Nigeria has issued permits to 28 companies under the Nigerian Gas Flare Commercialisation Programme (NGFCP), a major initiative aimed at ending routine gas flaring, cutting carbon emissions, and using some of the gas for power generation.
Gas flaring, the controlled burning of natural gas released during oil extraction, could be reduced by 250 to 300 million standard cubic feet per day, cutting about 6 million tonnes of CO₂ annually and unlocking nearly 3 gigawatts of power potential, an NGFCP document showed, as seen on Reuters.
The programme is expected to attract up to $2 billion in investment, create over 100,000 jobs, and produce 170,000 metric tonnes of LPG annually, providing clean cooking for 1.4 million households.
The permits follow a competitive bid round that awarded 49 flare sites to 42 bidders after the programme was restructured post-COVID-19 and under the Petroleum Industry Act.
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Gbenga Komolafe, head of the Nigerian Upstream Petroleum Regulatory Commission, presented certificates to the companies. “The NGFCP is a pillar in our quest to eliminate routine flaring, reduce emissions, and enhance Nigeria’s global credibility in energy transition commitments,” an NGFCP official said.
The 28 companies have signed agreements including Connection, Milestone Development, and Gas Sales Agreements to access flare gas. Producers will benefit from reduced liabilities, improved ESG performance, and alignment with Nigeria’s decarbonisation agenda.
Development partners such as Power Africa, KPMG, the World Bank’s Global Gas Flaring Reduction initiative, and USAID have supported the programme with technical and commercial frameworks.
“The real work starts now,” the official added. “This programme will create economic, industrial and environmental value while strengthening Nigeria’s energy transition.”
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Image Credit: Reuters
