cylinders. She emphasized the need for government support to upgrade technology for producing CNG cylinders.

·         Impact of Policy Changes:

• “The previous government protected those producing cylinders so that imports would not overshadow local production,” Obi remarked. She noted that the policy change by the new government has adversely affected local manufacturers.

·         Challenges Faced by Local Manufacturers:

• Obi stressed that the current zero-import duties policy is detrimental to the LPG cylinder production industry in Nigeria. This makes it challenging for local manufacturers to transition to CNG cylinder production.

Call for Government Action

Obi called on the government to consider the impact of its policies on local manufacturers. She urged a reconsideration of the zero-import duties policy to protect and promote local production, particularly for LPG cylinders.

Background

In January 2024, the Nigerian government approved zero import duties on LPG and CNG to encourage the adoption of gas-enabled vehicles. However, this policy has had unintended consequences for local LPG cylinder manufacturers.