From Flares To Fortune Nigeria Moves To Turn Wasted Gas Into Wealth

From flares to fortune Nigeria moves to turn wasted gas into wealth

Nigeria is intensifying efforts to transform gas flaring from an environmental problem into an economic opportunity by capturing and monetising natural gas that would otherwise be burned into the atmosphere. The renewed push follows President Bola Tinubu’s call on the Nigeria Liquefied Natural Gas NLNG to prioritise reducing gas flaring while increasing the domestic utilisation of the country’s gas resources. Speaking after receiving the NLNG board and management at the State House in Abuja, Tinubu said Nigeria must go beyond earning revenue from international gas markets and ensure that more of the country’s gas benefits consumers at home. He urged the company to convert gas that would otherwise be flared into economic value, including energy supplies that can support households and businesses. The initiative comes as Nigeria continues its efforts to end routine gas flaring by 2030. The Nigerian Upstream Petroleum Regulatory Commission NUPRC said routine flaring has fallen from more than 80 per cent about 35 years ago to roughly seven per cent today. Despite the progress, billions of cubic metres of gas are still being wasted. NUPRC data showed that about 6.08 billion cubic metres of gas were flared in Nigeria in 2025, compared with the World Bank’s estimate of 6.6 billion cubic metres. Gas production itself increased by nearly eight per cent in 2025 to 2.706 trillion standard cubic feet. However, the volume of gas flared also increased from 192.9 billion standard cubic feet in 2024 to 204 billion standard cubic feet in 2025. NUPRC says it is moving beyond simply penalising companies for flaring and is instead seeking to commercialise the gas. Flare sites are being concessioned to companies capable of converting wasted gas into usable energy, with the initiative potentially generating up to three gigawatts of electricity. The approach is expected to deliver both environmental and economic benefits by reducing greenhouse gas emissions while creating additional sources of electricity, industrial activity, investment and jobs. Nigeria is also strengthening efforts to detect and reduce methane emissions. TotalEnergies EP Nigeria and NNPC Limited have renewed cooperation on the deployment of AUSEA, a drone-based technology designed to detect and measure methane and carbon dioxide emissions. More than 2,500 sensors were installed in 2025 to enable real-time methane leak detection and quicker intervention, according to TotalEnergies. The government is simultaneously seeking to increase domestic gas availability. NLNG Managing Director and CEO Adeleye Falade told Tinubu that all of the company’s liquefied petroleum gas, commonly known as cooking gas, is currently being supplied to the domestic market. Falade also said increased oil production had allowed NLNG to raise its operating capacity from four to five trains, while the company is working towards the inauguration of Train Seven, which is expected to increase capacity by 35 per cent. The gas strategy forms part of Nigeria’s broader climate and energy transition plans. The Federal Government is combining gas utilisation and methane reduction with renewable energy, climate financing and efforts to expand electricity access. Nigeria has also set a net-zero emissions target for 2060, while the government says it is seeking increased climate finance to support the transition. For the Federal Government, the objective is therefore not simply to extinguish gas flares. It is to turn previously wasted resources into electricity, cooking fuel, industrial feedstock, investment and government revenue. The success of the strategy will ultimately depend on whether Nigeria can reduce routine flaring while ensuring that the economic value created from its gas resources translates into tangible benefits for citizens.