Gas flaring has cost Nigeria $22.9 billion in 9 years
By Patience Ikpeme
Nigeria has lost more than $14.6 billion in revenues ensuing from over 4.2 billion standard cubic feet of gas flared from 2012 to 2021.
Also, the country sustained additional penalty of $8.3 billion for this wastage, totalling the lost to $22.9 billion from 2012 to 2021.
To tackle these great financial losses, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) plans to join forces with the Nigerian Upstream Regulatory Commission (NUPRC) and the Nigerian Oil Spill Detection and Response Agency (NOSDRA) to enhance revenue generation by implementing effective gas flaring management strategies.
This was recently made public in Abuja , at an interactive forum between delegations from NUPRC, RMAFC and NOSDRA .
The Director of ICT in NOSDRA , Mrs Margaret Adeshida called to attention the need for proper minimisation of gas flaring in the country.
She stated that ” the country flared more than 4.2 billion standard cubic feet of gas leading to the country’s loss of more than $14.6 billion worth of revenue between 2012 and 2021. This is an addition to $8.3 billion loss penalty for the wastage totalling $22.9 billion loss within the same period”.
Also at the event, the Director of Economic Regulation and Strategic Planning at NUPRC, Mr Babajide Fashino painted a beautiful picture of Nigeria’s gas flaring practices.
Mr Fashino stated that ” Nigeria is currently doing well by managing gas flaring in accordance with global best practices for achieving economic growth and sustainability “.
He went further saying ” this commendable feet has been achieved through the implementation of a metering system accompanied by thorough calibration procedures for the meticulous monitoring and recording of all gas management activities “.
He further pointed out that because of these innovative measures, gas flaring in Nigeria has significantly reduced from an alarming 40% to an impressive 7%.
Also speaking at the event, the RMAFC’s chairman, Mohammed Bello Shehu emphasized the importance of prioritizing the gas sector in the nation’s drive towards building revenue generation.
Mohammed Shehu emphasized the need for regulatory bodies such as NUPRC and NOSDRA to play a significant role in assessing the quality and quantity of gas production , as well as ensuring strict adherence to the environmental standards for the benefit of host communities.
In this regards, Mohammed Shehu encouraged stake holders involved in gas economy management, including the revenue monitoring committee of the current administration to combine efforts and develop effective strategies.
He also stated that the ultimate goal is to transform flared gas into valuable economic resources, thereby increasing revenue generation that will contribute to the growth of the federations account.
“This collaborative effort will play a crucial role in salvaging the country and maximizing the economic potential of gas flaring” he said.
