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FG Implements Cooking Gas Imports Tax, Price Jumps By 100%

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The Federal Government has implemented a 7.5 percent tax on imported Liquefied Petroleum Gas, popularly called cooking gas, as the cost of the commodity leap by over 100 percent within a period of eight months.

It was gathered on Sunday that the government implemented the VAT on LPG imports about three weeks ago and some dealers were also mandated to pay the tax for commodities imported several months ago.

Operators told our correspondent that Nigeria imports about 70 percent of the commodity, while the rest was mainly supplied by the Nigeria Liquefied Natural Gas company.

It was also gathered that the cost of a 12.5kg of cooking gas that sold for about N3,500 in December 2020 had jumped to as high as N6,800 in parts of Abuja.

A resident along the Lagos-Ibadan road said she bought the commodity on Sunday at N7,200 in Lagos, as dealers projected that the cost might hit N10,000 in December this year.

Operators stated the development had made small businesses and homes in rural and semi-urban areas to revert to firewood and charcoal, as the purchase of cooking gas had plunged in recent months.

The National Chairman, Liquefied Petroleum Gas Retailers Association of Nigeria, Michael Umudu, said there were three factors that caused the surge in price.

He said, “There are three major factors to the hike in prices. Firstly, about 70 percent of the gas we consume in Nigeria is imported and importers have to contend with the high cost of foreign exchange.

“Secondly, there is a rise in the price of petroleum products in the international market and because of that, the cost of LPG has equally gone up. So importers now pay more on imports.

“And thirdly, the government added VAT on imported LPG about three weeks ago. It (VAT) was 7.5 percent of the cost of the commodity and this exacerbated the price hike of cooking gas in the past three weeks.”

Umudu stated that before the introduction of VAT, foreign exchange and the cost of petroleum products in the international market had been the factors causing the rise in price.

“Around November/December last year, 12.5kg was sold at about N3,500, but in July it went up to around N5,500 and when VAT was introduced about three weeks ago, it now escalated to about N6,500 and above,” he stated.

Umudu added, “The price hike seems to be happening on a daily basis and nobody can tell when it will stop. There has been a lot of appeal to the government to find a way of persuading NLNG to increase its domestic supply so that the product can be affordable.

“NLNG supplies about 35 percent of the gas we consume locally and that percentage is not adequate. And the gas sold by NLNG is even sold at an international price and is priced in dollar, not naira.”

On the cost of the commodity in metric tonnes, Umudu, replied, “20MT is now in the average of about N8m. And before VAT was introduced, the price of 20MT was around N6.8m to N7m, which was the highest price then.”

He noted that consequent to that, there has been an upsurge in the use of firewood and other alternative energy sources nowadays.

“If you come to Lagos, you will see heaps of firewood like groundnut pyramids. Many people who use LPG to run their small businesses cannot cope again because of the price. They are in crisis right now; some of them are now using firewood, others, charcoal,” he stated.

Umudu added, “Many people in the rural and semi-urban areas are dropping their cylinders. Those who find it difficult to get alternatives are actually going through a very hard time.”

Also speaking on the issue, the Executive Secretary, Nigerian Association of Liquefied Petroleum Gas Marketers, Bassey Essien, said the cost of 12.5kg gas could hit N10,000 in December.

He said, “If by December they (government) don’t take time to address this surge, it (12.5kg) will be N10,000. We are not the one causing this, rather it is the government. We sell what we get.”

On what could be done, he replied, “The volume we produce in Nigeria is just about 40 percent of the total consumption; the rest is imported. And you don’t have a forex window for these people to access to import gas.

“And secondly, you suddenly woke up and said you want to start imposing VAT on imported gas, which was removed several years back. And now, you didn’t even start it fresh, rather you said it is going to be in retrospect, starting from several months back.”

He added, “And you are imposing billions in taxes on gas imports, for instance, you ask one company to pay about N4bn as tax. Now if they pay that money, some other person needs to shoulder this cost.”

On what the government was doing about the development, the spokesperson of the Nigerian National Petroleum Corporation, Garba-Deen Muhammad, said the Minister of State for Petroleum Resources, Chief Timipre Sylva, had said the commodity was deregulated.

Muhammed, who served as the media aide to Sylva before switching to become NNPC spokesperson recently, said, “The minister answered this question during his last press briefing two weeks ago.”

At the briefing, Sylva had said, “We are not in a position to determine gas pricing because gas is not a regulated product. But, of course, we are also very concerned that prices are rising and so I am actually doing something about it in the interest of the ordinary Nigerian.

“I am calling some of the suppliers to discuss the reason for this hike.”

He added that the intervention was outside the government’s role.

