LPG Interview of the Month - with the Osun State LPGAR Chairman

• 1 Comment(s)
• Author: Muyiwa Ige(LPG Stakeholder and Consultant)

Niglpgas.com gets a unique opportunity to interview the highly sagacious and assiduous Chairman of the Liquefied Petroleum Gas Retailers (LPGAR), Osun State Chapter.

Enjoy the rich interview!

  1. “You are welcome to this Niglpgas.com interview. It is a privilege to have you for this interaction.”

Thank You, it’s a pleasure.

2. “Kindly introduce yourself, business, and state the office you occupy.”

Good Morning the interviewer and the general audience.

My name is Comrade Anthony Ezinwanne Ugwu. The designation of my private business is Zion Cooking Gas Enterprises - which has a subsidiary: Zion Multipurpose.

I’m the current Chairman of the Liquefied Petroleum Gas Retailers, Osun State Chapter, Branch of NUPENG.

I’m equally the current Secretary of Lagos Zonal Council of LPGAR, South-West.

I’m also presently serving as the Assistant National Secretary of LPGAR.

3. “How long have you been in the cooking gas business?”

I have been involved in the cooking gas business for a long period of time. I practically grew up in the cooking gas business.

During my secondary school education in Ibadan, I was exposed to, and thoroughly learnt the nitty-gritty of the cooking gas business from my Uncle – a cooking gas dealer, who I was living with, at that time.

In 2006, I partnered with someone to start a cooking gas venture.

We later parted ways, and I subsequently set out to establish my private venture, which I named Zion Cooking Gas Enterprises, in 2009.

4. “How has the cooking gas business evolved over the years?”

It has been an interesting journey in the Cooking Gas Industry over the years.

In the past, the business required a relatively low capital investment with the assurance of high returns on investment.

That has since changed with the current proliferation of Cooking Gas Plants, which has made the profit margins in the business to reduce drastically.

Unlike in the past, LPG equipment such as tanks, cylinders and transfer pumps are now readily available, which makes it very easy for people to venture into the business – sometimes without undergoing the requisite training necessary to operate the business.

There are however some challenges in the cooking gas business, such as sudden hikes in the price of cooking gas and the occasional scarcity of the product.

A key section of the cooking gas business – which is the cooking gas cylinder and accessories sale, began to boom in 2009-2010, when Nigerians started embracing cooking gas again. A lot of people invested in the LPG cylinder and gas accessories business and thrived, and are still thriving.

Also, sourcing for cooking gas was a herculean task in the past. 

We sometimes had to travel to as far as Warri in Delta State, to purchase cooking gas at relatively low cost, and made decent profits.

That has changed today with entrance of many LPG depots into the cooking gas industry, which has made the product readily available.

In a nutshell, the profit margin in the cooking gas has substantially reduced as a result of stiff competition amongst the hordes of cooking gas industry players, such as retail outlet, Skid, Standard Plant and LPG Depot owners.

5. “The Osun State LPGAR Unit has enjoyed cohesion and unity since you assumed leadership of the Union. How have you been able to achieve this?”

First and foremost, I give GOD the glory for the grace we have enjoyed so far.

It has been a collective effort indeed.

The efforts and support of other visionary leaders of the union have been hugely instrumental in achieving the cohesion and progress we have been enjoying.

With good understanding and conflict resolution strategizes, we have been able to manage ourselves peacefully and in unity. The use of diplomacy in attending to our affairs, has also gone a long way in creating an atmosphere of tranquility and unity.

I sincerely appreciate everyone I have worked with in the state. A lot of sacrifice has been made by all and sundry to get to this stage.

6. “Can you share your happiest moment as the chairman of Osun State LPGAR.”

I’m always happy when I’m meeting with my fellow LPGAR members.

I was especially happy after our LPGAR seminar in 2021. We surmounted a lot of challenges in the build-up to the seminar and eventually had a great seminar which had a massive turn-out and was applauded by the participating agencies.

7.  “Can you share your most challenging moment as the chairman of Osun State LPGAR.”

My most challenging moment was the first time we planned to embark on a state-wide safety inspection exercise.

The committee I had set up to coordinate the exercise foot-dragged on it for over a month.

In order for the exercise not to be aborted, I had to labor and brainstorm tirelessly to draw up the strategies to accomplish the task.

It was indeed a very demanding exercise from conception to execution.

8. “What measures have you taken to ensure your members (Gas Retailers) adhere to safety procedures while carrying out their businesses?”

We have been very proactive with safety issues in the state; which can be attested to by the regulatory authorities.

We regularly embark on safety inspection visits to retail outlets in the state, to ensure their compliance to safety procedures.

The last safety exercise we had was jointly conducted with personnel from the State Fire Service; which was hugely successful.

In order to make the acquisition of safety gadgets such as fire extinguishers etc., easier for our members, we went as far as going to negotiate for reduced prices from the gadgets marketers/sellers.

