News

Decade of Gas: Imposing VAT On LPG’ll Scuttle Dev, OGSPAN Warns

Published

4 years ago

July 7, 2021

The Oil and Gas Service Providers Association of Nigeria (OGSPAN) has urged the Federal Government not to impose the Value Added Tax (VAT) on Liquefied Petroleum Gas (LPG).

According to OGSPAN, the planned imposition of VAT on LPG would stifle, demand, utilisation, investment and growth of the sector in the country.

In an interview with newsmen, the National President of the association, Colman Obasi, said, “As a stakeholder in the sector, we were delighted when the Federal Government previously excluded operators in the LPG sector from paying the VAT.

“We were even more delighted when it declared January 1, 2021, to December 31, 2030, as ‘The Decade of Gas Development for Nigeria’, with emphasis on LPG.

“Specifically, the official launch of The Decade of Gas was declared by President Muhammadu Buhari, on March 29, 2021, also recognised 2021 as ‘Year of Gas’.

“However, having taken these steps, we were shocked to learn that the Federal Government is currently considering imposing VAT, targeted at increasing its revenue.”

According to him, “A Presidential directive was issued on July 11, 2005, to remove VAT on LPG. But the approved memo erroneously had the word ‘import’ left on it, because at the time imports were the only source of gas.

“This meant that the Federal Inland Revenue Service (FIRS) charged VAT on locally produced LPG but there was no output VAT, so the VAT cost was absorbed as a loss by industry players.

“Industry operators fought for 14 years to reverse this situation and the Minister of Finance finally removed the VAT on ‘domestically produced gas’ under a gazette issued in 2019, thus stopping the FIRS from charging VAT on LPG under a loophole that was created in error.

“The FIRS itself, under several subsequent letters (now available in the public domain) advised companies that neither input nor output VAT was payable on LPG, in line with other petroleum products.

“Industry operators and experts had warned at the time that insertion of the phrase ‘locally produced’ in front of LPG would lead to the reverse case through this legal loophole and, yet again, another round of needless quagmire.

“Experts have repeatedly pointed observed that of all the petroleum products listed in that gazette, why was LPG singled out for the phrase ‘locally produced’?; why not gasoline and diesel, which we don’t produce and yet import over 100 times more quantity than LPG.

“The Federal Government recently launched a drive for Autogas, using LPG/propane. How can the gas industry grow Autogas when VAT is applied to increase gas cost, but a humongous tax subsidy remains on the competing gasoline/PMS? Who is going to switch when gas prices are increasing as a result of this needless tax?

“For too long, the LPG sector had suffered from many problems, including policy inconsistency, inadequate funding, and low domestic utilisation, which needs to be fully addressed by the current administration.”

Obasi also disclosed that the planned introduction of VAT on LPG could culminate in the reversal of gains already made in the Federal Government’s gas expansion programme, targeted at achieving rapid development of the sector.

According to him, “The policy is aimed at enthroning gas as preferred energy for the domestic economy because it’s comparatively cheaper.

“While a litre of government subsidised petrol, under extant price regime, actually retails for between N165 and N200 per litre, depending on different parts of the country, the average deregulated retail price per litre of LPG delivered to Abuja/FCT falls between N100/Litre for propane specification to N195/litre for butane specification.

“The cheaper of the two, being propane spec LPG, is the industry-approved standard for Autogas in Nigeria, which portends huge savings for families and businesses.

“Autogas use with deep market penetration with a reasonable switch from PMS and AGO will save Nigeria huge foreign exchange spend on fuel importation; expand Nigeria’s domestic energy mix with improved accessibility for LPG as a cleaner and cheaper energy source with multiple applicable uses.

“This will, in great measure, help consumers, especially the low-income Nigerian families, with their fast-eroding purchasing power in an increasingly difficult economic environment.

“Apart from savings on the unit price per litre or kg of gas, there is also much savings on gas, with respect to engine servicing and overall maintenance cost, compared to petrol or diesel engine maintenance cost. And it is environmentally friendlier than petrol and diesel, in terms of greenhouse gas emissions.

