Nigeria flare-gas programme faces setbacks as 22 of 42 companies struggle to develop assigned sites, threatening efforts to reduce gas flaring.
The disclosure was made by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, during an update on developments in Nigeria’s gas sector. According to the minister, about 20 of the companies have made significant progress, while the remaining 22 are yet to reach the required level of development.
The figures show that more than half of the companies selected under the programme are currently facing difficulties in moving their projects forward. The government has therefore increased pressure on the awardees to demonstrate tangible progress and ensure that the flare sites assigned to them are developed.
Nigeria Flare-Gas Programme Faces Development Challenges
The Nigerian Gas Flare Commercialisation Programme was established to encourage investors to capture gas that would otherwise be burned at oil production facilities and put it to productive use. The programme is managed by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which describes it as an initiative aimed at eliminating routine gas flaring while creating economic value from waste gas.
Under the programme, the government awarded 49 flare sites to 42 successful bidders following a competitive process. The NUPRC said 38 companies received 40 sites for standalone development, while four companies received nine sites to be developed as clusters.
The government expects the investors to deploy technologies that can capture and process the gas instead of allowing it to be burned. The recovered gas can then be converted into products such as liquefied petroleum gas, compressed natural gas and electricity, while industries can also use it as feedstock.
However, the implementation has faced obstacles in some locations. Ekpo said some investors had encountered resistance when attempting to gain access to flare sites, adding another challenge to the technical and financial requirements involved in developing the projects.
The government has also made it clear that companies cannot hold on to their awards indefinitely without demonstrating progress. In September, the NUPRC warned that companies could lose their flare-gas awards if they failed to utilise the sites. The commission said it conducts an assessment one year after an award is granted and can take regulatory action, including revocation, where sufficient progress has not been recorded.
Gas Flaring Continues Despite Commercialisation Efforts
The slow development of some projects comes as Nigeria continues to lose large quantities of gas through routine flaring. According to figures cited by Ekpo, Nigeria flared about 301.6 billion cubic feet of gas between January 2025 and June 2026, with the gas estimated to have a market value of almost $888 million.
The figures highlight the economic importance of accelerating the Nigeria flare-gas programme, particularly as the government seeks to increase domestic gas supply and expand the role of gas in power generation and industrial development.
The government has said it wants to end routine gas flaring by 2030, meaning delays in developing flare sites could make the target more difficult to achieve. The NUPRC has also described the commercialisation programme as an important part of efforts to eliminate routine flaring and create value from gas resources.
Beyond reducing environmental pollution, the successful implementation of the programme could create new investment opportunities and support job creation through gas-processing and energy projects. The NUPRC previously estimated that the programme could attract up to $2 billion in investment, create more than 100,000 direct and indirect jobs, and support the production of LPG and additional power.
The Federal Government is therefore expected to maintain pressure on companies that have received flare-site awards while addressing the access and operational challenges affecting their projects.
For the Nigeria flare-gas programme to deliver its intended economic and environmental benefits, companies will need to move beyond the award stage and begin actual development of their assigned sites. Faster project execution would allow more flare gas to be captured, processed and supplied to industries and consumers instead of being wasted through continuous burning.
The government’s ability to enforce performance requirements, resolve disputes around access and support investment will therefore remain important as Nigeria works towards reducing routine gas flaring and gaining greater economic value from its natural gas resources.
