LCCI Seeks Stable Business Climate to Unlock Investment in Small-scale LNG, CNG Distribution

Dike Onwuamaeze and Oluchi Chibuzor The Lagos Chamber of Commerce and Industry (LCCI) has called on the government to create predictable regulatory and commercial environment to attract private investments into small-scale Liquefied Natural Gas (LNG) and Compressed Natural Gas (CNG) distribution. The LCCI stated that this would bridge the gap between the country’s abundant gas resources and the energy requirements of productive enterprises. It also called for the establishment of dedicated clean energy financing windows for Small and Medium Enterprises (SMEs) to address high upfront cost of solar systems, battery storage, gas conversion equipment and energy-efficient machinery. These calls were made yesterday by the President of LCCI, Mr. Leye Kupoluyi, during the chamber’s Liquefied Pressure Gas (LPG) and Downstream Natural Gas Sectoral Group’s, “LCCI Eko Gas Scheme 3.0,” event with the theme “Empowering SMEs Through Affordable Clean Energy.” Kupoluyi said: “Nigeria must bridge the gap between its abundant gas resources and the energy requirements of productive enterprises. “This requires investment in gas gathering and processing facilities, transportation infrastructure, distribution networks, storage and appropriate safety systems. “We encourage the government to create a predictable regulatory and commercial environment that attracts private investment into small-scale LNG, CNG distribution and gas-based industrial energy solutions.” He also made a case for strengthened regulatory coordination and policy consistency, saying investors required clarity regarding energy pricing, licencing, market access, technical standards, and the responsibilities of the different regulatory authorities. “The government should ensure effective coordination among relevant federal and state institutions, including energy regulators, gas-sector authorities, and agencies responsible for investment promotion and environmental compliance. “It should provide targeted fiscal incentives for clean energy adoption by considering appropriate tax incentives, accelerated capital allowances, and reduced import-related costs for qualifying clean energy equipment, battery storage systems, energy-efficient machinery, and essential components that are not competitively available locally,” Kupoluyi added. He said unlocking the potential of natural gas and other clean energy solutions would offer opportunities for industrial development, particularly where it could replace more expensive and less efficient fuels. “With appropriate infrastructure and commercially viable delivery systems, LNG, CNG), and other gas-based solutions can support industrial clusters, manufacturing enterprises, and businesses in areas with inadequate grid electricity,” Kupoluyi said. According to him, the ultimate objective was not simply to promote a particular energy source, but to reduce the total cost of energy while improving reliability and reducing harmful emissions. He pointed out that unreliable electricity supply was compelling businesses to depend on petrol and diesel generators, which expose them to volatile fuel prices, high maintenance costs, equipment breakdowns and disruptions to production. Kupoluyi said Nigeria could not rely exclusively on expanding the national grid to meet the immediate energy needs of all SMEs. According to him, embedded generation, renewable energy mini-grids, industrial micro-grids and shared energy facilities offer additional pathways to reliable electricity. The Chairperson, LPG and Downstream Natural Gas Sectoral Group, LCCI, Mrs. Jacqueline Addy, said energy remains a critical driver of productivity, business growth, and economic development. Addy noted that the rising cost of energy was directly affecting operating expenses and profit margins of SMEs and their ability to grow and create jobs. She said: “Access to affordable and reliable energy is, therefore, essential to their sustainability and competitiveness. “Wider access to LPG can help businesses improve efficiency, manage energy costs, and operate more sustainably. “However, we recognise that the transition to cleaner energy must be supported by affordability, accessibility, awareness, and, above all, safety.”