Manufacturers Seek Stable Gas Price to Enhance Production

The Manufacturers Association of Nigeria (MAN) has called on the Federal Ministry of Petroleum Resources to immediately address challenges encountered by manufacturers with the pricing of gas.
The association noted that the average price of gas globally ranges between $2.5per scm, whereas in Nigeria, it is $7.45per scm.
The president of MAN, Mr Ahmed Mansur, made this call during an interactive session on gas pricing.
According to him, “It is worrisome and with this kind of differential, Nigerian manufacturers cannot and may never be competitive.”
Mansur, who was represented by the group managing director/chief executive offficer, Flour Mills, Paul Gbededo, noted that the price of gas has become a major source of conflict between manufacturers and gas franchisers.
He pointed out that the persistent increase in the price of natural gas used by their members to power their plants and machineries has reached a crisis dimension.
MAN also noted that the continued denomination of price of gas in US Dollars has made the product perpetually exorbitant and gradually getting outside the reach of majority of the manufacturers, particularly the SMEs.
The MAN president added: “These are areas we hope to critically look into and address in order to help the competitiveness of our members and the concerted efforts to improve the current contributions of the manufacturing sector to boost the Gross Domestic Product of the country.”
He, however, explained that necessary technical advice should facilitate the process of moving towards a fair price of gas for the manufacturers for the interest of the economy, with a call on government and oil stakeholders to initiate a functional policy within the government, especially in the resolution of the oil gas pricing issue.
Mansur noted that “it is imperative and incumbent on government to clarify the recent confusion over the amendments of the Federal Government Official Gazette No.2, Vol. 106 dated 4th January 2019.
“A new Gazette in the Gas Pricing Framework for Textile Industries surfaces without the inclusion of manufacturing sector as previously indicated in the earlier Gazette vide; Federal Government Gazette No.2 of 4th January 2019, Vol.3: Gas Pricing for Textile and Manufacturing Sector.
“Our members earnestly seek official clarification of the latest position of Government and the operational Gazette they should rely upon to plan their operations and make their business projections,” he added.
“Particularly, we hope the outcomes of our engagement will include a definite gas price and a price mechanism that support industrial production, competitiveness, wealth and job creation, with the accompanying positive multiplier effect on the economy.”
Also speaking at the event, the chairman, Gas Users Group, MAN, Michael Adebayo, said benchmarking of the price of gas to the US dollars had made the process very volatile and was responsible for the various increases in the price of gas witnessed.
Adebayo further noted that benchmarking the price of gas to the dollar exchange rate was not in consonance with the CBN directive of transacting businesses in Nigeria in the local currency.
“Unfortunately, gas franchisers saw this adjustment as an opportunity and used it as the basis to increase prices thereby undermining the Gas Sale Purchase Agreement (GSPA), which was collectively signed by MAN members,” he added.
Adedayo further stressed that gas franchisers should be advised to stop their unwarranted threats of disconnection and issuance of outrageous invoices which, he said, was in defiance of the ‘gentleman agreement’ being currently worked out by the Federal Government on the appropriate gas pricing in Nigeria.

0 Comments


    No Comment

Leave a reply

  • About Us

    From the beautiful 'Land of Promise', was born, in 1988, The Pioneer Newspapers. With presence in Lagos, Abuja and deep penetration in the South-South states of Nigeria, Pioneer Newspaper is standing out. Published three times a week - for extended durability and far reaching exposure, under the titles: The Pioneer (every Mondays), Midweek Pioneer (every Wednesdays), and Weekend Pioneer (every Fridays); these Pioneer titles, published by AKNC (Akwa Ibom Newspaper Corporation) provides you with News and other information you need to know on happenings across Nigeria and on the international scene, and with certain attention to a state in Nigeria that is after God’s heart, and is named after God; this is talking about Akwa Ibom State, also known as 'The Land of Promise.'

  • Flicker Gallery

    • PIONEER AT 30
    • Mr Udoh Charles
    • A Former Marketing Manager of AKNC, Mr Patrick Essien; the art editor, Mr Umoh Anwana(middle) and Mr Dominic Akpan were in attendance
    • Gov Udom Emmanuel (right) receiving a sculpture gift from the president of Ibom Patriots, Obong Bassey Inuaeyen, during a courtesy visit to the governor at Government House, Uyo, recently.
							Photo: Anthony Uduak.
    • R-L: The Akwa Ibom governor, Mr Udom Emmanuel, PDP national chairman, Senator Ahmed Makarfi and secretary, Senator Ben Obi, during the flag-off of the PDP campaign for December 2017 local government election in Akwa Ibom.	Photo: Anthony Uduak.
    • The wife of Akwa Ibom governor, Mrs Martha Emmanuel (right), receiving a souvenir from Cross River State governor, Professor Benedict Ayade during Southern Governors’ Wives Forum (SGWF) meeting in Cross River State recently.  			Photo: Enobong Essien
    • Gov Udom Emmanuel (right), presenting a plaque to the  pro-chancellor and chairman of Governing Council of the University of Uyo (UNIUYO), Professor Austin Awujo during  a courtesy visit on him at Government House, Uyo, recently.		Photo courtesy: Anthony Uduak
    • The national chairman, Peoples’ Democratic Party, PDP, Senator Ahmed Makarfi (left), discussing with the state PDP chairman, Obong Paul Ekpo (right), during the flag-off of the PDP campaign for  December 2017 local government election in Akwa Ibom.	Photo: Anthony Uduak.
    • The speaker, Akwa Ibom House of Assembly, Barr Onofiok Luke (right) and his deputy, Princess Felicia Bassey,  during the flag-off of the PDP campaign for December 2017 local government election in Akwa Ibom.	Photo: Anthony Uduak.
    • The Akwa Ibom commissioner for information and strategy, Mr Charles Udoh, addressing prefects in public secondary schools across the three senatorial districts of Akwa Ibom during a 3-day leadership and behavioural ethics training at Community Secondary School, Aka Offot.
  • Twitter