By Obiabin Onukwugha
The Federal Government of Nigeria has lost a whooping $2 billion, an equivalent of N3.156 trillion, to gas flared in the last five years by energy companies in the country.
The government also lost the sum of $1.1 billion (approximately N1.2 trillion) in uncollected fines arising from the gas flared by the oil and gas companies.
These data were obtained exclusively by NatureNews from the latest reports of the federal agency responsible for oil incidents in Nigeria, the National Oil Spill Detection and Response Agency (NOSDRA)
NatureNews notes that gas, which is burnt off as part of the oil production process, has been flared in Nigeria since the 1950s when oil was first discovered in commercial quantity in the Niger Delta region.
Stakeholders who noted that gas flaring is a source of environmental and health concerns in the Niger Delta, have argued that the trend has continued despite efforts by the federal government and relentless advocacy by environmental activists on the need to curtail it.
Aside from the negative impact on the environment, NatureNews reports that average Nigerian households are currently grappling with high cost of cooking gas, with many turning to firewood as alternative sources for cooking.
Checks by NatureNews indicated that gas currently sells at N1,500 per kilogram, even as the Nigerian government has been unable to collect the fines accruable from the flared gas.
Exclusive investigation by NatureNews revealed that gas flared by oil companies between March 2020 and February 2024 amounted to 566.8 million standard cubic feet (scf)
The body also reported that carbon dioxide (CO2) emissions amounted to 30.1 million tonnes within the five year period. It also stated that penalties payable to the flared gas amounts to $1.1 billion.
NOSDRA noted in its latest report that the gas flared within this period has the capacity to generate 56,700 GigaWatt hours of power generation.
It reported that in 2023, gas flared in Nigeria was estimated at 15 million tonnes of CO2 emitted into the atmosphere contributing to global warming.
NOSDRA also stated that useful natural gas valued at $0.96 billion was burned by the Nigerian oil and gas industry in 2023 alone.
The agency said fines was valued at $551 million, many of which are not collected by the federal government, pointing out that 27,500 GigaWatt hours of potential power generation that would have served about 625 million Nigerian citizens went to waste.
NOSDRA, in its latest report, also pointed out that 29.7 million scf gas, valued at $103.9 million, was flared between January and February this year.
It says this flaring attracts a penalty of $59.3 million, with the capacity to generate 3.0 thousand GWh of electricity, with 1.6 million tonnes CO2 emissions.
