Nigerian Govt Faces $16 Trillion Loss From Decade-Long Natural Gas Flaring- Report

November 21, 2023
Nigerian Govt Faces $16 Trillion Loss From Decade-Long Natural Gas Flaring- Report

The Federal Government of Nigeria has been revealed to have incurred an estimated loss of $16 trillion over the past decade due to natural gas flaring, as detailed in the Energy Institute’s report.

Echoing concerns raised in the report, Hebrew Energy disclosed that the cumulative flaring, amounting to 86.5 billion cubic meters, led to this colossal loss. The value of each 1 billion cubic meters of natural gas stands at approximately $183 million, sparking urgent calls for action.

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In a move to combat this issue, the Nigerian Upstream Petroleum Regulatory Commission granted 42 firms gas flaring licenses in the 2022 Nigerian Gas Flare CommercialiZation Programme auction process.

Governorship Election Live Updates indicate a growing emphasis on supporting the United Nations 2050 zero gas emission agenda, with a commitment from the former President, Muhammadu Buhari, aiming to halt gas emission by 2060.

READ ALSO: German Chancellor Pledges $4.4 Billion For Africa-EU Green Energy Initiative

Despite penalties imposed on oil companies for gas flaring, which amounted to fines totaling $25.3 million in July, concerns persist regarding the adverse environmental and economic impact. With the introduction of the Nigerian Gas Flare Commercialisation Programme, the focus now shifts toward attracting investments and establishing a transparent market mechanism to allocate gas flares to competent third-party investors.

Speaking exclusively, Engr Gbenga Komolafe, Chief Executive of the Nigerian Upstream Regulatory Petroleum Commission, emphasized, “The wasteful disposal of natural gas is not only fraught with deleterious health/environmental consequences but also a major source of resource waste and value erosion to the country.”

The urgency to address this critical issue remains paramount, not only to curb economic losses but also to mitigate the adverse effects on public health and the environment.

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Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.

Emmanuel Ochayi

Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.

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