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KOGI STATE LPG (COOKING GAS) CONSUMPTION ANALYSIS

Kogi, a state in the central region of Nigeria with Lokoja, which was the first administrative capital of modern-day Nigeria as its capital city.

There are 21 local government areas with three main ethnic groups: IgalaEbira, and Okun.

The total population figure of Kogi state from the National population census 2006 shows a total human population of 3,278,487 with 641, 556 households.

Dividing the human population by the number of regular households, it shows that the average family size per house hold is 5.

3,278,487people/ 641, 556 households = 5 people per house hold.

Table 1: The Energy Mix of Kogi State

S/N

Regular Households Energy Mix

Population Census
(2006-03-21) : 3,314,043

Population Projection
(2016-03-21): 4,473,500

01

Households using FIREWOOD

437, 952

591,235

02

Households using KEROSENE

160, 935

217,262

03

Households using COAL

9,609

12,972

04

Households using ANIMAL DUNG/ SAW DUST/ COCONUT HUSK

1, 694

2,287

05

 Households using   ELECTRICITY

13, 872

18,727

06

 Households using SOLAR

355

479

07

 Households using LPG

7,808

10,541

 

Total

641, 556

853,503

Assuming every other factor remains constant, we have estimated the households with the same 35% projected growth rate from 2006 to 2016 of population growth rate.

* Data source: https://www.citypopulation.de/php/nigeria-admin.php?adm1id=NGA023

From our retail experience, the average consumption of LPG for a family size of 6 in Nigeria is 20kg, so from the data in Kogi, the average family size in Kogi is 5 which translate to 16.6kg worth of cooking gas per house hold a month.

Annual Consumption: 16.6kg X 12months = 199.2kg

This research focuses on converting housholds that use Fire wood and Coal:

Energy Equivalence of 1kg of LPG to:

Firewood: 6.5 – 10.8 kg

Charcoal: 10.2 – 29.7 kg
*Source National Gas Policy

Taking the weighted average for the purpose of this research

Firewood: 8.65kg

Charcoal: 19.95kg

*This figure will be used to determine the amount of wood than be saved to positively impact on the environment as we go on.

The number of homes using firewood and coal is 447, 561 (2006 census) and 604,207 (2016 projections) which translates to

447,561 homes X 199.2kg= 89,154,151kg (89,154MT) worth of gas for domestic consumption alone

604,207 homes X 199.2kg= 120,358,034kg (120,358MT) worth of gas for domestic consumption alone.

A weighted average of the two consumption figures above was used to get the potential market size of Kogi state below:

89,154,151kg + 120,358,034kg = 209,512,185 / 2 = 104,756,093kg

The Potential market size of converting households using firewood and coal in Kogi state is 104,756,093kg of LPG (104,756MT)

 

Wealth and Job Creation Opportunities (Gaspreneurs: Gas entrepreneurs)

A total of 7.956 million Nigerians became unemployed between January 2016 and September 30, 2017, data from the National Bureau of Statistics shows because of the fall of oil prices and recession. LPG distribution and consumption creates a new window for gaspreneurs to make a living out of retailing, logistics and sales of LPG appliances.

The LPG industry will create 15,000 Jobs and 3,000 new businesses in Kogi state alone, write to data@kiakiagas.com to get the full report.

 

Required LPG cylinders to meet the demand of this market

LPG cannot be consumed without cylinders; to meet the needs of this market, a minimum of 3 million units of cylinders for home consumption and retailer’s distribution is needed to fully address this market. Write data@kiakiagas.com to see full details on cylinder distribution and operational schemes to convert and take this market.

 

Current Distribution Infrastructure in Lokoja

There are 4 Major LPG plants in Lokoja with a total capacity of 4 major plants with a combined capacity of 115,000kg and 5 mini plants with a combined capacity 7,500kg and 50+ retailers in the capital. Write data@kiakiagas.com to get the entire distribution infrastructure of the Kogi state across all the Local Governments Areas.

