Market News
Nigeria risks losing N3.43tr to gas flaring – NEITI
By Faruk Shuaibu
The Nigeria Extractive Industries Transparency Initiative (NEITI) has expressed concern over the volume of gas flared in 2023, amounting to 183.408 billion standard cubic feet (SCF).
The Executive Secretary of NEITI, Dr Orji Ogbonnaya Orji, stated this at a high-level policy dialogue in Abuja. He also said the lost gas had an estimated economic value of $458.52 million or N685.95 billion.
Orji emphasised that such losses, if sustained, could amount to over $2.29 billion or N3.43 trillion in five years, and were funds that could support education, health, infrastructure and climate resilience for host communities.
He also called for a clear policy declaration that must institutionalise a methane governance regime that is robust, enforceable, transparent and aligned with international best practices as the era of business-as-usual in methane emissions management is over.
The executive secretary explained that methane is over 80 times more potent than carbon dioxide in its impact on global warming, saying, “Nigeria cannot claim seriousness on climate commitments if we ignore the silent crisis of methane pollution across our extractive industries.
“Nigeria’s climate commitments will remain hollow without concrete action on methane reduction. Methane action is climate action, economic action, and social justice,” Orji reiterated.
As part of its intervention, NEITI announced the adoption of a new Energy Transition and Climate Accountability Framework, which seeks: mandatory tracking of greenhouse gas (GHG) emissions and climate risks, Independent oversight of oil company divestments, monitoring of Host Community Development Trusts under the Petroleum Industry Act (PIA), and Alignment of NEITI audit cycles with Nigeria’s Nationally Determined Contributions (NDCs).
He revealed that NEITI has already integrated methane and greenhouse gas disclosures into its 2022 and 2023 oil and gas industry reports, with 15 companies reporting emissions data.
On his part, the Chairman, House Committee on Gas Resources, Hon. Mutu Nicholas Ebomo, affirmed that the committee is fully aware of the delicate balance between maximising the economic potential of the gas sector and “ensuring that we do so in a manner that is environmentally responsible and sustainable.”
“We are committed to working with all stakeholders, government agencies, civil society, development partners, and the private sector, to establish a coherent and enforceable framework that promotes transparency, data integrity and accountability across the gas value chain.”
The Senior Country Officer of the Natural Resource Governance Institute (NRGI), Ms. Tengi George Ikoli, in her goodwill message, commended Nigeria for its strong commitment both nationally and internationally.
