Nigeria lost an estimated 62,400 gigawatt-hours (GWh) of potential electricity generation between 2024 and 2025 as gas flaring rose by 18.6 per cent, despite the Federal Government’s efforts to curb the practice through stricter penalties and regulatory measures.
The losses come at a time when many oil-producing countries are increasingly capturing and commercialising associated gas for electricity generation, industrial use and exports instead of flaring it.
Data obtained from the National Oil Spill Detection and Response Agency (NOSDRA) showed that gas flared during the period was valued at $2.2 billion, while defaulting operators, including International Oil Companies (IOCs) and National Oil Companies (NOCs), are liable to penalties totalling $1.2 billion.
According to NOSDRA, operators flared 380.6 million standard cubic feet (SCF) of gas from onshore facilities and 243.8 million SCF offshore, releasing an estimated 33.2 million tonnes of carbon dioxide (CO₂) into the atmosphere.
The agency expressed concern that gas flaring has persisted despite decades of government interventions, resulting in the loss of valuable energy resources and contributing significantly to greenhouse gas emissions.
The findings are consistent with the World Bank’s Global Gas Flaring Tracker Report, which ranked Nigeria among the world’s top nine gas-flaring countries in 2025, alongside Russia, Iran, Iraq, Venezuela, Mexico, Libya, Algeria and the United States.
According to the report, the nine countries accounted for 83 per cent of global gas flaring in 2025 despite producing only 46 per cent of the world’s crude oil. It added that global gas flaring rose to 167 billion cubic metres (bcm) in 2025, while Nigeria flared about nine bcm, making it the world’s seventh-largest gas-flaring nation.
Reacting to the report, Professor Emeritus of Petroleum Economics, Wumi Iledare, said the continued flaring reflects deep-rooted structural challenges in Nigeria’s energy sector rather than weak enforcement alone.
“Gas flaring in Nigeria is not merely an environmental issue; it reflects a failure of power market economics, gas commercialisation and sector governance. Every molecule of gas flared represents lost opportunities to generate electricity, support industries, create jobs, earn export revenues and strengthen energy security,” he said.
Iledare attributed the problem to inadequate gas-gathering infrastructure, an illiquid electricity market, pricing distortions and regulatory inefficiencies, which continue to make gas flaring the easier option for operators.
While backing tougher sanctions, he stressed that higher flare penalties alone would not end the practice.
“They must be complemented by policies that encourage gas capture, infrastructure investment, market-based pricing and a financially sustainable electricity market where gas producers are assured of timely payment,” he added.
