Nigeria lost the opportunity to generate about 62,400 gigawatt-hours (GWh) of electricity from gas that was flared between 2024 and 2025, despite ongoing government efforts and financial sanctions aimed at discouraging the practice.
The latest figures represent an 18.6 per cent increase over the estimated 50,800 GWh of electricity potential lost between 2022 and 2023, highlighting the country’s continued struggle to reduce gas flaring.
The development comes at a time when many oil-producing nations are increasingly capturing associated gas for electricity generation, industrial activities and export rather than burning it off.
Statistics released by the National Oil Spill Detection and Response Agency (NOSDRA) indicate that the gas flared during the period had an estimated market value of $2.2 billion. The agency also disclosed that operators responsible for the flaring, including both International Oil Companies (IOCs) and National Oil Companies (NOCs), could face penalties amounting to $1.2 billion.
According to NOSDRA, onshore oil operations accounted for 380.6 million standard cubic feet (SCF) of flared gas, while offshore operations recorded 243.8 million SCF. The agency further estimated that the flaring released approximately 33.2 million tonnes of carbon dioxide (CO₂) into the atmosphere.
The agency expressed concern that gas flaring has remained a persistent challenge despite years of regulatory measures, noting that the practice continues to waste valuable energy resources while contributing significantly to greenhouse gas emissions.
The findings mirror those contained in the World Bank’s Global Gas Flaring Tracker Report, which listed Nigeria among the nine countries with the highest gas-flaring volumes in 2025. The list also includes Russia, Iran, Iraq, Venezuela, Mexico, Libya, Algeria and the United States.
According to the report, the nine countries were responsible for 83 per cent of global gas flaring in 2025, even though they accounted for only 46 per cent of worldwide oil production. It also revealed that global gas flaring reached 167 billion cubic metres (bcm) during the year, with Nigeria contributing about nine bcm, making it the seventh-largest gas-flaring nation globally.
Commenting on the situation, Professor Emeritus of Petroleum Economics, Wumi Iledare, argued that the persistent flaring is driven less by weak enforcement and more by the absence of an efficient commercial framework for converting gas into electricity.
He said every volume of gas burnt off represents a missed opportunity to boost power generation, support industrial development, create employment, increase export earnings and improve the country’s energy security.
Iledare attributed the problem to inadequate gas gathering facilities, an inefficient electricity market, distorted pricing mechanisms and regulatory shortcomings, which together make gas flaring the more convenient option for producers.
While acknowledging that stricter penalties remain necessary, he maintained that sanctions alone would not end the practice. He called for policies that promote gas capture and utilisation, encourage investment in infrastructure, establish market-based pricing and create a financially viable electricity market capable of guaranteeing prompt payment to gas suppliers.
