Oil companies operating in Nigeria that fail to meet the country’s zero gas flare rate are now subject to substantial fines, amounting to $25.3 million or N19.4 billion using N768.77 per US dollar exchange rate.
Recent data released by the National Oil Spill Detection and Response Agency (NOSDRA) underscores the gravity of the issue.
In July 2023, these companies flared an astounding 12.7 million standard cubic feet of gas, marking a worrisome 35 percent increase compared to the 9.4 million standard cubic feet of gas flared during the same period the previous year.
To put this in perspective, NOSDRA estimates the value of the gas flared at $44.3 million, equivalent to a staggering N34.1 billion, based on the Central Bank of Nigeria’s current official exchange rate.
Environmental Impact
Beyond the financial penalties, the volume of gas flared during this period also equated to a carbon dioxide emission of 673.1 thousand tonnes, further exacerbating Nigeria’s environmental challenges.
Moreover, this gas possessed the potential to generate a substantial 1,300 gigawatt hours of power, highlighting the untapped energy resource being wasted.
Breaking down the figures, NOSDRA’s report reveals that offshore operations were responsible for sparking 5.1 million standard cubic feet of gas, while onshore companies flared 7.6 million standard cubic feet of gas.
A Decades-Long Problem
Lamentably, despite concerted efforts to reduce gas flaring, this damaging practice has persisted in Nigeria since the 1950s. It continues to release harmful carbon dioxide and other noxious gases into the atmosphere, posing a significant threat to the environment and public health.