Abuja - The Lagos State Government has assured foreign firms of a friendly and conducive business environment.
The State Commissioner for Energy and Mineral Resources, Taofiq Ajibade Tijani, gave the assurance during the official signing of technical partnership deal between RWE AFRICA LPG Equipment Co (ALPGCO), a subsidiary of RUNSGAS Nigeria Ltd, and a German Equipment Manufacturing Company, KAUTEX MASCHINENBAU.
Tijani stated that the essence of state involvement in the signing ceremony was to encourage private business concerns with incentives to create enabling environment to participate, generate employment, create wealth, boost revenue generation and ensure manpower development in the state.
He said the state was pleased to host the LPG Equipment manufacturing plant, the first of its kind in the sub region of Africa, because of its inherent advantages that will be of great benefit to Lagosians.
He stressed that the state was blessed with abundant human and natural resources with potential for investment that could sustain further industrial development if well explored and harnessed.
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Tijani noted that the establishment of an LPG cylinder manufacturing plant in the state was long overdue because Nigeria had the largest gas reserve estimates in the region, yet had the least utilization percentage in the region.
In addition, 80 percent percent of refined petroleum product in Nigeria market is consumed in the state, which has the largest market in Nigeria.
Chairman and Chief Executive Officer of RUNGAS Ltd Runsewe Olanrewaju, said the technical partnership deal would ensure the exclusivity of the production equipment for type IV Composite Cylinders in Nigeria and Ghana.
“The expected outcome of the deal is that ALPGCO will have the exclusive right to produce type IV Composite cylinders in Nigeria and Ghana,” he said.
He added that the type IV Composite cylinder was cheaper, safer, lighter and easy to carry and fitted with gauge valve as against the steel cylinders currently in the market.
- CAJ News