NUPRC Threatens Licence Revocation Over Failure To Develop Gas-Flare Projects

NUPRC Threatens Licence Revocation Over Failure To Develop GasFlare Projects The Nigerian Upstream Petroleum Regulatory Commission NUPRC has threatened to revoke the licences and awards of investors who fail to develop gas-flare projects allocated to them under Nigeria’s flare commercialisation programme.

The warning comes amid continued gas flaring across the country, despite the Federal Government collecting ₦521.87 billion in gas-flare penalties in 2025. The upstream regulator said investors awarded flare-gas sites must demonstrate meaningful progress in developing the projects or risk losing their permits. The move is aimed at accelerating the commercialisation of gas that would otherwise be burned, while reducing the environmental and economic losses associated with gas flaring. According to reports, the NUPRC is increasingly shifting its focus from imposing financial penalties on oil and gas operators to ensuring that associated gas is captured and put to productive use. Despite the substantial penalties imposed on oil and gas companies, gas flaring remains a persistent problem in Nigeria’s petroleum industry. The country reportedly continued to experience significant volumes of gas being burned in 2025, highlighting the limitations of relying solely on financial sanctions to discourage the practice. The NUPRC’s latest position therefore signals a tougher regulatory approach, with project development and actual utilisation of flare gas becoming central to compliance. Under the flare commercialisation programme, investors were awarded specific gas-flare sites for projects designed to capture and commercialise gas. The regulator’s threat to revoke awards is expected to put pressure on companies that have failed to make sufficient progress on their projects. The NUPRC is seeking to ensure that awarded projects translate into actual gas capture, improved energy supply and greater economic value rather than allowing flare sites to remain undeveloped. Gas flaring has remained a major environmental concern in Nigeria, contributing to air pollution and greenhouse-gas emissions while wasting a valuable energy resource. The Federal Government has introduced several initiatives over the years to eliminate routine gas flaring and encourage the commercialisation of associated gas. The latest warning from the NUPRC indicates that the government intends to move beyond penalties and apply stronger enforcement measures against companies that fail to meet their obligations.