News
Gas flare commercialisation: Economic gains for all, breath of fresh air for communities and oil firms
By Akpandem James
For decades, the sight of roaring flames lighting up the night sky in Nigeria’s Niger Delta has been both a symbol of oil wealth and a reminder of environmental neglect. Gas flaring, long treated as an unavoidable by-product of crude oil production, has inflicted deep scars on host communities, degraded ecosystems, endangered public health and strained relations between oil producers and their hosts. Over time, these tensions contributed significantly to operational disruptions, community unrest and the eventual decision by some international oil companies to divest from onshore oil production in the region.
At the heart of this long-standing conflict lies environmental degradation, with gas flaring as one of its most visible and damaging manifestations. Beyond the obvious pollution of air, soil and water, flaring has been linked to respiratory illnesses, acid rain and heightened safety risks for communities living near oil facilities. For Nigeria, whose economy depends heavily on hydrocarbon revenues for foreign exchange earnings, the consequences extended beyond the Niger Delta, affecting national output, investor confidence and energy security.
These challenges formed part of the critical concerns addressed by the Petroleum Industry Act (PIA) 2021, a landmark reform that redefined the regulatory and commercial framework of Nigeria’s petroleum sector. Sections 104 to 108 of the Act introduced a comprehensive regime for prohibiting, penalising, measuring, managing and ultimately eliminating the flaring of natural gas during petroleum operations. This marked a decisive break from the Associated Gas Re-injection Act (AGRA) of 1979, which had permitted routine flaring with ministerial approval once operators submitted gas re-injection plans.
In practice, the old regime inadvertently encouraged flaring. Penalties for non-compliance were relatively low and often cheaper for operators than investing in gas utilisation infrastructure. The result was decades of routine flaring, with enormous environmental costs and lost economic value. The PIA reversed this logic by making flaring increasingly unattractive while creating clear incentives for gas capture and utilisation. It also streamlined milestone approvals for gas flare elimination facilities, ranging from concept design and front-end engineering design to detailed engineering approvals and final permits to operate, thus providing regulatory clarity and predictability for investors.
With the coming into effect of the PIA in August 2021 and the subsequent inauguration of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in October 2021, Nigeria’s foremost upstream regulator, decisive steps were taken to confront what had become an Achilles heel of the petroleum sector. Central to this effort were clear regulatory guidelines and the relaunch of the Nigerian Gas Flare Commercialisation Programme (NGFCP) in September 2022.
The NGFCP was conceived as a market-driven solution to a decades-old environmental and economic problem. Its core objective is to transform flare gas from a long-standing liability into a valuable economic asset capable of driving industrial growth, strengthening energy security and significantly improving the sector’s environmental credentials. Rather than viewing flared gas as waste, the programme treats it as feedstock for power generation, LPG, petrochemicals and other gas-based industries.
According to the Commission Chief Executive, Engr. Gbenga Komolafe, the ambition is nothing short of transformational. “The target was to end a decades-long challenge and replace it with a wealth-generating, climate-positive opportunity,” he said. By allocating flare sites to competent third-party developers through a transparent and competitive process, Nigeria has activated what he describes as a globally innovative commercial model—one in which waste is converted into value and environmental challenges give way to investment opportunities.
The scale of the programme is significant. The NGFCP targets 49 flare sites across land, swamp and shallow offshore terrains, with aggregate flare volumes estimated at between 250 and 300 million standard cubic feet of gas per day by 2027. Individual sites range from 0.5 to 30 mmscf/d, offering opportunities for both small modular projects and larger gas utilisation schemes. Supported by the fiscal incentives embedded in the PIA, the programme is expected to attract up to $7.2 billion in investment capital while delivering annual emissions reductions of between six and seven million tonnes of CO₂ equivalent.
Beyond climate benefits, the economic implications are far-reaching. Increased gas supply into the domestic market will deepen in-country value addition, stimulate gas-based industrialisation and reduce reliance on imported fuels. For host communities in the Niger Delta, the programme promises cleaner air, new infrastructure, employment opportunities and enhanced social development. For oil producers, it offers relief from flare penalties, reduced environmental and operational liabilities and improved environmental, social and governance (ESG) performance—an increasingly important factor in global investment decisions.
