It is with a great pleasure and a profound sense of responsibility that I address you today at the 3rd edition of National Extractives Dialogue 2024 (NED 2024). This gathering of great minds, experts, and industry players with a shared commitment is crucial as we discuss a theme of utmost importance: “Gas Flare Reduction: Catalyst for Accelerating Nigeria’s Path to Net-Zero Emissions and Sustainable Development. It is an important gathering on our journey towards a more sustainable and responsible future and a testament to our collective commitment to environmental stewardship, innovation, and the pursuit of sustainability within the extractive industry in Nigeria and in the West Africa sub-region.
Nigeria’s commitment to achieving a ‘just transition’ to net-zero emissions has garnered significant attention on the global stage. This commitment is evidenced by the establishment of frontline advocacy initiatives following the signing of the Just Transition Declaration and the announcement of the ambitious 2060 net-zero goal in 2021, at the United Nations Climate Change Conference of Parties (COP26) held in Glasgow. Following this declaration, Nigeria launched its Energy Transition Plan (ETP) on August 24, 2022, establishing the country’s strategy to reach a net-zero emissions energy system by 2060.
At COP 28, in Dubai, UAE, President Bola Ahmed Tinubu GCFR further reinforced this commitment to end gas flaring and reduce methane emission in Nigeria when he directed the policy of reward and penalty for adherents and defaulters respectively. The president further announced the launch of the Nigerian Carbon Market Initiative as part of Nigeria’s efforts to uphold its commitment to reducing emissions. This initiative is part of the broader African Carbon Market Initiative, aimed at enhancing Nigeria’s participation in global carbon markets.
Historically, gas flaring has been a common practice in the Nigerian oil and gas industry due to the absence of infrastructure to capture and utilize the associated gas. As a result, gas has been continuously burned in oil fields, leading to the release of harmful pollutants into the atmosphere. Despite regulatory efforts, enforcing regulations has been challenging, and many operators still flare gas due to insufficient penalties and the high costs of gas capture and utilization technologies.
Nigeria’s policies on gas flaring has however evolved significantly over the years. Initially, the focus was on production maximization, with little regard for the environmental impact of gas flaring. However, recognizing the severe implications of this practice, the Nigerian government has implemented several policies aimed at reducing and ultimately eliminating gas flaring. Key among these is the Gas Re-injection Act of 1979, which mandated oil companies to submit gas utilization plans, and more recently, the Nigerian Gas Flare Commercialization Programme (NGFCP), launched in 2016, which aims to attract investments in flare gas capture projects.
As of today, Nigeria remains one of the top ten countries in the world in terms of gas flaring volumes. The Nigerian National Petroleum Corporation (NNPC) reports that approximately 324 billion cubic feet (bcf) of gas were flared in 2023, translating to significant economic losses and environmental damage. Though this volume represents a slight decrease from previous years, figures derived from the National Gas Flare Tracker shows that Nigeria has flared 148.7 million standard cubic feet of gas in the first 6 months of 2024 which is about 7% above the level for the same period in 2023.
As a testament to our commitment to innovative solutions in this area, the National Oil Spill Detection and Response Agency (NOSDRA) which is the regulatory arm of the Federal Ministry of Environment in the oil and gas sector, is playing a pivotal role in addressing gas flaring and methane emissions from the activities of the oil and gas industry players. The Nigerian Gas Flaring Tracker (NGFT), a key initiative of NOSDRA, serves as a cornerstone in the country’s environmental regulatory framework for the oil and gas industry. This unique, technologically driven environmental regulatory tool is a satellite-based platform, that not only provides near real-time monitoring and tracking of gas flaring activities but also quantifies carbon emissions thereby enhancing transparency and accountability within the oil and gas sector.
Following my directive to NOSDRA in March during the national stakeholders engagement on methane reduction and mitigation, the inaugural workshop on quarterly reporting of utilization efforts and initiatives towards the reduction of carbon footprint by the oil and gas sector in Nigeria was held on May, 23rd, 2024. The workshop due for its second edition in August is to fast track the efforts of players in the sector on gas utilization programmes and ensure early flare down of gas in our country. It underscores the commitment of the federal government to environmental sustainability by combating gas flaring and methane emissions.
I must however express my deep concern that while a few international Oil Companies (IOC) and other operators are heading the call of government for gas flare transparency and accountability most International Oil Companies (IOCs) are not responding at the scale we expected to the call by NOSDRA’s which reflects a disregard for Nigeria’s environmental sustainability agenda. Let me therefore use this platform to issue a strong warning that the federal ministry of environment acting on its mandate to secure a quality environment conducive for good health and well being of fauna and flora will no longer tolerate such disregard to legitimate call of NOSDRA. Operators in the Nigerian oil and gas sector have a responsibility to lead from the front to support the vision of Nigeria to end gas flaring not just in the interest of the country but in the overall interest of our planet.
I am happy to note that NOSDRA has developed a mechanism for fact-checking gas flared volumes, quantify CO2 emmission, computes the economic value and power generation potential thus enhancing stewardship and accountability within the sector. I commend the organisation for such initiatives like the NGFT which is crucial to Nigeria’s meeting her net-zero emission target by 2060. NOSDRA as a regulator is our police of the environment within the oil and gas sector. It is our desire to further strengthen the organisation and integrate it fully into the Hydrocarbon Regulatory Framework of the oil and gas sector so that it will be able to deliver better on its mandate.
Despite the progress being made, tackling gas flaring in Nigeria is still faced with multifaceted challenges including deficit of infrastructure for gas capture, storage and transportation, inadequate regulatory enforcement, inadequate investment, technological gaps and low community involvement. The Federal Ministry of Environment through its relevant departments and agencies is determined to work with other stakeholders through policy and regulatory strengthening, investment drive, technology transfer, private sector mobilization. capacity building, community engagement and other measures to turn the tide and put our country on a firm footing to end gas flaring as early as possible but not later than 2030.
As the world collectively works towards achieving net-zero emissions to combat climate change, it is crucial for Nigeria to take a leading role in adopting sustainable practices within the extractive sector. The government’s strong commitment to reducing greenhouse gas emissions, as detailed in our Nationally Determined Contributions (NDCs) under the Paris Agreement, serves as a testament to our unwavering dedication to this cause. Among the critical components of our strategy, we recognize the imperative nature of reducing gas flaring and its impact on environmental sustainability. Projects within our borders like the Nigerian Gas Flare Commercialization Programme (NGFCP) have demonstrated that gas flare reduction is achievable, economically viable and has shown promise by attracting investments. Moreover, the global landscape is replete with opportunities for collaboration and learning and we will be exploring insights and partnerships from other countries that have successfully tackled gas flaring.
Before I end this address, let me reiterate that ending gas flaring has a broader impact on sustainable development influenceing air quality, public health, and climate change. It is foundational to achieving many of the United Nations Sustainable Development Goals (SDGs). By tackling gas flaring, we contribute directly to goals such as affordable and clean energy (SDG 7), decent work and economic growth (SDG 8), and climate action (SDG 13). By committing to a comprehensive strategy for gas flare reduction, Nigeria will not only be meeting her environmental obligations but also unlocking significant economic and social benefits for its people. I call on all stakeholders to seize every opportunities, harness our collective resolve, and work together so that jointly we can make gas flaring a thing of the past in our country. Our future and that of many generations yet unborn depends on it.
Thank you and God bless the Federal Republic of Nigeria.
 HELD AT BON HOTEL, ABUJA, ON JULY 24TH, 2024. PROTOCOLS){kind=link}
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