Nigeria has approved permits for 28 companies to purchase natural gas currently being flared at oil fields, marking a significant shift from environmental liability to economic opportunity in the country’s upstream petroleum sector.
The permits, issued under the Nigerian Gas Flare Commercialisation Programme (NGFCP), are expected to reduce carbon dioxide emissions by about six million tonnes annually, attract up to $2 billion in investments, and create more than 100,000 jobs.
In total, 42 companies applied to capture gas from 49 flare sites across the Niger Delta. Fourteen bidders failed to meet the requirements and were not approved.
“A total of 49 flare sites have been auctioned. Forty-two (42) bidders have been awarded the sites. Between 250 and 300 million standard cubic feet per day (mmscfd) of currently flared gas will be captured and commercialised, eliminating approximately six million tonnes of carbon dioxide (CO₂) annually,” Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe, revealed on Friday, December 12, 2025.
Nigeria’s gas losses are well documented. The country holds larger gas reserves than oil, yet continues to flare a significant share due to inadequate or unreliable gas gathering and transportation infrastructure.
In October, Nigeria produced approximately 221 billion standard cubic feet of gas, of which about 7.6% was flared, according to regulatory data.
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