Speaking on Friday at the permit issuance ceremony in Abuja, NUPRC Chief Executive, Mr. Gbenga Komolafe, described the development as a strategic milestone in Nigeria’s energy transition journey.
Re-inaugurated in 2022, the Nigerian Flare Gas Commercialization Programme (NGFCP) aims to eliminate routine gas flaring by allocating flare sites to qualified third-party companies. This allows the firms to commercialize the gas for power generation, petrochemicals, fertilizer production, Liquefied Petroleum Gas (LPG) supply, and other industrial uses.
Komolafe said the NGFCP remains one of Nigeria’s key climate action initiatives, designed to convert wasted flare gas into economic value while reducing environmental impact. He added that the permits issued under the 2020–2021 flare gas commercialization bid round mark a shift from decades of operational challenges to a commercially driven model that enhances energy security and improves industry efficiency.
“From 300 initial expressions of interest, 139 applicants qualified for the RFP stage. Following a competitive and transparent evaluation process, 42 successful bidders were awarded 49 flare sites, an achievement widely recognized for its integrity and rigour,” Komolafe said.
He further noted, “Today, we are pleased to announce that 28 awardees have fully executed the required suite of commercial agreements—including the Connection Agreements, Milestone Development Agreements, and Gas Sales Agreements—and now qualify to receive the Permit to Access Flare Gas.”
“These entities represent a strong blend of operational capability, financial readiness, and technological competence,” Komolafe said.
He noted that the redesigned programme has enhanced commercial viability and regulatory consistency, particularly after disruptions caused by COVID-19 and the implementation of the Petroleum Industry Act (PIA).
Highlighting the anticipated impact of the NGFCP, Komolafe stated that between 250 and 300 million standard cubic feet of gas currently flared daily will be captured and commercialized.
“Nigeria will reduce an estimated six million tonnes of Carbon Dioxide (CO₂) emissions annually, while attracting up to two billion dollars in new investments. More than 100,000 direct and indirect jobs are expected to be created, and about 170,000 metric tonnes of LPG will be produced annually, providing clean energy access to 1.4 million households. Nearly three gigawatts of power-generation potential would also be unlocked,” he said
Komolafe emphasized that the issuance of permits marks the beginning—not the end—of project execution. He urged the awardees to fast-track engineering, construction, financing, and commissioning activities, assuring them of continuous regulatory support. “The value of this programme will be realized only through disciplined project delivery,” he said, adding, “Together, we will continue to advance Nigeria’s upstream petroleum sector towards greater transparency, efficiency, sustainability, and global competitiveness.”