Report by the National Oil Spill Detection and Response Agency (NOSDRA), has shown that oil and gas companies operating in Nigeria flared 92.3 million standard cubic feet (mscf) of gas between January and April 2023.
The report stated that the activity is estimated to be worth N150 billion, representing a 79.5 percent increase compared to the 50.3 mscf of gas flared during the same period in 2022.
The NOSDRA’s gas flare tracker revealed that the value of the flared gas during the four-month period translated to a loss of $323.1 million or approximately N150.08 billion (using the CBN rate of N464.5 per dollar).
As a result, the responsible oil producing companies are expected to pay penalties totaling $184.6 million (equivalent to N85.7 billion) for violating the gas flaring laws.
The report also highlighted that the volume of gas flared during this four-month period is equivalent to emitting 4.9 million tonnes of carbon dioxide and could potentially generate 9,200 gigawatts of electricity per hour.
The Petroleum Industry Act 2021 (PIA), which was signed into law by former President Muhammadu Buhari on August 16, 2021, serves as the primary framework for regulating and gradually eliminating gas flaring in Nigeria.
Section 104 of the PIA makes gas flaring illegal, except in cases of emergency, exemption from the Nigerian Upstream Petroleum Regulatory Commission, or when it is considered acceptable as a safety practice under established regulations.
Additionally, Section 105 of the PIA imposes penalties on individuals who violate Section 104, as specified in the Flare Gas (Prevention of Waste and Pollution) Regulations 2018 (The Regulation).