Further analysis of data from the National Oil Spill Detection and Response Agency (NOSDRA) reveals a direct link between these power losses and the alarming rate of gas flaring. In Q1'25 alone, an estimated 98.8 million standard cubic feet (mscf) of gas was flared, translating to a monetary loss of $345.9 million. This practice not only deprives the nation of a valuable energy resource but also incurs substantial financial penalties. NOSDRA indicated that defaulting companies, including major International Oil Companies (IOCs), are liable for fines totaling $197.7 million (approximately N318.3 billion).
A closer examination of the gas flaring data shows a concerning trend across different operational environments. Onshore operations accounted for a larger share of the flaring, rising by 10 percent to 67.1 mscf, while offshore companies flared 31 mscf. Beyond the economic implications, NOSDRA highlighted the significant environmental impact of this practice, stating that the flared gas in Q1'25 resulted in an estimated 1.6 million tonnes of carbon dioxide emissions.
NOSDRA lamented the continued prevalence of gas flaring in Nigeria, a practice that has persisted since the 1950s, releasing harmful greenhouse gases into the atmosphere. While the Federal Government has set an ambitious target to end gas flaring by 2030, the recent data underscores the urgency of intensified action.
In response to this challenge, the Minister of State for Environment, Dr. Iziaq Salako, announced NOSDRA's plans to engage stakeholders in the oil and gas sector to address methane mitigation and reduction, aligning with the 2030 gas flaring cessation goal. Methane, recognized as a significantly more potent greenhouse gas than carbon dioxide, poses a severe threat to environmental health and climate protection efforts. Experts emphasize that reducing methane emissions, particularly within the oil and gas industry, is crucial for strengthening climate action and unlocking benefits in public health, food security, and economic development.
Meanwhile, Gbenga Komolafe, the Chief Executive Officer (CEO) of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), highlighted the potential of the country’s Gas Flare Commercialisation Programme (NGFCP) to attract an estimated $2.5 billion in investment to the oil and gas sector. He emphasized that beyond generating substantial revenue, the NGFCP holds the promise of creating a significant number of jobs.
Komolafe further elaborated on NUPRC's commitment to embedding sustainability within upstream operations, aiming to mitigate environmental risks and protect local communities. Key strategies include managing methane and other greenhouse gas emissions, promoting energy efficiency and carbon credits, encouraging investments in Carbon Capture Utilisation and Storage (CCUS) technologies, and enforcing Environmental, Social, and Governance (ESG) goals. He reiterated that the NGFCP is a deliberate effort towards social inclusiveness and enhancing the development of host communities.
The persistent power generation losses coupled with the continued high levels of gas flaring present a complex challenge for Nigeria. While government initiatives and regulatory efforts are underway, the data from Q1'25 underscores the need for more robust and effective strategies to curb these detrimental practices, ensuring both energy security and environmental sustainability for the nation.