To reverse the loss of potential revenue to gas flaring and capital flight due to regular importation of Liquified Natural Gas (LNG) to meet domestic demand, the Nigerian government introduced the Nigerian Gas Flare Commercialization Programme (NGFCP).

The initiative was introduced in 2016 to eliminate gas flaring by capturing it during oil exploration and making the gas available for sale to private firms who will be screened through a transparent bidding process.

The plan was that by 2020, the programme being handled by a team of professionals led by the Project Manager, Justice Derefaka, will bring gas flaring to an end.

However, as of April 2021, the practice which leads to waste of significant volume of gas resources and potential revenue continues despite the existence of a regulation and insufficient local supply of gas to meet demand.

In order to achieve zero gas flaring by 2020, a framework was designed to ensure an open, fair and transparent bidding process by investors who will monetise flare gas, that the investors get the gas at a fair price, improve flare gas monitoring and flare payment enforcement.

The country has missed the 2020 target as this valuable energy resource is wasted and more money is misused on importation of gas to plug gaps in local production. At the same time, Nigeria’s gas-powered electricity plants suffer from gas shortage leading to widespread regular power outage.

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