“Autogas use will help trigger the much-needed demand intensive use of gas, with the multiplier benefit effect on improved in-country production and supply sources, with the attendant reduction in gas flaring, and a marked increase in foreign direct investments in LPG production plants, trading and distribution infrastructure and equipment manufacturing in Nigeria, which has been on the decline in recent years,” Obasi added.

News

Be Patient With Us, Diri Tells Bayelsans … Inspects New 60mw IPP …Expresses Confidence In Technical Partners, BECL MD

Published

1 day ago

January 2, 2026

The Tide

Bayelsa State Governor, Senator Douye Diri has sued for patience on the ongoing installation of the state’s new independent power project.

The Tide gathered that the 60-megawatt gas turbine project, which installation commenced in October this year, was earlier scheduled to be completed by December but suffered logistics related delays.

The governor called on people of the state to have an open mind about the project, which he said now requires a new completion date due to unforeseen challenges.

?The Tide further reports that the State’s Chief Executive who undertook an on-the-spot-assessment of the project at Elebele in Ogbia Local Government Area on Wednesday, said like other citizens of the state, he was also disappointed that the December completion deadline could not be met.

However, he stated that his reaction to the delay had been that of understanding rather than being angry as had been noticed, particularly on the social media.

?”You can see I’ve gone round the whole facility. It was based on the working agreement and information available at my disposal that I gave the December date. But as it is with every human endeavor, we must all have an open mind, when it comes to issues, particularly technical matters like this.

?”I am as disappointed as any other Bayelsan because I believed that we were going to celebrate the 2025 Christmas with our own independent power, but it turned out not to be so.

?”I call on Bayelsans to have an open mind. These technical experts are working virtually 24 hours, but delays like this will certainly come”, he said.

He implored the people 9f the state to appreciate the work of the engineers, stressing that a minor mistake was capable of jeopardising the millions of dollars expended on the project.

?”For 29 years Bayelsa has been in darkness or has endured epileptic power supply. Now that we are getting close to the day of liberation, some people have become impatient.

“Let us not behave like the proverbial tortoise in the prison for years that asked to be released immediately as the place was smelling the moment he knew it would regain freedom the next day”, the governor added.

?The Bayelss Governor gave a thumps up to the technical partners, Jampur Group, and its team on ground as well as the Managing Director of the Bayelsa Electricity Company Ltd, Engr. Olice Kemenanabo, saying they were working round the clock to ensure the job was completed.

?”Those who have been following me on this inspection would know that work has not stopped even for one day since it started. I am sure the job is more than 90 per cent complete. So let us hold our fire.

“Engineer Olice, I am not putting you under any pressure. From the reports I have, Olice is one of the best electrical engineers in Nigeria”, governor Diri said.

The governor, however, hinted that the government was looking at inaugurating the project during its sixth anniversary in February.

The MD of the Bayelsa Electricity Company Limited, Kemenanabo, who also spoke, said the state was on the right track towards actualising the project and assured that the alignment of the entire system, including the gas generator and alternator were on course.

He also stated that the remaining two turbines would be delivered to the project site in a few days.

?Speaking on behalf of the Jampur Group, Mr. Sherrif Abu-Anif said the company was in good position to meet its own end of the bargain and appreciated the state government for playing its part very well.

By Ariwera Ibibo-Howells, Yenagoa

News

Akpabio Withdraws All Defamation Suits After Priest’s Sermon

Published

1 day ago

January 2, 2026

The Tide

The Senate President, Senator Godswill Akpabio, has directed his lawyers to withdraw all ongoing defamation lawsuits against several individuals, saying he was moved by counsel during a New Year Mass.

Speaking at the Sacred Heart Parish in Uyo, yesterday, Akpabio said he had filed nearly nine lawsuits against individuals he accused of defaming him.

He said, “I had almost nine cases in court against some individuals who defamed me, who lied against me, who slandered my name.

“But I listened to the priest and suddenly realised he was talking to me, so I hereby direct my solicitor to withdraw all lawsuits against them.”

In 2025, Akpabio had filed several high-profile defamation lawsuits, including one against colleague Senator Natasha Akpoti?Uduaghan.