The NGFCP also aligns fully with Nigeria’s Energy Transition Plan (ETP) and its Nationally Determined Contributions under global climate frameworks. As noted by Engr. Komolafe, the programme is not merely a policy initiative but a core pillar in Nigeria’s effort to eliminate routine flaring, reduce greenhouse gas emissions and enhance the country’s credibility in international energy transition commitments.
Progress under the programme has been steady. To date, 28 frontline NGFCP awardees have been issued final permits to access flare gas, marking a critical transition from planning to implementation. The programme itself has been structured in three phases: the bidding process, which began in 2023 and culminated in the announcement of 42 awardees in September of that year; a negotiation phase in 2024 covering technical, commercial and contractual terms, followed by permit issuance in 2025; and a final execution phase, scheduled to commence in 2026, aimed at delivering actual flare-out projects.
This transition was formally underscored on Friday, December 12, when the NUPRC issued Permits to Access Flare Gas (PAFG) under the 2022 NGFCP. Presiding over the ceremony, Engr. Komolafe described the event as a milestone achievement for Nigeria’s upstream sector, a strategic inflection point signalling the shift from legacy challenges to market-driven solutions that unlock economic opportunities, strengthen energy security, reduce emissions and improve operational efficiency across the industry.
More importantly, the issuance of permits marked the end of commercial negotiations and the beginning of real project execution. It signalled a fundamental change in how flare gas is perceived, not as waste or an environmental burden, but as a commercially viable resource capable of driving industrial growth and national prosperity. In regulatory terms, it represented a decisive move from policy design and bidding to tangible implementation under the NGFCP.
The achievements recorded so far are notable. The programme has awarded 49 flare sites across three terrains to 42 bidders, attracted an estimated $2 billion in foreign direct investment for gas development projects and placed Nigeria as a pioneer in structured flare gas commercialisation. It has also created a fast track towards fulfilling the Presidential mandate of deepening domestic gas utilisation while enhancing local participation in the sector.
Recognising that success depends on effective delivery, the NUPRC has established continuous support mechanisms for permit holders. These include streamlined regulatory approvals, hands-on guidance through a dedicated NGFCP Project Management Office, facilitation of access to financing, including carbon finance in collaboration with development partners, and sustained advocacy for international support.
However, the responsibilities are clearly shared. Producers are obligated to deliver flare gas in line with agreed quantities and quality, ensure accurate metering and transparent reporting, provide safe access to flare sites and align host community engagements with permit holders. Permit holders, on their part, must design, finance, build and operate gas gathering and utilisation facilities to approved technical and safety standards, meet flare-out milestones, maintain robust health, safety and environmental systems, and manage fair relationships with host communities.
Once projects commence, routine gas flaring is expected to cease, except in limited emergency situations expressly permitted by regulation. The ultimate expectation is clear: visible projects on the ground that convert flare stacks into engines of economic value.
If fully implemented, gas flare commercialisation under the NGFCP will stand as one of the most consequential reforms in Nigeria’s upstream petroleum sector. It offers a compelling example of how environmental responsibility can be aligned with economic growth, delivering cleaner air for communities, operational relief for oil firms and sustainable value for the national economy. In extinguishing the flames of routine flaring, Nigeria may well be lighting the path to a more resilient, inclusive and climate-conscious energy future.
- Akpandem James is a Fellow of the Nigerian Guild of Editors and member Governing Board of the Nigerian Institute of Journalists, Lagos
Godswill Akpabio, Nigeria’s Senate President, on Friday, pushed back against reports quoting him as promising to retrieve tickets from winners of the All Progressives Congress (APC), in lieu of sitting senators, who failed at the party’s primaries recently.
He also spoke on the issue of the comprehensive probe called by Adams Oshiomhole, former Governor of Edo State, now Senator representing Edo North at the National Assembly, clarifying his position on the matte, which has since raised a lot of dust within the polity.
