Nigeria flare-gas programme is facing delays, as 22 of the 42 companies awarded access to flare-gas resources are struggling to develop their assigned sites.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, disclosed the development during an update on the country’s gas sector. According to the minister, only about 20 companies have made significant progress with their projects.
This means that more than half of the companies selected under the programme are yet to achieve the expected level of development.
Nigeria Flare-Gas Programme Faces Development Delays
Some of the companies have reportedly faced technical challenges while trying to access their assigned flare sites.
Officials have also identified resistance at some locations as another obstacle.
The government has warned companies to show clear progress on their projects. If they fail to make sufficient progress, the government could review or withdraw their awards.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) carries out reviews of the companies after one year. Companies that fail to meet the required development milestones can have their permits revoked.
The government awarded 42 successful bidders access to 49 flare sites under the programme. The initiative aims to encourage oil producers to commercially use gas that would otherwise be burned.
Companies can process the gas into products such as liquefied petroleum gas, compressed natural gas and electricity. Industries can also use it as feedstock.
The programme aims to attract investment, create jobs and reduce gas flaring across the country.
Gas flaring continues to cost Nigeria
The setbacks have raised concerns as oil companies continue to flare large volumes of gas in Nigeria.
Oil and gas companies reportedly flared about 301.6 billion cubic feet of gas between January 2025 and June 2026, with the gas estimated to be worth almost $888 million.
The government has set a target to end routine gas flaring by 2030. The government expects greater use of flare gas to help achieve that goal and increase the value of Nigeria’s natural resources.
Nigeria’s proven gas reserves have also increased in recent years. However, slow project development could delay Nigeria’s efforts to turn wasted gas into useful energy and industrial products.
Companies in the programme are therefore expected to overcome the challenges and begin developing their assigned sites.
