Onome Amuge
Nigeria’s power generation sector experienced a setback in the first quarter of 2025, losing an estimated 9,900 Gigawatts per hour (GWh) of potential electricity output, attributed to operational inefficiencies and persistent gas flaring.
This represents a 16 percent increase in generation losses compared to the 8,300 GWh shortfall suffered in the corresponding period of 2024.
Data gleaned from the latest report by the National Oil Spill Detection and Response Agency (NOSDRA) reveals the economic and environmental cost associated with this energy wastage. According to NOSDRA figures, the 98.8 million standard cubic feet (mscf) of natural gas flared during the first quarter carried a monetary value of $345.9 million.
Concerning the environmental repercussions, NOSDRA estimates that the volume of gas flared during the period under review resulted in a carbon dioxide emission equivalent of 1.6 million tonnes, further exacerbating Nigeria’s contribution to greenhouse gas emissions and undermining global climate change mitigation efforts.
NOSDRA lamented the continued practice of gas flaring in Nigeria, a decades-long issue dating back to the 1950s, which persistently releases harmful carbon dioxide and other gaseous substances into the atmosphere, despite repeated government pledges to curb the practice.
Prior to the report, the federal government had set an ambitious target to end routine gas flaring in the country by 2030. In line with this aspiration,Iziaq Salako, minister of state for environment,recently announced that NOSDRA plans to intensify its engagement with stakeholders in the oil and gas sector to address methane mitigation and overall reduction in greenhouse gas emissions.
Methane, a particularly potent greenhouse gas with a significantly higher warming potential compared to carbon dioxide, poses a major threat to both current and future generations’ health and well-being, as well as undermining critical climate protection goals.
Experts contend that reducing methane emissions, particularly within the oil and gas sector, is crucial for strengthening climate action and unlocking substantial benefits for public health, food security, and broader economic development.
Meanwhile, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is highlighting the potential of the country’s Gas Flare Commercialisation Programme (NGFCP) to attract notable investment into the oil and gas sector.
Gbenga Komolafe, chief executive officer of NUPRC, stated that the NGFCP has the potential to unlock approximately $2.5 billion in investment within the industry.
Komolafe further elaborated on the broader benefits of the programme, stating that in addition to generating substantial revenue for the government, the NGFCP is also expected to create a significant number of much-needed jobs within the Nigerian economy.
He also outlined NUPRC’s commitment to embedding sustainability into upstream operations as the global energy landscape increasingly shifts towards a low-carbon future. “As the global focus shifts toward a low- carbon future, NUPRC is embedding sustainability into seven upstream operations, mitigating environmental risks and protecting communities,” Komolafe stated.
Key actions being undertaken by the regulatory body include the management of methane and other greenhouse gas emissions, fostering energy efficiency across operations, promoting the development and utilisation of carbon credits, actively encouraging investments in Carbon Capture Utilisation and Storage (CCUS) technologies, and rigorously enforcing Environmental, Social, and Governance (ESG) goals within the upstream petroleum sector.
Komolafe reiterated the transformative potential of the NGFCP. “Through the Nigeria Gas Flare Commercialisation Programme (NGFCP), approximately $2.5 billion in investment will potentially be unlocked, generating huge revenue, and creating a significant number of jobs. We have been deliberate in efforts at social inclusiveness for enhancing host community development,” he affirmed.
Despite these ongoing initiatives and targets, the increase in power generation losses due to gas flaring in the first quarter of 2025 underscores the persistent challenges in effectively curbing this environmentally damaging and economically wasteful practice.
According to analysts, the monetary value of the flared gas, coupled with the carbon emissions, raises serious questions about the efficiency of current measures and the urgent need for more stringent enforcement and innovative solutions to harness Nigeria’s vast gas resources for domestic power generation and export, rather than simply burning them off.
As it stands, the ability of the government to meet its 2030 gas flaring cessation target will be closely monitored by both domestic and international stakeholders, particularly in light of the continued upward trend in these preventable energy losses.
It is a no-brainer that the successful commercialisation of flared gas, as touted by NUPRC, will be critical in turning this environmental liability into a valuable economic asset and boosting Nigeria’s power generation capacity.
