The level of gas flaring carried out by oil and gas enterprises engaged in activities within Nigeria has surged to a substantial 138.7 million metric standard cubic feet of gas (SCF) throughout the initial half of 2023. Information extracted from the Nigerian Oil Spill Monitor, a division of the Nigerian Oil Spill Detection and Response Agency (NOSDRA), reveals that the recorded volume of flaring during H1 2023 showcases a noteworthy escalation of 9.1% in comparison to the corresponding period in H1 2022, which totaled 126.1 million SCF.
The cumulative gas flaring for this duration has led to an emission tally amounting to 7.4 million metric tonnes of carbon dioxide (CO2), equating to an estimated value of approximately US$485.3 million. When this monetary value is recalculated using the I&E window exchange rate, the equivalent in the local currency stands at roughly ₦373 billion, symbolizing the nation’s financial loss throughout this span.
In the prior year, an emission sum of 6.7 million metric tonnes of CO2 was documented, incurring a cost of US$441.2 million, or around ₦338 billion when computed in the domestic currency. Disparate reports produced by both NOSDRA and the World Bank have pinpointed Nigeria’s losses due to gas flaring in 2022, ranging from a lower estimate of US$761.2 million to a higher figure of US$893.1 million.
Spanning the months between January and April 2023, oil and gas enterprises operating within Nigeria flared a substantial 92.3 million SCF, with an estimated worth of ₦150.8 billion. This amplified gas flaring trend continues unabated, despite the regulatory penalties that the Federal Government has imposed on companies found in non-compliance.
As of April, the defaulting companies were liable for penalties amounting to $184.6 million (equivalent to ₦85.7 billion) for infractions incurred over the four-month period. In contrast, the Federal Government has announced the collection of $85.1 million, equaling ₦44.4 billion, as the total sum of gas flare penalties retrieved from oil and gas enterprises spanning the interval from January 2023 to June, at an average exchange rate of ₦521.2/$ during 2023.
While Nigeria has repeatedly established ambitions to eliminate gas flaring, the objective remains distant, given the nation’s persistent standing among the top seven global gas-flaring countries.