In late 2025, Akpabio filed a N200 billion defamation lawsuit against her over allegations of sexual harassment, which he denied and urged her to substantiate in court.

Earlier in the year, Akpabio’s wife also filed defamation suits against Akpoti?Uduaghan over claims she said had harmed her family’s reputation.

Relations between the two lawmakers soured after Akpoti?Uduaghan accused Akpabio of influencing her suspension from the Senate in March 2025, following her public allegations of misconduct.

The Senator had previously challenged actions taken against her in court, including a N100 billion defamation suit she filed against Akpabio and other defendants over alleged remarks that she said damaged her reputation.

With yesterday’s announcement, Akpabio has formally ended all pending legal disputes arising from defamation claims, signalling closure to the publicised litigations as the year begins.

News

‘Best Way To Show Gratitude Is To Deliver Tinubu in 2027’

Published

1 day ago

January 2, 2026

The Tide

Rivers State Governor, Sir Siminalayi Fubara, has declared that the best form of gratitude Rivers people owe President Bola Ahmed Tinubu for protecting the interest of the State is to galvanize massive support for the President in 2027.

Fubara disclosed this last Monday during the commissioning of Permanent Secretaries Quarters built by his administration at Elimgbu in Obio Akpor Local Government Area of the State.

He said that the State has what it takes to deliver the President during the 2027 general elections.

“We’ve taken a decision,our decision is for the good of Rivers State, our decision is to say thank you for the protection we have from Mr President, our decision is to prove that we have what it takes to deliver Mr President.”

Fubara expressed delight over the completion of the project, stating that the initiative was to provide accommodation, a basic need of life for public servants in the state to improve their productivity.

He explained that lack of effective social welfare was at the root of some incriminating actions that undermine the purpose of governance, noting that the commissioning of the newly built Permanent Secretaries Quarters marks a significant milestone in civil service welfare and institutional development.

“Insecurity begins when individuals are uncertain of what the next hour holds. This situation is especially challenging for family men and women, affecting confidence and decision-making,” he observed.

Fubara emphasized the need for proper maintenance of the facility and urged the beneficiaries to protect the project like a personal property, while directing the State Head of Service to appoint a facility manager to ensure long-term maintenance.

In her remarks, the Special Guest of Honour and Head of the Civil Service of the Federation, Mrs Didi Esther Walson-Jack, who unveiled the project, expressed appreciation to the governor and Rivers State for inviting her to commission the project.

She commended Fubara for prioritizing the welfare of Permanent Secretaries who are senior public servants and accounting officers, noting that the project reflects purposeful and visionary leadership, and urged other states to borrow a cue from the Rivers State Governor.

Walson-Jack described the initiative as a strategic investment in staff welfare and institutional continuity which she noted is in line with Renewed Hope Initiative on provision of mass housing and social stability.

“The commissioning of these houses reflect a deliberate commitment to the dignity, welfare, and productivity of senior public servants responsible for policy coordination and service delivery,” she said.

In his goodwill message, the National Secretary of the All Progressives Congress (APC), Senator Ajibode Bashiru, who led a high powered delegation on a visit to the governor, congratulated Rivers people for aligning with the Pan Nigerian political party, assuring that the interest of Rivers State will be duly protected in the APC.

He described President Bola Tinubu as a detribalised Nigerian who anchors his leadership on equity, fairness and justice, adding that the APC will provide a level playing ground for all.

The APC chief scribe also commended Fubara for providing good accommodation for public servants, stating that it will address issues of sabotage, compromise and disloyalty on the part of public servants.

Giving the project description, Permanent Secretary, Rivers State Ministry of Works, Dr. Austin Ezekiel-Hart, said the estate comprises 29 units, including nine standalone duplexes and 20 terrace buildings.

Facilities feature a water treatment plant, synchronized power generators, CCTV and alarm systems, a gym, recreational areas, and green spaces—designed to enhance comfort, performance, and productivity.

Earlier, the Head of the Rivers State Civil Service, Dr Mrs Inyingi Brown, had thanked the governor for his visionary initiative and unwavering commitment to the welfare of Rivers State Civil Servants, and restated the commitment of the State civil servants to the success of Fubara’s administration.

By: Taneh Beemene