BIG STORY

EFCC Declares 28-Yr-Old Woman Wanted Over Alleged Fraud, Theft

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The Economic and Financial Crimes Commission has declared Oyinkansola Folashade Okanlawon, aged 28, wanted over alleged involvement in fraud and the illegal acquisition of funds.

The announcement was made through the Commission’s official X handle, stating that Okanlawon is being sought for reportedly obtaining money through false pretence and theft.

The notice reads: “The public is hereby notified that OYINKANSOLA FOLASHADE OKANLAWON, whose photograph appears above, is wanted by the EFCC in an alleged case of Stealing and Obtaining Money by False Pretence.

“She is 28 years old and a native of Ipokia LGA in Ogun State. Her last known address is 21 Hammed-Kasumu Street, Chevron Drive, Lekki, Lagos.

“Anybody with useful information as to her whereabouts should please contact the Commission in its Ibadan, Uyo, Sokoto, Maiduguri, Benin, Makurdi, Kaduna, Ilorin, Enugu, Kano, Lagos, Gombe, Port Harcourt or Abuja offices or through 08093322644; its e-mail address: [email protected] or the nearest Police Station and other security agencies.”

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BIG STORY

Building A Cleaner Lagos: Environment Commissioner Tokunbo Wahab Backs LAWMA’s Triad of Education, Collaboration — By Babajide Fadoju

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  • As LASEPA Drives Science-Based Environmental Solutions

 

Lagos generates over 13,000 tonnes of waste daily, with single-use plastics clogging drainages, polluting water bodies, and threatening public health.

The Lagos Waste Management Authority (LAWMA) has historically relied on enforcement to manage this crisis, but recent initiatives signal a shift toward education, collaboration, and innovation.

The awareness walk, organized in collaboration with the Lagos State Environmental Protection Agency (LASEPA) and Alternative Bank, in Yaba and Tejuosho markets, exemplifies this evolution, promoting a zero-plastic lifestyle and responsible waste management.

While LAWMA’s progress is commendable, scaling these efforts to address Lagos’ massive waste challenges requires deeper public engagement, sustained partnerships, and innovative solutions.

Plastic pollution is a pressing issue in Lagos. With 2.5 million tonnes of plastic waste generated annually, less than 10% is recycled.

Single-use plastics, like sachets and styrofoam, exacerbate flooding, harm aquatic life, and infiltrate the food chain, posing health risks such as asthma and heart disease.

A 2023 audit by LASEPA revealed that each Lagosian discards roughly 34 kilograms of plastic into water systems yearly, equivalent to 10 plastic bottles daily. The state response includes the 2024 styrofoam ban and the “Adopt-a-Bin” program, which encourages waste sorting.

As spearheaded by the commissioner of Environment and Water Resources, Honourable Tokunbo Wahab. LAWMA has demonstrated collective responsibility, aligning with the THEMES+ agenda of Governor Babajide Sanwo-Olu’s administration.

LAWMA’s educational efforts are gaining traction. The agency’s collaboration with the Glo Skillbridge programme, graduating street sweepers trained in skills like baking, fashion design, and digital marketing, empowers its workforce while fostering environmental stewardship.

These initiatives complement LAWMA’s enforcement, which saw over 6,700 arrests for environmental violations from January to May 2025. This “stick and carrot” approach; balancing penalties with education, aims to create an informed populace capable of making responsible waste disposal choices.

Collaboration is central to LAWMA’s strategy. The partnership with LASEPA and Alternative Bank during the awareness walk highlights the power of public-private partnerships (PPP). Alternative Bank’s donation of waste bins to markets supports the Zero-Plastic Lagos initiative, while their emphasis on converting plastic waste into economic value through recycling aligns with global circular economy principles.

Dr. Babatunde Ajayi, LASEPA’s General Manager, stressed the need for sustainable alternatives, noting that plastic waste in the food chain endangers public health. Market leaders at Tejuosho, speaking in local dialects, pledged to adopt waste sorting and regular sanitation, reinforcing community-driven change. Dr. Gaji Omobolaji Tajudeen, Permanent Secretary of the Office of Environmental Services, praised Alternative Bank’s corporate social responsibility and urged other organizations to join LAWMA in delivering a cleaner, safer Lagos.

Despite these efforts, challenges persist. Public resistance to policies like the 2025 single-use plastics ban stems from concerns over the cost of sustainable alternatives and inadequate transition periods. Businesses argue that reusable options are less affordable, while enforcement measures sometimes alienate communities. Lagos’ rapid urbanization, with over 1,500 sachet water factories producing 60 million sachets daily, overwhelms existing waste infrastructure. LAWMA’s Smart Bin innovation and decentralized operations across Local Council Development Areas (LCDAs) are steps forward, but scaling these requires significant investment and public cooperation.

