BY OJO SAMSON AYOMIDE
The National Oil Spill Detection and Remediation Agency (NOSDRA) has revealed that Nigeria lost approximately $78.2 million (about N118.864 billion) to gas flaring from offshore oil and gas operations in January and February 2025.
During this period, according to the agency, oil companies flared 22.3 billion standard cubic feet (BSCF) of gas, representing 31.48 percent of the total gas flared nationwide.
Using the Central Bank of Nigeria’s exchange rate of N1,520 to a dollar, NOSDRA’s report highlighted that the flaring contributed to the emission of 1.2 million tonnes of carbon dioxide and had the potential to generate 2,200 Gigawatt hours (GWh) of electricity.
The companies involved in the gas flaring were liable for penalties amounting to $44.7 million (N67.944 billion).
In comparison, during the same period in 2024, offshore companies flared a larger volume of 29.2 BSCF, resulting in a $102.3 million (N155.496 billion) loss and $58.4 million (N88.768 billion) in penalties.
The carbon dioxide emissions from this activity amounted to 1.6 million tonnes, and the potential electricity generation stood at 2,900 GWh.
Overall, NOSDRA reported that Nigeria’s total loss to gas flaring in the first two months of 2025 amounted to $248.4 million (N377.568 billion), with 71.0 BSCF of gas flared nationwide.
This contributed to 3.8 million tonnes of carbon dioxide emissions and had the potential to generate 7,100 GWh of electricity. The penalties for all companies involved reached $141.9 million (N215.688 billion).
NOSDRA identified the specific Oil Mining Leases (OMLs) and Oil Prospecting Licenses (OPLs) from which the flared gas originated, which included OMLs 04, 05, 11, 13, and several others, as well as OPLs 222, 316, and 306.
Among the companies that were found to be in violation were Shell Petroleum Development Company (SPDC), Nigerian Petroleum Development Company (NPDC), Chevron Nigeria, Mobil Oil, and several other major players in the industry.
The agency’s report underscores the continued environmental and economic challenges posed by gas flaring in Nigeria, calling attention to the significant penalties and environmental impacts associated with these practices.
