According to the student’s dictionary, the word “power” is energy derived from heat, movement, fuel, stone, and so on. There are two main sources of energy. These are renewable energy and renewable energy. Examples of renewable energy include solar, nuclear, wind, geothermal and biogas, while non-renewable energy sources include petroleum products, coal and oil. In 1987, policy guidelines on energy were developed for Nigeria. The main principles of energy policy, as needed, are to utilize local consciousness and the country’s energy resources as a whole. The objectives to achieve the goal are;
- Develop and maintain a regular stockpile of current and planned needs, including our energy resources, human and material resources;
- Ensure sustainability and adequacy of power supply in the short, medium and long term, including appropriate protection policies;
- Providing energy in the long run with economically viable costs;
- Proper and timely consideration of safety for the safety and environmental protection of the public and the workforce from the exploitation, conversion and use of force;
- Improving and enhancing our technology performance in line with the need for self-reliance and economic competitiveness in the energy sector;
- Provide an integrated framework for the implementation of these policy issues.
In Nigeria, it accounts for 90 percent of export revenue and 80 percent of government revenue. Over the years, fluctuations in world prices have weakened the country’s economy. Moreover, it is important to note that our economy has suffered greatly as a result of the collapse of our refineries. Due to the current state of our refineries, the federal government has wisely decided to refine crude oil off the coast of Nigeria and this has negatively affected the price of refined petroleum products.
Similarly, the naira to the US dollar has also negatively affected the cost of importing cooking gas. According to The Punch, on Monday, August 30, 2021, the price of 12.5 kg of cooking gas was sold at N3,500 and in July 2021 the price rose to N6,500, which is more than 100. Percent increase. Reasons for current prices have been added.
The National Chairman of the Nigerian Liquid Oil Retailers Association highlighted three main reasons for the high cost of natural gas. According to him, the main reason is that 70% of the cooking gas is imported, so importers have to struggle with the high cost of foreign exchange. Second, there has been an increase in the price of petroleum products in the global market and as a result the price of LPG has risen sharply. So importers have to pay more for imports. Third, the federal government increased VAT on imported LPG, which is 7.5 percent of the value of goods. This cooking gas has cost a lot of money.
I want to look at this issue from a local perspective. To begin with, the implication of this policy is to focus on the use of coal and firewood, as most low-income people cannot afford the current price. Burning charcoal and firewood will undoubtedly have a negative impact on human health and the environment. For example, when coal or firewood is burned, greenhouse gases are released into the atmosphere and the implications are that the temperature rises, which in turn leads to flooding, ocean waves and sea level rise. Montreal protocols on certain international treaties and protocols such as the United Nations Climate Change Convention, the United Nations Ozone Laundering Convention and the depletion of the ozone layer; The country must respect all the agreements signed and ratified. Another environmental impact of this policy is that most rural people will definitely be cut down if efforts are not made to replace deforestation in the south and desertification in the north. Other environmental impacts of this policy include the constant flooding in most regions of the federation, which could lead to significant loss of life and property. Now the question is – what is the way forward? As a remedy for this problem, I would like to suggest the following steps.
- Nigeria Leakside should strive to increase its domestic supply to make its products more accessible and affordable.
- The federal government must immediately repeal the 7.5 percent import tariff on natural gas to alleviate human suffering. I suggest that the 7.5 percent income tax be applied to luxury items such as cosmetics, perfumes, various beverages, etc.
- The federal government should try to strengthen our local currency as much as possible by encouraging the export of local food and raw materials. As far as I know, when the local currency depreciates, there is always inflation, unemployment, high unemployment, suffering and poverty. All we have to do as a country is follow up on our industrialization policy by letter.
- Oladele Oladi Pupo wrote in FESTAC Town, Lagos.