A report obtained on Monday revealed that the Federal Government of Nigeria incurred an estimated loss of $16 trillion due to natural gas flaring over the past decade, spanning from 2012 to 2022, according to the Energy Institute’s 72nd edition of the ‘Statistical Review of World Energy 2023.’

The data breakdown indicated that upstream and downstream oil and gas firms in the country were responsible for flaring significant amounts of gas during this period.

In 2012, approximately 12.9 billion cubic meters of natural gas were flared, followed by 9.2 billion cubic meters in 2013, 8.3 billion in 2014, and 7.5 billion in 2015.

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The trend continued with fluctuations, reaching a low of 5.3 billion cubic meters in 2022. The cumulative gas flared over the decade amounted to an estimated 86.5 billion cubic meters.

Using a valuation of $183 million for each billion cubic meters of natural gas, the report indicated a staggering $16 trillion loss due to gas flaring within the specified period.

In 2020, former President Muhammadu Buhari committed to supporting the United Nations’ 2050 zero gas emission agenda, with a national commitment to cease gas emissions by 2060.

In alignment with this goal, the Nigerian Upstream Petroleum Regulatory Commission announced in October that 42 firms were granted gas flaring licenses as part of the 2022 Nigerian Gas Flare Commercialisation Programme.

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Despite efforts to address gas flaring, a penalty system was enforced, with the National Oil Spill Detection and Response Agency (NOSDRA) imposing fines totaling $25.3 million in July 2022, equivalent to N19.4 billion based on the official exchange rate of N768.77/$ as per the Central Bank of Nigeria.

Engr. Gbenga Komolafe, Chief Executive of the Nigerian Upstream Regulatory Petroleum Commission, emphasized the adverse environmental and economic impact of wasteful gas disposal.

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He stated that the Nigerian Gas Flare Commercialisation Programme aims to attract investments, establish a transparent market mechanism, and allocate gas flares to competent third-party investors using proven technologies on a global scale.