Nigeria has approved 28 companies to capture and commercialise natural gas currently being flared across the oil-producing Niger Delta, marking a major step in the country’s push to cut emissions, raise revenue and unlock long-neglected energy opportunities.
The permits were issued under the Nigerian Gas Flare Commercialization Program (NGFCP), an initiative designed to end routine gas flaring by converting wasted gas into marketable products such as power, LPG, compressed natural gas (CNG), and petrochemicals.
Speaking in Abuja on Friday, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, said 42 companies had bid for the rights to harvest gas from 49 flare sites. Of these, 28 met the requirements and have been granted permits, while the remaining 14 are still undergoing compliance checks.
According to Komolafe, the approved projects are expected to capture between 250 million and 300 million standard cubic feet (scf) of gas per day, a volume that would otherwise continue to be burned off in open air — contributing to greenhouse gases, energy loss and environmental degradation.
$2bn Investment Potential, 100,000 Jobs
Komolafe said the programme is poised to attract up to $2 billion in new investments, adding that the commercialisation of flare gas will generate over 100,000 direct and indirect jobs, especially for host communities in the Niger Delta.
The NUPRC estimates that eliminating flaring at the approved sites will remove six million tonnes of carbon dioxide emissions annually — a significant contribution to Nigeria’s pledge to achieve net-zero emissions by 2060.
In addition, the captured gas could support nearly 3 gigawatts of potential electricity generation, giving Nigeria a much-needed boost at a time of chronic power shortages and rising demand from homes, industries and emerging gas-powered transport systems.
Nigeria Flaring 7.6% of Its Gas Output
Africa’s largest oil producer also holds one of the continent’s biggest natural gas reserves — much larger than its recoverable crude oil deposits. Yet, due to decades of poor infrastructure, commercial bottlenecks and weak regulatory enforcement, gas is routinely flared during crude oil extraction.
Data from the NUPRC shows that Nigeria produced 221 billion standard cubic feet of gas in October, with 7.6% of that volume flared — representing billions of naira in lost value each month.
A Shift Toward Monetising Gas
The Federal Government hopes the NGFCP, alongside recent reforms under the Petroleum Industry Act (PIA), will reposition gas as Nigeria’s transition fuel and a major economic pillar. The push comes as global energy majors divest from onshore oil while investing more in gas and cleaner energy technologies.
“The era of burning wealth into the sky is coming to an end,” Komolafe said, noting that the initiative aligns with both global climate commitments and the administration’s economic diversification agenda.
Joshua Chinonye ✔
Godwin Okafor is the Publisher & CEO of Naija247news Media Group LLC, an independent investigative news platform delivering accurate, data-driven reporting on Nigerian and global politics, economy, finance, and business. Founded in October 2010, Naija247news specializes in developmental journalism, providing timely insights and analysis to readers across Nigeria and the diaspora.
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