Nigeria lost an estimated 3,100 gigawatt-hours (GWh) of electricity generation potential in May 2026 due to continued gas flaring by oil companies, underscoring a major challenge to the Federal Government’s ambition of building a gas-powered economy by 2030.
The development comes amid conflicting figures released by two government agencies on the volume of gas flared during the period. While the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reported that 17.6 million standard cubic feet (MMSCF) of gas were flared, the National Oil Spill Detection and Response Agency (NOSDRA) estimated the volume at 30.7 million standard cubic feet (MSCF).
According to NOSDRA, the flared gas was valued at approximately 107.5 million dollars, while the oil companies responsible, including several international operators, could face penalties amounting to 61.4 million dollars.
The agency also disclosed that gas flaring from onshore oilfields rose significantly, accounting for 22.3 MSCF, compared with 8.4 MSCF flared from offshore operations during the same period.
Beyond the economic losses, NOSDRA said the gas flaring released an estimated 1.6 million tonnes of carbon dioxide into the atmosphere, worsening environmental pollution and contributing to climate change.
The agency noted that despite decades of efforts to end the practice, gas flaring has continued in Nigeria since the 1950s, releasing harmful greenhouse gases and undermining environmental sustainability.
The Federal Government has repeatedly reaffirmed its commitment to the “Decade of Gas” initiative, launched in 2021 to transform Nigeria into a gas-powered economy by 2030 through increased electricity generation, industrial gas utilisation and expanded gas exports.
Government policy identifies improved gas utilisation for power generation and greater investment across the gas value chain as key strategies for achieving these objectives.
However, industry data indicate that despite increased investment in the sector, gas flaring remains widespread, suggesting that funding has yet to translate into significant improvements in gas capture and utilisation.
The continued flaring of gas has also been linked to Nigeria’s persistent electricity shortages, as inadequate gas supply continues to limit the capacity of electricity generation companies (GenCos) to consistently produce more than 4,000 megawatts of electricity for homes and businesses.
Meanwhile, the Renevlyn Development Initiative (RDI) has called on the Federal Government to impose a total ban on gas flaring, arguing that existing penalties are insufficient to discourage the practice, as many oil companies continue to pay fines instead of investing in technologies that would eliminate routine gas flaring.