We organize safety seminars on a regular basis, where competent resource persons from NMDPRA, SON, NSCDC, Police, Fire Service, etc., are invited to educate us on Cooking Gas safety procedures and best practices.

We continually furnish our people with updated safety guidelines and tips, and never fail to harp on the need for them to be in a state of preparedness for any incident.

9. “How do you address non-compliance by members to these safety procedures?”

We first try our best to sensitize defaulters on the danger of their unsafe practices and assist them as much as possible to tow the path of compliance.

After exhausting all channels of dialogue to ensure compliance and the defaulter remains recalcitrant, we call on the regulatory agencies to enforce compliance.

10. “Do you have cordial working relationships with the Cooking Gas (LPG) Industry regulatory authorities such as the NMDPRA, Fire Service, SON, Police and Civil Defense?”

We have a very cordial working relationship with the key cooking gas regulatory agencies such as the NMDPRA, Fire Service (State and Federal), SON, NSCDC, Nigeria Police and the Environmental Agency.

I personally have a very good working relationship with them and we have been working in tandem towards the same goal of fostering a safe LPG industry in the state.

11. “Are the requirements stipulated by the regulatory authorities easily attainable for your members?”

Some of the requirements are quite easy to attain, while some are very difficult.

The requirements by the NMDPRA are the most stringent and difficult to attain.

Even after satisfying all the requirements of NMDPRA, you may not be granted the final license, if you fail to meet up with their high expectations during the inspection and checks at your gas facility.

12. “What are the major challenges facing Cooking Gas Retailers in Osun State and Nigeria, as a whole?”

The major challenge is coming from LPG Plant owners. We are partners in progress with the LPG Plant owners, but some of them do not realize it.

In the past, it was the common practice to site LPG Plants at the outskirts of cities, where LPG retailers will buy cooking gas, for onward sale to end users.

But at this present time, LPG Plants are now located deep inside the cities and are competing for the same cooking gas end users(customers) with LPG retailers.

This is a challenge for Cooking Gas Retailers who cannot effectively compete with the big Gas plants in the pricing game.

Some of the Gas retailers who are sited close to big Gas Plants are in danger of being run out of the business.

13. “What are the factors inhibiting the growth of the LPG industry in Nigeria?”

The influx of quacks into the cooking gas industry, who do not possess the requisite skillset, and have practically very little or no training, on the rudiments and workings of the business.

These people pose a threat to the lives and properties of the people around them.

14. “What are the steps the government needs to take to enhance and sustain the growth of the LPG industry in the country.”

The government needs to encourage investors in the sector by creating a more enabling environment for LPG businesses to operate seamlessly in the country.

The government can equally grant soft SME loans with low interest rates to investors in the Cooking Gas business.

The government also needs to relax some of the very stringent requirements and approvals for establishing LPG Skid and Standard Stand-alone Plants.

Unemployment can be drastically curtailed in the country, if the government makes the entry into the cooking gas industry less cumbersome.

15. “The price of cooking gas is rising again, with the ex-depot price of 20 metric tons hitting N11,600,000 at some LPG Terminals in the country. What is responsible for the new increase in price?”

The increase in the price of cooking gas in the country is not unconnected to the high Naira-Dollar exchange rate.

If the exchange rate drops to as low as N200 to 1 USD, normalcy will be restored in the pricing template of Cooking Gas(LPG) and the product will be affordable for its users, while cooking gas marketers and investors will enjoy good profit margins.

The increase in the ex-depot price of cooking gas has eroded the working capital of many LPG Plants, and made it hard for them to purchase products single-handedly from the LPG depots.

The government needs to do everything necessary to bring down the exchange rate for the cooking gas, as well as, other businesses in the country to flourish.

16. “Nigeria has huge reserves of Natural Gas. Why is the country still importing cooking gas from overseas?”

Well, it is true that we have substantial deposits of natural gas, but we do not have leaders with the political will to develop the gas industry.

Nigeria ought to have nothing less than 10 refineries by now, if there is adequate will and sincerity of purpose.

The lack of functional refineries in the country is responsible for the importation of cooking gas in the country.

17. “Finally, what is the lasting legacy you want to leave behind when your tenure elapses as the chairman of Osun State LPGAR?”

My sincere wish is for the sustainability of the peace and cooperation being enjoyed in our union in the state

I still have some major contributions to make in the state, which I believe my successors can leverage on to maintain and sustain the union’s momentum on its trajectory of viable growth.

I pray the Almighty GOD will grant me the grace to make these auspicious contributions, within the shortest possible time.

18. “Thank you very much for gracing this interview.

The board of Niglpgas.com gives you ’10,000’ Metric Tons of kudos for your meticulous service to the LPG industry in Osun State, and Nigeria. Niglpgas.com wishes you the very best in all your endeavors.”

Thank you so much for the time. Thank you for coming to our world. I appreciate your organization. Our door is always open for any question or discourse on LPG issues.

Thank you.