The twin issues, dominated the outcome of proceedings on Thursday, on the day the Senators returned after going on recess to participate in the party primaries that took place across board in Nigeria in line with the electoral outlay of the Independent National Electoral Commission (INEC).
Akpabio, former Governor of Akwa Ibom State, former Minister of the Niger Delta and now Chairman of the National Assembly, who conveyed his position through Eseme Eyiboh, his spokesman, denied ever making such promise to his colleagues, as it went against the grain of democratic ethos, which he had vowed to uphold.
Regarding the probe of the military, Akpabio, in the statement, stressed the need not to distract the institution, but provide it with all the needed support, giving the parlous security situation in the country, its personnel had been battling relentless.
The statement read in full: “The attention of the Office of the President of the Senate has been drawn to misleading reports circulating in sections of the media suggesting that the President of the Senate has promised to secure senatorial tickets for senators who lost their party primaries.
“We must categorically assert that this report does not reflect the position of the President of the Senate. For the record, Senator Akpabio has neither made nor authorised to be made such promise.
“What the President of the Senate actually said, in the course of interacting with his colleagues, was to empathise with senators who were affected by the outcome of their primary elections.
“He assured them that the leadership of the All Progressives Congress, (APC), is actively working to address all issues arising from the primaries and that the final list of candidates will be released in due course in line with the party’s constitution and electoral guidelines.
“Senator Akpabio remains committed to party discipline, due process, and the internal mechanisms of the APC for resolving disputes. He will not interfere with the autonomous processes of the party or make commitments that are outside the purview of the National Assembly leadership.
“The office also notes another report quoting a distinguished Senator on the need for the Senate to probe the military over recent security incidents. While legislative oversight is a constitutional responsibility of the National Assembly, Senator Akpabio’s position is that this is not the opportune moment for a public probe of the Armed Forces.
“At a time when our troops are engaged on multiple fronts against terrorism, banditry and other threats to National Security, subjecting the military to a public legislative inquisition could undermine morale and operational focus.
“The Senate President believes strongly that support, collaboration and closed-door engagements with security agencies are more productive at this critical time. Oversight will be exercised responsibly, without creating distractions that embolden adversaries or divert attention from the urgent task of securing Nigeria.
“Senator Akpabio urges the media and the public to disregard sensational and inaccurate misrepresentation of his remarks and to always seek clarification from his office before publication.”
No candidate was imposed neither was any member barred from participating in the process, the Nigeria Democratic Congress (NDC), said on Thursday, which defending the integrity of the exercise, which ended on May 29.
In a statement by Ikenna Enekweizu, National Secretary, party said that all aspirants were given a fair opportunity to participate in the democratic process, adding that the selection process was driven by consultation, consensus-building, and stakeholder engagement through established leadership structures across the country.
Stressing that its National Secretariat was never involved in the business of picking, choosing, or imposing candidates on any constituency or state, contrary to allegations that have emerged following the conclusion of the primaries, the statement added: “At no time has the NDC National Secretariat been involved in the business of picking, choosing, or imposing candidates on any constituency or state.
“Aspirants seeking elective positions were directed to engage with caucus leaders, stakeholders, and grassroots members in their respective states, who were responsible for consultations and recommendations based on local political realities. In the South-East geopolitical zone, our presidential candidate, Peter Obi, joined the party with an existing network of respected political leaders and elder statesmen who currently serve as caucus heads across the region.
“These include former governors and senior political figures such as Sam Egwu, Okwesilieze Nwodo, and Achike Udenwa, among others. The party explained that these leaders were tasked with conducting stakeholder consultations and helping build consensus around aspirants in their respective states.
“These leaders were entrusted with conducting stakeholder consultations, building consensus, and making recommendations to the party based on their understanding of the peculiar political dynamics in their respective states.
“Aspirants who disagreed with stakeholder recommendations were not excluded from the process but were allowed to test their popularity through grassroots primaries. This process was conducted without prejudice to the rights of any aspirant. Where aspirants disagreed with recommendations made by stakeholders or caucus leaders, they were free to test their popularity through the democratic process at the grassroots level, and this was duly accommodated,” the party said.
