Nigeria lost an estimated $1.1 billion (about N1.493 trillion) to gas flaring in 2025, as oil and gas companies operating in the country burnt 323 billion Standard Cubic Feet (SCF) of gas between January and December, according to the latest data released by the National Oil Spill Detection and Remediation Agency (NOSDRA).


In its 2025 Gas Flare Report, NOSDRA disclosed that gas flaring rose by 7.2 per cent compared to the 301.3 billion SCF recorded in 2024, which was also valued at $1.1 billion.

The agency noted that gas flaring in 2025 contributed about 17.2 million tonnes of carbon dioxide emissions into the atmosphere. It also stated that the flared gas had the potential to generate 32,300 gigawatt hours (GWh) of electricity, while the offending firms were liable to pay penalties totaling $646.1 million (about N876.622 billion).


In comparison, NOSDRA said the 301.3 billion SCF of gas flared in 2024 produced 16 million tonnes of carbon dioxide, with an electricity generation potential of 30,100 GWh, while penalties payable stood at $602.7 million (about N818.271 billion).


Onshore operations account for bulk of flaring

A breakdown of the 2025 data showed that companies operating in Nigeria’s onshore oil segment accounted for the largest share of flaring, burning 206.3 billion SCF, representing 63.8 per cent of total gas flared during the year.


NOSDRA said onshore flaring in 2025 was 18.36 per cent higher than the previous year and resulted in the loss of about 20,600 GWh of potential electricity generation. It also contributed 11 million tonnes of greenhouse gas emissions.


The regulator valued the gas flared onshore at $722 million (about N979.754 billion), while penalties payable by the companies were estimated at $412.6 million (about N560.441 billion).

In 2024, gas flared onshore stood at 174.3 billion SCF, valued at $610 million (about N827.77 billion), with penalties payable at $348.6 million (about N473.593 billion). The flaring also caused a power generation loss of 17,400 GWh and contributed 9.3 million tonnes of carbon dioxide emissions.


Offshore flaring declines

Offshore operations accounted for 36.2 per cent of total gas flared in 2025, with companies burning 116.8 billion SCF, valued at $408.7 million (about N555.013 billion).


NOSDRA said offshore flaring attracted penalties of $233.5 million (about N317.538 billion), contributed 6.2 million tonnes of carbon dioxide emissions, and eroded about 11,700 GWh of electricity generation potential.


This represents a decline compared to 2024, when offshore companies flared 127.1 billion SCF, valued at $444.7 million (about N603.865 billion), with penalties payable at $254.1 million (about N344.678 billion). Offshore emissions in 2024 stood at 6.7 million tonnes, while power generation potential lost was estimated at 12,700 GWh.


Oil blocks and companies implicated

NOSDRA listed several oil blocks where the flaring occurred, including Oil Mining Leases (OMLs) 04, 05, 11, 13, 14, 17, 18, 22, 23, 24, 28, 38, 40, 42, 43, 49, 54, 59, 67, 70, 72, 86, 90, 95, 99, 100, 101, 102, 104 and 110, among others. Oil Prospecting Licences (OPLs) identified include 090, 209, 212, 216, 222, 246, 306 and 316.


The agency also identified several companies linked to the gas flaring, including Shell Petroleum Development Company (SPDC), Nigerian Petroleum Development Company (NPDC), Chevron Nigeria, Mobil Oil, Elf Petroleum Nigeria, Nigeria Agip Oil Company (NAOC), Addax Petroleum, Texaco Overseas (Nigeria), Esso Exploration and Production Nigeria, as well as Allied Energy Resources, Ultramar Petroleum, Atlas Petroleum, Cromwell, Afric Oil and Marketing, Famfa Oil, Moni Pulo, South Atlantic Petroleum, Star Deep Water, Summit Oil, among others.


NOSDRA’s report highlights the continued economic and environmental cost of gas flaring in Nigeria, despite the country’s push toward cleaner energy practices and improved gas utilisation.

Source: Sweetcrude Report