The Federal Government has incurred a staggering loss of approximately N847 billion due to gas flaring between January 2022 and August 2023, as per data retrieved from the National Oil Spill Detection and Response Agency (NOSDRA).
In its most recent gas flare report, NOSDRA revealed that oil and gas companies operating in Nigeria flared 147.1 billion standard cubic feet (SCF) of gas, equivalent to $514.9 million or about N390 billion (based on the Central Bank of Nigeria’s current exchange rate of N757.5 to a dollar) between January and August 2022. In the same period in 2023, these companies flared 171.1 billion SCF of gas, valued at approximately $599 million or N453 billion. This cumulative loss accounts for N847 billion over the comparative eight-month periods.
The report indicated that the volume of gas flared in the first eight months of 2023 witnessed a 16.28 percent increase compared to the same period in 2022. Moreover, the gas flared during this timeframe had the potential to generate 17,100 gigawatts/hour of electricity while emitting 9.1 million tons of carbon dioxide into the atmosphere.
NOSDRA also revealed that the offending companies were subject to penalties amounting to $342 million or approximately N251 billion. However, a significant portion of these penalties was not collected by the Federal Government.
In contrast, during January to August 2022, oil companies were liable for penalties of around $294 million or N223 billion, and the flared gas had the potential to generate 14,700 GWh of electricity while releasing 7,800 tonnes of carbon dioxide emissions.
Several oil companies, including Shell Petroleum Development Company, Nigerian Petroleum Development Company, Chevron Nigeria, Mobil Oil, Elf Petroleum Nigeria, Nigeria Agip Oil Company, Addax Petroleum, Texaco Overseas (Nigeria), Cromwell, and South Atlantic Petroleum, among others, were identified by NOSDRA as responsible for gas flaring. These companies conducted gas flaring activities across numerous Oil Mining Leases and Oil Prospecting Licenses.
The release of this report coincides with the Nigerian government’s commitment, made in 2020 to the United Nations, to eliminate gas flaring entirely by 2060, aligning with the UN’s 2050 target.