Addressing concerns raised by some aspirants following the primaries, the NDC acknowledged reports of individuals prematurely declaring themselves candidates as well as complaints regarding aspects of the process.
However, it maintained that such issues had been referred to the party’s appeal panel and leadership for resolution.
The statement also highlighted the party’s commitment to affirmative action and greater female participation in politics, noting that efforts had been made to encourage women to seek elective offices while also considering the interests of serving lawmakers.
Looking ahead, the NDC announced plans to begin a broad reconciliation process aimed at healing divisions and strengthening party unity after the conclusion of the primaries.
“As resolved at yesterday’s NEC meeting, we now look forward to the commencement of a comprehensive reconciliation process. We count on our esteemed caucus leaders, state chairmen, stakeholders, and party leaders to engage all aspirants and members in the interest of unity, cohesion, and the continued growth of our party.”
The party reiterated that its role throughout the nomination process was primarily to welcome new members and aspirants, reassure them of its commitment to fairness and transparency, and direct them to the appropriate caucus structures for participation in party affairs.
According to the NDC, the approach reflects its commitment to internal democracy, consultation, inclusiveness, and respect for established leadership structures as it continues preparations for future elections.
Idi Abbas, Chief of the Naval Staff (CNS), on Friday, prayed for a legislation to establish a special court to try those caught in the business of stealing crude oil in Nigeria, saying the current general law was not too helpful in stemming the tide.
It was also a day he claimed that the powerful forces behind the syndicate had a way of projecting fronts while remaining behind the scene, which made it almost impossible to track them to face justice.
In fact, Abbas, a Vice Admiral, revealed that the operation was so perfect that those arrested at illegal refining sites were usually low-level operatives with little knowledge of the larger criminal network.
A guest on Sunrise Daily, a breakfast programme on Channels Television, the Naval Chief noted that many of those apprehended during operations are merely workers paid small sums, adding that such a complex structure of oil theft syndicates made it difficult to identify and prosecute the individuals who orchestrate the criminal enterprise.
“Most of the faces behind these thefts are not really known or are not the ones we always catch. The ones we get at most of the illegal refinery sites are just being given some paltry sum, while the big masquerades are the ones that make the real money. Prosecuting suspects is often complicated by the fact that many of those arrested have little or no information about the people directing the operations.
“In trying to prosecute some of these people that we get, some of them don’t even know who they are working for. So, the network is a very delicate one.
“But despite the challenges the Nigerian Navy and other security agencies are continually refining their strategies to counter the evolving tactics of oil thieves. As they are evolving strategies, we are also evolving new strategies. Like I keep saying, technology is the way forward. With that, we have been able to reduce the level of theft.”
Stating that the adoption of technology-driven surveillance, intelligence gathering and monitoring systems had significantly enhanced efforts to curb crude oil theft and protect critical national assets, he reaffirmed the commitment of the Nigerian Navy to sustaining operations against oil theft, stressing that collaboration among security agencies, stakeholders and host communities remains essential to safeguarding the nation’s oil resources.
The naval boss while assuring that Nigeria’s coastal and riverine communities are relatively safe, said the Nigerian Navy had made significant progress in reducing threats along the coast, particularly illegal oil-related activities and sea robbery.
“As it stands today, I can say that our coastal areas and the riverine areas are relatively safe. While crude oil theft and isolated cases of sea robbery remain areas of concern, the Navy has been largely successful in containing such activities through intensified surveillance and enforcement operations.
Hear him: “What we are contending with mostly there is the issue of crude oil theft and some pockets of sea robbery, which we are able to curtail. There is need for the establishment of a special court dedicated to prosecuting maritime crimes.
“This court will focus exclusively on cases involving crude oil theft and other maritime-related offences, helping to address delays associated with the conventional judicial process. The establishment of such a court would significantly accelerate the dispensation of justice and reduce the burden currently placed on the Navy in maintaining seized vessels and other exhibits pending the conclusion of lengthy court processes.
“If we have that in place, I believe the dispensation of justice will be done much faster and then ease the burden of keeping and maintaining some of the arrested vessels, which will be taken off from us because we spend a lot to maintain those vessels under our custody.”
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