Nigerian MSMEs turn to cooking gas to slash costs amidst fuel subsidy removal
Story from Haruna YUSUF
The recent removal of fuel subsidies in Nigeria has spurred innovative cost-cutting solutions for small and medium-sized enterprise (MSME) owners.
As the price of Premium Motor Spirit (PMS), commonly known as petrol, soared to N617 per liter, businesses found themselves grappling with financial challenges.
In response, many MSME owners have embraced an unconventional approach: using Liquefied Petroleum Gas (LPG), also known as cooking gas, to power their generators.
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“The use of petrol is expensive and erodes our profits,” lamented a trader.
In search of alternatives, Jaffaru Ibrahim, a trader stumbled upon a solution through a WhatsApp platform. He learned that by connecting a cooking gas cylinder to a generator equipped with the right carburetor, he could drastically reduce operational costs.
Ibrahim enthusiastically shared, “I used to spend N19,000 on petrol that would last for three days, but with LPG, I spend N9,000 for the same duration, saving around N19,000 to N20,000 weekly.”
When discussing potential challenges, Ibrahim emphasized the importance of safety precautions. He diligently keeps his gas cylinder in a cool environment to mitigate any explosion risks and routinely inspects for hose pipe leakages.
In the Chaza Community of Suleja Local Government, Nasiru Ismail, known as ‘Man-nass,’ also made the switch to cooking gas for his mobile phone charging shop.
He attested to the efficiency and cost-effectiveness of LPG compared to petrol.
Ismail encouraged fellow business owners to explore alternative fuel options, saying, “I am even considering using LPG to power my home generator because it is more economical than petrol. We’ve witnessed a 5% surge in gas demand recently, even though some households remain skeptical about using it with their generators.”
Ibrahim Abdulkarim, an LPG dealer in Suleja, offered his perspective on this growing trend. He believed that the federal government’s partnership with NIPCO Gas Limited to establish Compressed Natural Gas stations nationwide marks a significant stride toward providing alternative fuel choices for Nigerians.
This initiative aims to address the country’s energy challenges while promoting increased use of LPG as a viable solution.
As Nigerians adapt to the removal of fuel subsidies, MSMEs are beginning to embrace an innovative approach – utilizing Liquefied Petroleum Gas (LPG), commonly referred to as cooking gas, to power their generator sets.
This transition not only eases the financial burden on businesses but also underscores the potential for cleaner and more cost-effective energy solutions in the future.
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