From 2011 to 2021, Nigeria has recorded loss of over $22.9 billion to gas flaring, according to the Nigerian Oil Spill Detection and Response Agency (NOSDRA) on Monday.
The country flared more than 4.2 billion standard cubic feet of gas, leading to the Nigeria’s loss of more than $14.6 billion worth of revenue between 2012 and 2021.
This is in addition to an $8.3 billion dollars loss in a penalty for the wastages totaling $22.9 billion dollars loss within the same period.
Margaret Adeshida, Director of ICT in NOSDRA, made this known during an interactive forum with delegations from Nigeria Upstream Regulatory Commission (NUPRC), NOSDRA and the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) in Abuja, recently.
Adeshida said the development underscored the need for proper monitisation of gas flaring in Nigeria.
Meanwhile, Mohammed Shehu, chairman of RMAFC, the gas sector has been identified as a critical economic sector, in view of the current government’s mandate to shore up revenue.
He said working with NUPRC and NOSDRA as regulatory bodies will ensure the right quality and quantities of gas production alongside adherence to enviromental standards for host Communities.
Shehu therefore called on all the relevant stake holders in the management of gas economy to strategise on ways to convert gas flare to economic use for enhancing revenue generation into the Federation Account.
Also speaking, Babajide Fashino, the Director of Economic Regulation and Strategic planning of NUPRC, said that Nigeria is at the fore front of managing gas flaring in line with global best practices for economic growth and sustainability.
According to Fashino, the government has introduced metering system and callibration of the meters for accurate records of gas management.
“The introduction of such technologies has gone a long way in reducing gas flaring in Nigeria from 40 percent to not more than 7 percent.”