Investment opportunities in converting Kogi state and Cost Structure

There is a massive opportunity to invest in Kogi state and the North Central geo-political zone to tap in into the market potential for LPG distribution. Our Gaspreneur Investment advisors are on hand to advice you on the best way to tap into a fast a growth market. write gaspreneur@kiakiagas.com or call +2348187784000. +2348085269328

Environmental Impact

The weighted average of homes using firewood and coal is 447, 561 (2006 census) and 604,207 (2016 projections) which translates to

447,561 + 604,207 households = 1,051,768/2 = 525,884 households

Households using Firewood: 513,263 (97.9%)

Households using Charcoal: 11,307 (2.1%)

We have established that the potential LPG consumption in this market is 104,756,093KG,

To fully understand the amount of wood that can be save when we switch Kogi state from Firewood and charcoal to wood:

We have established the conversion of 1 kg of LPG to

Firewood: 8.65kg

Charcoal: 19.95kg

Amount of wood that will be saved: 102,556,215kg of LPG (97.9%) X 8.65kg of firewood: 887,111,259.75kg of wood.

Households using Charcoal: 2,199,878 (2.1%) X19.95kg = 43,887,566.1kg of wood, since charcoal is made from wood and the tree trumps.

In total Kogi state will save 930,998,825.85kg whooping sum of wood, we are even shocked at this numbers, this will go a long way to reduce tension between the herdsmen and the farmers because there will be enough lush green vegetation for the herdsmen and farmers read our editorial to learn more http://www.kiakiagas.com/blog/editorial-how-lpg-can-solve-fulani-herdsmen-crisis-nigeria

 

In Conclusion:

Nigerians like to hold on to traditional beliefs which sometimes make the populace slow to change to a new way of life. Let’s face it, switching the entire nation from dirty fuels to LPG is an interesting challenge but will not come easy because it basically changes the very foundation on which some of these rural communities were built on. For example, most young males meet their brides on their way to fetch firewood in the early hours of the mornings etc young people have to be shown that they can also meet their brides and grooms on their way to the gas stations just like the way telecommunication changed letter writing to sms, whatsapp chats etc.

The benefits of making the switch to LPG are enormous.

  1. Business Creation
  2. Employment opportunities
  3. Environmental impact
  4. Eliminate premature deaths in the rural communities
  5. Lay grounds for the introduction of renewable forms of energy to provide power in their homes.

Kiakiagas Data services is a premium service for LPG  business owners, investors, regulators stake holders to have required data information to help them make sound decisions before starting their LPG businesses and how to expand their businesses using data driven market dynamics. Write us data@kiakiagas.comgaspreneur@kiakiagas.com; +2348187784000, +2348085269328.

 

Appendix

Table2: Kogi state LPG consumption analysis by LGA

S/N

LGAs

Population
census
2006-03-21

Population
projection
2016-03-21

Weighted average of the population

Percentage of the population per lga

Projected Annual  lpg consumption per LGA (KG)

projected monthly consumption per LGA (KG)

1

Adavi

217,219

293,200

255,210

6.55%

6,861,524

571,794

2

Ajaokuta

122,432

165,300

143,866

3.69%

3,289,788

274,149

3

Ankpa

266,176

359,300

312,738

8.03%

8,411,914

700,993

4

Bassa

139,687

188,600

164,144

4.22%

4,420,707

368,392

5

Dekina

260,968

352,300

306,634

7.87%

8,244,305

687,025

6

Ibaji

127,572

172,200

149,886

3.85%

4,033,110

336,093

7

Idah

79,755

107,700

93,728

2.41%

2,524,622

210,385

8

Igalamela-Odolu

147,048

198,500

172,774

4.44%

4,651,171

387,598

9

Ijumu

118,593

160,100

139,347

3.58%

3,750,268

312,522

10

Kabba/Bunu

144,579

195,200

169,890

4.36%

4,567,366

380,614

11

Kogi

115,100

155,400

135,250

3.47%

3,635,036

302,920

12

Lokoja

196,643

265,400

231,022

5.93%

6,212,036

517,670

13

Mopa-Muro

43,760

59,100

51,430

1.32%

1,382,780

115,232

14

Ofu

191,480

258,500

224,990

5.78%

6,054,902

504,575

15

Ogori/Magongo

39,807

53,700

46,754

1.20%

1,257,073

104,756

16

Okehi

223,574

301,800

262,687

6.75%

7,071,036

589,253

17

Okene

325,623

439,500

382,562

9.83%

10,297,524

858,127

18

Olamaboro

158,490

213,900

186,195

4.78%

5,007,341

417,278

19

Omala

107,968

145,700

126,834

3.26%

3,415,049

284,587

20

Yagba East

147,641

199,300

173,471

4.46%

4,672,122

389,344

21

Yagba West

139,928

188,900

164,414

4.22%

4,420,707

368,392

 

Total Population

3,314,043

4,473,500

3,893,822

 

100.0%

104,756,093KG

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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