Losses to Gas Flaring Up 17% to 15,400gwh in 5 Months

Nigeria's Persistent Gas Flaring Problem Worsens, Costing Billions

Nigeria continues to grapple with the persistent issue of gas flaring, a practice that releases harmful greenhouse gases into the atmosphere and squanders valuable energy resources. Despite ongoing efforts by the government to curb this environmental menace, the problem appears to be escalating, resulting in significant economic losses and environmental damage.

Recent data paints a concerning picture of the scale of the problem. Between January and May 2025, Nigeria lost an estimated 15,400 Gigawatt-hours (GWh) of power generation potential due to gas flaring. This represents a substantial 17.5% increase compared to the 12,700 GWh lost during the same period in 2024, highlighting the growing challenge facing the nation.

The National Oil Spill Detection and Response Agency (NOSDRA) estimates that the 539.2 million standard cubic feet (mscf) of gas flared during this five-month period carries a monetary value of $154.1 million. This wasted resource could have been utilized for power generation, industrial processes, or even exported, contributing to the nation's economic growth. Furthermore, NOSDRA has indicated that the defaulting companies, which include major International Oil Companies (IOCs), face potential fines totaling $308.1 million (approximately N318.3 billion) for their contribution to the flaring.

Analysis of the data reveals that onshore operations are primarily responsible for the increased flaring. Companies operating onshore flared 102.4 mscf of gas, a significant increase compared to the 51.7 mscf flared by offshore operations. This disparity suggests that different regulatory challenges or operational practices may be contributing to the higher flaring rates onshore.

The environmental consequences of gas flaring are also severe. NOSDRA estimates that the volume of gas flared during the period under review resulted in the emission of 8.2 million tonnes of carbon dioxide into the atmosphere. This contributes significantly to Nigeria's carbon footprint and exacerbates the effects of climate change. The agency has voiced its concern that gas flaring has continued in Nigeria since the 1950s, releasing carbon dioxide and other harmful gases into the atmosphere, despite ongoing efforts to mitigate the practice.

Government Initiatives and the Path Forward

The Nigerian government recognizes the urgency of addressing gas flaring and has implemented various initiatives to tackle the problem. Dr. Iziaq Salako, the Minister of State for Environment, has stated that NOSDRA is committed to aligning with national aspirations for methane mitigation and reduction in the oil and gas sector. This includes engaging with stakeholders to develop and implement effective strategies for reducing emissions.

One key initiative is the Nigeria Gas Flare Commercialisation Programme (NGFCP), spearheaded by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). According to Gbenga Komolafe, the CEO of NUPRC, the NGFCP has the potential to unlock $2.5 billion in investment in the oil and gas sector. This program aims to harness flared gas and convert it into a valuable resource, creating economic opportunities and reducing environmental impact.

The Potential Benefits of the NGFCP

The NGFCP holds considerable promise for transforming the gas flaring landscape in Nigeria. The potential benefits include:

• Attracting Investment: The program is designed to attract significant investment into the oil and gas sector, stimulating economic growth and creating new opportunities.
• Generating Revenue: By commercializing flared gas, the NGFCP can generate substantial revenue for the government and private sector, contributing to the nation's economic diversification.
• Creating Jobs: The development and operation of gas commercialization projects will create a significant number of jobs, boosting employment and improving livelihoods.
• Reducing Emissions: By capturing and utilizing flared gas, the NGFCP will significantly reduce greenhouse gas emissions, contributing to Nigeria's climate change mitigation efforts.
• Promoting Sustainability: The NGFCP aligns with global efforts to transition to a low-carbon future, promoting sustainable practices in the oil and gas industry.

NUPRC's Commitment to Sustainability

The NUPRC is committed to embedding sustainability into upstream operations, mitigating environmental risks, and protecting communities. Key actions include:

• Managing methane and greenhouse gas (GHG) emissions.
• Fostering energy efficiency and carbon credits.
• Promoting investments in Carbon Capture Utilisation and Storage (CCUS) technologies.
• Enforcing Environmental, Social, and Governance (ESG) goals.

The NUPRC emphasizes social inclusiveness and aims to enhance host community development through its initiatives. This commitment to sustainable practices and community engagement is crucial for ensuring the long-term success of the NGFCP and other environmental protection efforts.

Challenges and the Way Forward

Despite the potential of the NGFCP and other government initiatives, significant challenges remain in tackling gas flaring in Nigeria. These include:

• Regulatory Enforcement: Ensuring that oil companies comply with regulations and penalties for gas flaring is crucial. Stronger enforcement mechanisms are needed to deter non-compliance.
• Infrastructure Development: Developing the necessary infrastructure to capture, process, and transport flared gas requires significant investment and coordination.
• Technological Solutions: Implementing advanced technologies for gas capture and utilization is essential for maximizing the efficiency of commercialization efforts.
• Community Engagement: Engaging with local communities and addressing their concerns is vital for ensuring the social acceptability and sustainability of gas flaring reduction projects.

Addressing these challenges will require a concerted effort from the government, oil companies, and other stakeholders. By strengthening regulations, investing in infrastructure and technology, and engaging with communities, Nigeria can make significant progress in curbing gas flaring and unlocking the economic and environmental benefits of its vast gas resources. The country's commitment to sustainability and a low-carbon future depends on it.