Press Release

TDA Supports Liquid Petroleum Gas Regulatory Restructuring In Nigeria

July 7, 2005

ABUJA, NIGERIA - Yesterday, the U.S. Trade and Development Agency (TDA) awarded a $562,000 grant to the Government of Nigeria, acting through the Office of the Minister of State for Petroleum Resources to provide technical assistance in the restructuring of Nigeria's policy and regulatory framework for liquid petroleum gas (LPG). The grant was conferred in a signing ceremony held at the Minister's office at the Nigerian National Petroleum Corporation. U.S. Ambassador to Nigeria John Campbell and Minister of State Dr. Edmund Daukuro signed the agreement on behalf of the U.S. and Nigerian governments, respectively.

Nigeria's Minister of State for Petroleum Resources, Dr. Edmund Daukoru, said at the signing ceremony that the TDA grant is a bold and laudable initiative which fits into the on-going energy reforms in the country. He said that over the years LPG domestic consumption level has witnessed a steady decline from over 100,000 MT in the early 1980s to 54,00MT in 2004 against a fast growing population, which translates into 0.4Kg per person per year - the lowest in Sub Saharan Africa "signaling a near collapse of the sector," he said.

He emphasized the need for an appropriate policy and regulatory frame work for the LPG sector, which Ambassador John Campbell described as "a practical partnership which will allow us to re-invigorate Nigeria's domestic LPG market, that is, the market for cooking gas."

Ambassador Campbell said, "Economical and safe cooking gas is a concern which touches the life of every Nigerian. However, the average person has little access to this gas for daily use; a situation this partnership seeks to rectify."

Although Nigeria is a substantial exporter of LPG, the country also imports large quantities of the fuel due to a crumbled domestic market. The TDA grant will be used to provide the Nigerian government with a clear path of how best to restructure the LPG market. Specifically, the technical assistance program supported by the TDA grant will include analysis of pricing and regulatory practices, as well as a demonstration of how the collapsed market can be rehabilitated to be attractive to investors while also structured to be sustainable.

The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries. The agency funds various forms of technical assistance, feasibility studies, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment. TDA's strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development. In carrying out its mission, TDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services.

Visit USTDA's Website at www.USTDA.gov

# # # #