Nigeria’s ambition to become a gas-powered economy by 2030 has suffered another setback, with the country losing an estimated 3,100 gigawatt-hours (GWh) of electricity generation potential to persistent gas flaring by oil companies in May 2026.
The latest figures highlight the continued challenge of curbing gas flaring despite the Federal Government’s ongoing “Decade of Gas” initiative, launched in 2021 to boost power generation, industrial growth, and gas exports.
Data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the National Oil Spill Detection and Response Agency (NOSDRA) revealed conflicting estimates of gas flared during the month. While the NUPRC reported 17.6 million standard cubic feet (MMSCF) of gas flared, NOSDRA recorded a significantly higher figure of 30.7 million standard cubic feet (MSCF).
According to NOSDRA, the gas flared in May was valued at $107.5 million, with defaulting oil companies—including several international oil firms—liable to penalties totaling $61.4 million.
The agency disclosed that gas flaring from onshore operations rose by 62.3 percent, reaching 22.3 MSCF, while offshore operations accounted for 8.4 MSCF during the period.
Beyond the economic losses, NOSDRA said the flared gas released an estimated 1.6 million tonnes of carbon dioxide into the atmosphere, worsening environmental pollution and climate concerns.
The agency noted that gas flaring has persisted in Nigeria since the 1950s despite repeated government efforts to eliminate the practice.
A government report obtained by Vanguard reaffirmed that increasing gas utilisation for electricity generation and attracting investments across the gas value chain remain key priorities under the Federal Government’s energy strategy.
However, industry findings indicate that despite increased investment in the gas sector, gas flaring remains stubbornly high, raising concerns that investment has not translated into improved gas production, utilisation, or reliable electricity supply.
Nigeria has continued to struggle to generate more than 4,000 megawatts (MW) of electricity consistently, with inadequate gas supply to Electricity Generation Companies (GenCos) identified as one of the major constraints.
Meanwhile, the Renevlyn Development Initiative (RDI) has called on the Federal Government to impose a total ban on gas flaring, arguing that existing penalties have failed to deter oil companies.
The group cited data from the Nigerian Oil Spill Monitor, which showed that oil companies paid an estimated $646 million in gas flaring penalties in 2025—the highest amount recorded in the past five years—suggesting that many operators consider paying fines more convenient than ending the environmentally harmful practice.
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