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Nigeria Loses Billions to Gas Flaring



According to the National Oil Spill Detection and Response Agency (NOSDRA), the Nigerian government suffered losses of approximately N847 billion due to gas flaring between January 2022 and August 2023.


In their latest gas flare report, it was revealed that oil and gas companies operating in the country flared 147.1 billion SCF of gas valued at $514.9 million (about N390 billion using the Central Bank of Nigeria's exchange rate).


Additionally, from January to August 2023, these companies flared 171.1 billion standard cubic feet of gas valued at about $599 million (N453 billion). This cumulative loss represents a 16.28% increase compared to the same period in 2022.


The report also highlighted the environmental impact, as this amount of gas could have generated 17,100 gigawatts/hour of electricity and resulted in the emission of 9.1 million tons of carbon dioxide into the atmosphere.

Furthermore, the offending companies were subject to penalties totaling $342 million (about N251 billion), although a significant portion of these penalties remained uncollected by the Federal Government.


In comparison, between January and August 2022, oil firms were liable for penalties of approximately $294 million (N223 billion) for gas flaring, which had the potential to generate 14,700 GWh of electricity and led to carbon dioxide emissions of 7,800 tonnes.


The companies responsible for these environmental violations included Shell Petroleum, Development Company, Nigerian Petroleum Development Company, Chevron Nigeria, Mobil Oil, Elf Petroleum Nigeria, Nigeria Agip Oil Company, Addax Petroleum, Texaco Overseas (Nigeria), Cromwell, South Atlantic Petroleum, and others.


These companies were involved in gas flaring from various Oil Mining Leases and Oil Prospecting Licenses. This report underscores the urgency of addressing gas flaring and aligning with the Federal Government's pledge to the United Nations to achieve zero gas flare by 2060, a decade following the UN's 2050 target.


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