To address these hurdles, LAWMA must deepen community engagement. The use of local languages in outreach, as seen in the Yaba and Tejuosho walk, ensures inclusivity across Lagos’ diverse population. Expanding campaigns with influencers, traditional media, and community leaders can build consensus and counter resistance. LAWMA should also explore deposit schemes for sachets and bottles, incentivizing recycling while reducing litter. The agency’s collaboration with LASEPA, as seen in their joint push for regional air quality standards at the Nairobi Clean Air Forum, offers a model for waste management. By integrating waste sensors into Lagos’ public transit network and training African engineers to build affordable monitors, LAWMA can enhance data-driven governance.

Private sector partnerships are equally critical. Alternative Bank’s support, alongside initiatives like the Glo Skillbridge programme, shows how corporate involvement can amplify LAWMA’s impact. Expanding the PPP model to include more businesses could fund infrastructure upgrades, such as waste-to-energy plants and additional transfer loading stations. These partnerships can also drive innovation, like upcycling plastics into construction materials, creating jobs and reducing environmental harm.

LAWMA’s collaboration with LASEPA is particularly promising. By aligning with a science-based agency, LAWMA can refine its data-driven approach, ensuring policies are grounded in evidence.

For instance, LASEPA’s work with University of Lagos to develop affordable air quality sensors could inspire similar innovations in waste monitoring. Such synergies can strengthen enforcement while fostering public trust through transparent, science-backed policies.

LAWMA’s shift toward education, collaboration, and innovation marks a turning point in Lagos’ waste management journey. As envisioned by Commissioner Tokunbo Wahab and ultimately, Governor Babajide Sanwo-olu, the end goal to have a cleaner, greater Lagos.

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Obasa Commends N500Billion ‘Produce For Lagos’ Initiative, Reaffirms Assembly’s Support

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The Speaker of the Lagos State House of Assembly, Rt. Hon. (Dr) Mudashiru Obasa has commended the N500billion ‘Produce for Lagos’ Initiative, a state government-led collaboration with the private sector to tackle supply chain inefficiencies, enhance access to agricultural produce, and strengthen food security across Lagos.

Implemented through Special Purpose Vehicles like the Lagos Food Systems Infrastructure Company (LAFSINCO), Lagos Bulk Trading Company, Eko Logistics, and Produce for Lagos Fund, the programme will provide credit support for food producers across the state, and working capital for bulk traders and logistic operators. This will ensure a stable food supply for Lagos and beyond, while boosting private sector investment in agriculture and food systems.

Speaking with reporters on the sidelines of the launch held at the Lagos House, Alausa, on Wednesday, Speaker Obasa described the ₦500 billion Offtake Guarantee Fund as a transformative step toward making agriculture a cornerstone of Lagos’ economic prosperity. He reaffirmed the House of Assembly’s steadfast support for every initiative that will propel the state’s economy to greater heights.

In his words, “The Lagos State House of Assembly is fully committed to this vision, which will help to harness the infinite potential of our arable land and transform agriculture into the cornerstone of Lagos State’s economic prosperity. We believe that agriculture has the potential to be a potent driver of food security, job creation, and economic diversification in our state.”

Over the years, the Speaker continued, “The House of Assembly has been very proactive in supporting agriculture through policies and legislation that promote investment, innovation, and inclusivity. And we know that the ‘Produce for Lagos ‘ initiative being launched today will go further to address food insecurity and ensure long-term access to affordable, nutritious food across the state.”

Speaker Obasa further assured that the Assembly will expedite deliberations on the Food Hub Bill aimed at formalising market operations and reducing informal trading constraints.

In his keynote address, Governor Babajide Sanwo-Olu described the launch of the initiative as “a watershed moment in our shared commitment to achieving food security, inclusive prosperity, and sustainable growth not just for Lagos State but for Nigeria.” He added that the program will provide guaranteed offtake contracts, financing access, and logistics support, connecting all and sundry directly with Lagos’s dynamic food economy.

On her part, the Commissioner for Agriculture and Food Systems, Ms Abisola Olusanya, said the initiative was designed as a large-scale off-taker programme that would focus on strengthening the state’s food supply chain through interstate collaboration and strategic private sector investments. Olusanya said, “The ‘Produce for Lagos’ initiative represents our commitment to building resilient, sustainable food systems by leveraging interstate collaboration and private sector investment.”

The event had in attendance, among other preeminent Nigerians, the Governors of Kogi, Ogun, Niger, and Plateau States; Christopher Musa, Chief of Defence Staff (CDS); Michael Deleen, Consul General of the Kingdom of the Netherlands, and Tony Elumelu, the founder and chairman of UBA Plc, who donated N25billion to support the initiative.

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