Nigeria approves 28 firms to capture flared gas, targets $2bn investment

Nigeria has approved 28 companies to capture and commercialize gas that is currently being flared in oilfields, as the country intensifies efforts to cut emissions and generate revenue from wasted resources.

According to the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, the approvals followed 42 bids submitted for access to gas-flare sites across the Niger Delta.

Fourteen bidders are still working to meet permit requirements.

Komolafe, speaking at an event in Abuja on Friday, said the initiative will enable the recovery and commercialization of between 250 million and 300 million standard cubic feet of gas currently burned off daily.

The effort, he noted, aligns with Nigeria’s commitment to achieving net-zero emissions by 2060.

The NUPRC projects that the programme will attract up to $2 billion in new investments and create more than 100,000 direct and indirect jobs.

It is also expected to eliminate around six million tonnes of carbon dioxide annually and support nearly three gigawatts of potential power generation capacity.

Despite being Africa’s largest crude producer with significant natural gas reserves, Nigeria continues to flare gas due to longstanding challenges around commercial viability.

The government aims to reverse this trend through incentives under the Nigerian Gas Flare Commercialization Programme.

Data from the NUPRC website indicates that Nigeria produced about 221 billion standard cubic feet of gas in October, with roughly 7.6% of that volume flared.