Nigeria is not suffering from a shortage of natural gas but from an inability to harness the enormous volumes currently wasted through routine gas flaring, Managing Director of Excella-U Energy Limited, Engr. Oseagah Solomon, has said.
Speaking against the backdrop of rising electricity shortages, increasing cooking gas prices and mounting environmental concerns, Solomon described the continued flaring of associated gas as one of the country’s biggest economic contradictions.
“We are burning away resources that should be lighting homes, powering businesses and earning foreign exchange,” he said.
His remarks come as analysis of data from the National Oil Spill Detection and Response Agency (NOSDRA) Gas Flare Tracker indicates that Nigeria lost an estimated US$5.5 billion (about ₦8.7 trillion) worth of natural gas to routine gas flaring between 2021 and 2025.
Industry experts, however, argue that the actual economic cost extends far beyond the commodity value of the gas burned.
According to Mahmoud Ibrahim Mahmoud, a postdoctoral researcher and environmental scientist with NOSDRA, the broader national losses from methane waste—including unrealised electricity generation, liquefied petroleum gas (LPG), fertilizer and petrochemical production, export earnings, taxes, royalties and carbon market opportunities—could amount to between US$18 million and US$28 million every day.
Under favourable carbon market conditions, he estimated that Nigeria’s unrealised opportunity could exceed US$30 million daily, translating to between US$7 billion and US$12 billion annually.
Gas capable of transforming power sector
Oseagah said the gas currently wasted every year could significantly improve Nigeria’s energy security if properly captured and commercialised.
According to him, gas presently flared across the country has the capacity to generate more than 32 gigawatts of electricity, while also supporting domestic LPG supply, fertilizer production and petrochemical industries.
“Nigeria is blessed with abundant gas resources. The challenge is not availability but creating the right environment to recover and utilise them instead of allowing them to go up in flames,” he said.
Nigeria possesses more than 215 trillion cubic feet of proven natural gas reserves, making it one of Africa’s largest gas producers.
Despite this, routine gas flaring remains common across oil-producing fields.
NOSDRA’s 2025 Gas Flare Report shows operators flared about 323 billion standard cubic feet of gas during the year.
The agency estimates that the wasted gas was worth approximately US$1.1 billion (₦1.49 trillion), emitted about 17.2 million tonnes of carbon dioxide, and could have generated over 32,300 gigawatt-hours of electricity if utilised.
Similarly, figures released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) indicate that nearly 204 billion standard cubic feet of gas was flared in 2025 despite overall gas utilisation exceeding 92 per cent.
Investment barriers slowing gas recovery
While describing gas recovery as economically viable, Oseagah noted that financing challenges, inadequate infrastructure and inconsistent implementation of existing gas commercialisation programmes continue to discourage investment.
According to him, investors require clear regulatory frameworks, policy stability and stronger government support before committing capital to gas capture projects.
He stressed that greater certainty around fiscal policies and infrastructure development would encourage private investment capable of reducing gas flaring while expanding domestic energy supply.
Independent petroleum marketer, Chief Ajiboye Adebowale Moses, shared similar views, noting that every unit of methane wasted represents lost economic value.
“If captured instead of burned, methane can support electricity generation, cooking gas, fertilizer production and industrial development,” he said.
He added that wider domestic utilisation of natural gas would help lower LPG prices, improve electricity supply and stimulate industrial growth.
Experts quantify wider losses
Beyond the direct value of gas burned, Mahmoud said Nigeria loses opportunities across multiple sectors whenever methane is flared or vented.
According to him, captured gas could fuel power plants, increase household access to cooking gas, supply fertilizer and petrochemical industries, generate export revenue through liquefied natural gas (LNG), strengthen government revenues through taxes and royalties, and earn carbon credits under international climate markets.
“The true national loss is substantially larger than the commodity value shown on the Gas Flare Tracker because methane that is flared or vented could otherwise generate electricity, supply households with LPG, support fertilizer and petrochemical industries, earn export revenue and generate taxes and royalties,” he said.
Communities demand greater benefits
Oil-producing communities continue to bear the environmental consequences of decades of gas flaring.
Chairman of the Council of Chiefs of Lasukugbene Community in Bayelsa State, Chief Zion D. Kientei, said communities located close to flare sites have experienced declining crop yields, disappearing fish species and worsening health conditions.
“Our flare stack is less than 200 metres from the community. It has altered our ecosystem. The fish species we grew up seeing have disappeared. Crop yields have reduced drastically,” he said.
He urged government and operators to accelerate gas capture projects and prioritise host communities for electricity supply and economic development.
According to him, improved electricity access would stimulate small businesses, create employment and reduce youth unemployment across the Niger Delta.
Stronger enforcement needed
Environmental advocates also called for stricter enforcement of existing regulations.
Executive Director of the Renevlyn Development Initiative (RDI), Philip Jakpor, said methane emissions are frequently accompanied by hazardous pollutants that threaten public health and agricultural livelihoods.
He argued that while Nigeria has introduced regulations aimed at reducing methane emissions and gas flaring, implementation remains weak.
Jakpor advocated greater use of satellite monitoring, independent emissions tracking and transparent reporting to improve accountability.
Meanwhile, Mahmoud recommended integrating satellite observations with drones, airborne sensors and ground-based monitoring systems to improve methane detection and strengthen regulatory oversight.
He also called for expansion of digital platforms such as the Nigerian Gas Flare Tracker and the proposed Nigerian Methane Emissions Tracker.
Stakeholders agree that Nigeria possesses both the natural gas resources and the technology required to significantly reduce flaring.
However, they maintain that stronger policy implementation, investment and regulatory enforcement will determine whether the country succeeds in converting billions of dollars currently lost through gas flaring into electricity, cleaner cooking fuel, industrial development and economic growth.
