Nigeria lost n522bn in 2019 as oil firms flare 475bn scf of gas

A very important and timely topic!

According to a report by the Nigeria Extractive Industries Transparency Initiative (NEITI), Nigeria lost a staggering N522 billion (approximately $1.4 billion USD) in 2019 due to gas flaring by oil firms. Gas flaring is the practice of burning off natural gas that is associated with oil production, rather than capturing and utilizing it.

The report states that a total of 475 billion standard cubic feet (scf) of gas was flared by oil firms in Nigeria in 2019, resulting in the significant financial loss. This is a significant increase from the 2018 figure of 344 billion scf.

Gas flaring is not only a financial loss for the country, but it also has negative environmental and health impacts. The practice releases large amounts of greenhouse gases, including methane and carbon dioxide, which contribute to climate change. It also releases pollutants such as particulate matter, nitrogen oxides, and sulfur dioxide, which can cause respiratory problems and other health issues.

The NEITI report highlights the need for the Nigerian government and oil firms to take immediate action to reduce gas flaring and capture the associated gas for utilization. This can be achieved through the implementation of policies and regulations that promote gas utilization, as well as investments in infrastructure and technology to support gas processing and utilization.

It is essential that Nigeria takes concrete steps to address this issue, not only to reduce financial losses but also to protect the environment and public health.