Nigeria has moved closer to curbing decades of routine gas flaring with the approval of permits for 28 companies under the Nigerian Gas Flare Commercialisation Programme, a decision expected to draw up to $2 billion in fresh investment into the gas sector.
The permits, issued by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), give the firms legal access to gas that has historically been burned off at oilfields, wasting revenue and worsening environmental damage. The development signals a shift from policy intent to actual execution in Nigeria’s long-running battle with gas flaring.
At the permit issuance ceremony, the Commission Chief Executive, NUPRC, Engr Gbenga Komolafe, described the moment as a “strategic inflexion point” for the upstream petroleum industry.
According to him, the programme represents a break from years of operational bottlenecks and missed opportunities, replacing them with a commercial framework designed to turn flare gas into usable energy while tightening environmental standards.
“When the NGFCP was relaunched in September 2022, the objective was straightforward: transform flare gas, an environmental and economic liability for decades into a commercial asset capable of powering industries, generating jobs, improving ESG compliance and reducing Nigeria’s carbon footprint,” Komolafe said.
Nigeria remains one of the world’s largest gas-flaring nations, despite repeated pledges to end the practice. Industry data show that hundreds of millions of standard cubic feet of gas are still flared daily, even as local industries struggle with energy shortages.
Under the current phase of the programme, between 250 and 300 million standard cubic feet of gas per day is targeted for capture and commercial use. Komolafe said this could cut carbon emissions by about six million tonnes annually, a significant figure in a country under pressure to balance oil production with climate commitments.
The initiative also ties into the Federal Government’s Energy Transition Plan, which aims to reduce emissions while maintaining energy security and economic stability.
The road to the permits has been long and competitive. Out of 300 Expressions of Interest submitted by investors, only 139 firms qualified for the Request for Proposal stage. After technical and commercial evaluations, 42 bidders emerged, securing 49 flare sites across the country.
However, only 28 companies have so far completed all commercial requirements, including milestone development agreements and gas sales contracts, clearing the final hurdle for permit issuance.
Komolafe said the firms demonstrated the financial strength and technical capacity needed to operate in a challenging segment of the gas market, adding that their performance during what he called a “demanding and rigorous competitive process” showed seriousness of intent.
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