For decades, natural gas flaring has been a persistent challenge for oil-producing nations, representing both an environmental hazard and a missed economic opportunity. Globally, the World Bank estimates that over 140 billion cubic metres of gas are flared annually, releasing approximately 400 million tonnes of CO₂ into the atmosphere. While some countries have made strides to curb flaring, Nigeria has historically accounted for one of the largest shares of global gas flaring, wasting a resource that could drive electricity generation, industrial growth, and clean household energy.
This practice not only undermines environmental commitments under the Paris Agreement but also limits economic diversification in nations heavily dependent on oil revenues. Recognising this dual challenge, Nigeria has now launched a transformative approach to convert its gas flares from an environmental liability into a commercial asset, aligning national policy with global climate imperatives.
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In December 2025, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) granted permits to 28 companies under the Nigerian Gas Flare Commercialisation Programme (NGFCP). This initiative is designed to capture gas that would otherwise be flared and channel it into productive uses such as electricity generation and liquefied petroleum gas (LPG) production.
Under this programme, companies will construct processing facilities near oil fields to capture flare gas, which can then be redirected to fuel turbines, supply industrial processes, or be converted into LPG for domestic consumption. By replacing routine flaring with commercially viable operations, Nigeria not only mitigates greenhouse gas emissions but also stimulates investment and job creation in the energy sector.
The potential impact of these projects is significant. According to NUPRC, if fully operational, the NGFCP could generate approximately 3 gigawatts of electricity, enough to supply millions of homes and businesses across Nigeria. Furthermore, the programme is expected to attract private investment totalling around $2 billion, fostering economic growth and creating thousands of jobs in construction, operations, and associated industries.
The programme also addresses household energy needs. By producing roughly 170,000 metric tonnes of LPG annually, Nigeria could provide clean cooking fuel for more than a million households, reducing reliance on wood and charcoal and mitigating indoor air pollution. This dual benefit of economic empowerment and environmental improvement demonstrates the comprehensive vision underpinning the NGFCP.
Gas flaring is a major source of carbon dioxide and methane emissions, contributing to both climate change and local environmental degradation. Nigeria’s flaring activities have historically released millions of tonnes of CO₂ annually. By capturing and utilising flare gas, the NGFCP directly reduces these emissions, helping Nigeria meet its climate targets, including the goal of ending routine flaring by 2035, in line with national and international commitments.
Globally, nations are increasingly recognising the importance of converting waste gas into energy. Countries like Norway, Qatar, and the United States have implemented flare reduction programmes that not only curb emissions but also unlock economic potential. Nigeria’s initiative positions it to join this cohort of nations leveraging energy transition strategies for both climate and economic gains.
The NGFCP forms part of a broader effort to reform Nigeria’s petroleum sector, attract private investment, and expand electricity access. Beyond environmental and economic outcomes, the programme strengthens the country’s energy security, reduces pressure on power generation infrastructure, and creates a market for domestic LPG consumption.
By turning flares into usable energy, Nigeria demonstrates a model that balances environmental stewardship with economic pragmatism. This initiative also signals to global investors that the country is committed to sustainable energy practices while fostering opportunities for growth in a sector historically dominated by oil extraction.
From Flaring to Flourishing
Nigeria’s gas flaring plan is a significant step towards transforming the nation’s energy landscape. By converting wasted gas into electricity and LPG, the country addresses environmental concerns, strengthens energy access, and attracts substantial private investment. In a world where energy transition and climate responsibility increasingly define economic success, Nigeria’s approach exemplifies how national policy can simultaneously protect the planet and unlock economic potential.
With careful implementation, the NGFCP could become a blueprint for other high-flaring nations, demonstrating that even longstanding challenges like gas flaring can be converted into engines of growth and sustainability.
