Introduction
Nigeria is faced with several dilemmas, many of which have linger for years without a proper policy response. Despite being the country with the largest proven gas reserve in the continent, Nigeria continues to experience policy laxity, which has in many ways affected people's lives, health, and in many ways deepened the country's economic woes.
The country's Niger Delta region (comprising mostly states from South/South and South/East Nigeria) has experienced perennial conflict, which many have argued has overlapping ethnic, economic, and environmental causes as well as constant concerns about the activities of oil companies that operate in the region. One problem that has taken on several dimensions over the years is the ongoing practice of gas flaring in the country, with most of it taking place in its Niger Delta region. This is because Nigeria accounts for the most amount of gas flaring in Sub-Sahara Africa (SSA), even though it is a practice that is ubiquitous across many oil-producing countries in the region.
World Bank's Global Gas Flaring Report for 2024 indicated an uptick in the global gas flaring at upstream oil and gas facilities by 2 percent. However, Nigeria was among the three countries with the most increase in flaring intensity in 2024. The country experienced a 12 percent increase in the flaring volume in 2024, making it the country with the second most flaring intensity in the world, a sharp contrast to some other major oil-producing countries such as Angola, Egypt, Indonesia, and Kazakhstan who reduced their flaring intensity during the same period.
Several authors have written articles and think pieces, while some have gone on to do analysis of the impact of gas flares on the health of citizens; the problem still abounds. The persistence of gas flaring has raised questions about the effectiveness of the extant laws and the role of law makers in the elimination/reduction of the hazardous act.
Causes of Nigeria's Gas Flaring Dilemma
Gas flaring in the country has remained controversial not only due to its emission of toxic pollutants such as sulphur dioxide into the atmosphere but largely due to the continuing practice by oil companies in Nigeria, mainly for economic reasons. A report by American Association for the Advancement of Science (AAAS) explained that the practice has continued for many year due to the costly nature of several alternative disposal methods that do not focus on the immediate elimination of the gas.
Flaring surge recorded in recent years could also be attributed to the economic pressure that arose around 2012 when the international gas prices dropped while oil prices increased in the global market. This led to more oil extraction from oil companies but at the same time created a loophole in the management of natural gas by-products as there was no financial incentive to push gas into the international market.
Consequences of the Gas Flaring Dilemma
Nigeria's gas flaring crisis is hugely impacting local communities, their health, and the domestic economy, thus creating tensions and associated regional conflict. Long-term flaring has led to adverse health outcomes such as community-wide rates of children cough and respiratory illness; disruption of social life and weakening of the Niger Delta's economic viability and regional growth.
Prevalence of air pollution, which was largely a result of the gas flaring activities, has led to respiratory health issues across different communities in the Niger Delta region. These respiratory challenges linked to gas flaring are prevalent among lower-class people, while prolonged exposure to toxic gases released during flaring can even lead to more severe health challenges over time.
Environmental sustainability challenge
The data obtained from the Nigeria Gas Flare Tracker, a satellite-based technology which was created by the country's Oil Spill Detection and Response Agency (NOSDRA), between January 2024 and August 2025 showed that the gas flared during that period resulted to CO2 emissions of 14.0 million tonnes. This represents a huge emission of carbon dioxide, greenhouse gases, and black carbon, with all unnatural weather changes and thermal pollution across the region.
Beyond the threat it poses to the environment, one of the consequences of intense gas flaring is the reduction in productivity. Across communities in Nigeria, gas flaring reduces productivity by 61 per cent, as farmers dedicate less time to agriculture while shifting their focus to other activities. There is also a loss of biodiversity in the region due to the contamination and degrading of mangrove forests and water bodies, as well as the acidification of the soil and rain. Thus, creating a hostile environment for flora and fauna.
Loss of Energy
The recovery of flare gas and its utilization is one of the most economic solutions for gas flaring. However, with the bill on gas flaring prohibition still in the limbo, there is so much doubt whether Nigeria, a country faced with an unprecedented energy crisis, could harness this option.
According to the data available on the Nigeria Gas Flare Tracker, between January 2024 and August 2025, the country has flared about 264.4 billion standard cubic feet of gas which is equivalent to 23,500 thousand megawatts of electricity. This is similar to situations in the past where flared gas in the country has an estimated value of the country's electricity capacity.
The loss of energy has been decried by experts and seen as a negative for the country as the over 23,500 megawatt of electricity forgone could cover for more than 35 percent of the minimum electricity required to achieve some level of stability in the country's power supply.
Policy Response and Future Outlook
Short Term Mitigation and its Limitations
There have been attempts to mitigate gas flaring activities over the years, albeit ineffective. From the Associated Gas Re-injection Act (AGRA) of 1979 to most recently, the Petroleum Industry Act, which was passed into law in 2021, the efficacy of these regulations has been a subject of debate. AGRA Regulations gave the Minister of Petroleum power to grant permits for flaring of gas and also prescribed incredibly low fines for companies; as such, it woefully failed to address gas flaring and utilization or re-injection of gas.
The PIA despite the rigorous legislative process it was subjected to did not explicitly call for the proscription of gas flaring but instead require oil companies to submit a 'natural gas flare elimination and monetization' plan' within 12 months of beginning operation. This means oil production companies are still allowed to flare gas under certain circumstances, thus making the law another in the series of half-hearted attempts to stop gas flaring in Nigeria.
Similarly, the Flare Gas (Prevention of Waste and Pollution) Regulations, 2018 which was approved by the country's Ministry of Petroleum Resources provided guidelines that curb the improper and illegal flaring of gas, however, its implementation is still limited. The discretionary power of the Minister to grant permits to oil companies that flare gas as present in AGRA was retained in the 2018 Flare Gas Regulations. Expert argued that such powers are capable of being corrupted and exploited by oil companies as experienced in the previous years, thus limiting the impact of the regulation in combating the endemic flaring dilemma the country finds itself.
Nigeria Gas Flare Commercialization Programme: Undermined by Ineffectiveness
The potentiality of a comprehensive gas flare commercialization scheme cannot be understated. it is economically and environmentally viable and has the potential to transform wasteful pollution, however, successful commercialization hinges on the effectiveness of policy.
The Nigeria Gas Flare Commercialization Programme (NGFCP) is a solid approach devised by the country's Federal Government to acquire gas flare directly from the flare site and auction it to third parties for utilization. Aligned with the government plan to achieve net zero emissions by 2060 and zero routine gas flaring by 2035, the programme was seen by many as an answer to the country's gas flare dilemma.
However, this programme has been constantly undermined by ineffectiveness. In 2016 after the NGFCP was endorsed by the Federal Executive Council, the Flare Gas (Prevention of Waste and Pollution) Regulations of 2018 was passed into to law and serve as the solid ground for the subsequent implementation of the NGFCP. At the height of the COVID-19 in 2020, the programme was stalled. The lack of recourse to an appeal body for bidders whose applications were unsuccessful has been seen as a way of discouraging further participation in the process, which is shrouded.
Over the year, the lack of transparency in granting Permit to access disposed (i.e flare) gas has raised concerns among many. under the NGFCP, there is public disclosure of the evaluation criteria of the scoring methodology used to determine suitable applicants. Furthermore, the ineffectiveness of flaring penalties, which has emerged as a major concern at different points in the history of the country, was also evident here. With many companies choosing to pay the fine rather than option for investment in the gas commercialization infrastructure, the success of NGFCP was further undermined.
Path Forward: A Robust Legislative Instrument
A comprehensive approach that includes attractive incentive that will deter oil companies and prioritize investment in gas re-inject or utilization facilities need to be adopted. Globally, there are empirical evidence of natural gas consumption and economic growth nexus particularly the electricity it generates. therefore, Nigeria must as a matter of urgency embrace a contemporary policy regime around the practices of oil and gas production as well as the ratification of the Kyoto protocol.
While changes to the current government policies and legislation around flaring is important, to be effective, such changes should focus on prohibition and punishment as well as utilization of associated gas, a key approach to reducing gas flaring for the country to meet its greenhouse gas mitigation targets.
Over the years, functional administration and strategic reduction in the amount of gas flared in Nigeria have been significantly hindered by the government's ineffectiveness. Although the Associated Gas Re-injection Act (AGRA) of 1979 outlawed gas flaring without the written permission of the minister in charge of oil and gas after January 1, 1984, this proved insufficient due to the paltry sum set as fine for oil companies. Now repealed, the fine in the AGRA in 1984 which was a meagre sum of US$0.0003(0.3) cent per million cubic feet increased to US$0.07 and by January 2008, it had only rise to US$3.50 for every 1,000 standard cubic feet of gas flared. This showed government hostility to the demand of residents of oil producing regions in Nigeria who are constantly battling health issues, pollution, and a constant economic blackout.
This dilemma represents a more serious problem with the government particularly due to its inability to legislate on this issue by accelerating bill that sufficiently criminalize and raise the level of the punishment and fines to be commensurate with the commercial value of the gas that is flared regularly by oil companies. A report by the country's Extrative Industries Transparency Initiative in 2024 noted that Nigeria has lost over $1.4 billion to unpaid gas royalties and gas flaring penalities, indicating the country flaed more gas than it used during the period of the evaluation.
Nigeria is one of the endorsers of the World Bank's Zero Routine Flaring by 2030 initiative, which brought together government, oil companies, and other partners who are committed to cooperative action that will eliminate routine flaring no later than 2030. Through its endorsement, the country also committed to providing a legal, regulatory, and conducive environment that supports the flare elimination no later than 2030. However, its persistence has raised doubt about the regulatory compliance of the Petroleum Industry Act (2021), which compels companies to report gas flares monthly or face sanction or termination of their permit.
For Nigeria's gas flaring dilemma, the country must expedite the passage of its Prohibition and Punishment Act by focusing on increasing the fine from flaring itself. The huge disparity in the fine and the commercial benefit enjoyed by oil companies has encouraged the continuous gas flaring, which is further emboldened by the government's docile approach to the deadly crisis. Furthermore, the political complexities of the gas flaring dilemma are highlighted by poor policy implementation and the influence of oil companies, which makes enforcement more difficult.
Overall, the Anti-Gas Flaring bill, which is currently under consideration at the National Assembly, is a crucial legal tool that has potential to address many of the devastating impact of gas flaring practice in Nigeria. With provisions for strict penalties, which has been the call of many over the years, the legislation could usher in a new era for Africa's most populous nation if enforced effectively. Thus, a proper legal and regulatory framework different from previous ones could serve as a deliberate strategy to catalyze gas flare commercialization while also ensuring environmental and health needs of the host communities.