The Nigeria Extractive Industries Transparency Initiative (NEITI) has warned that the ₦685.95 billion lost to gas flaring in 2023 alone may increase to ₦3.43 trillion in the next five years, if enforcement provisions in the Petroleum Industry Act (PIA) were not strengthened.
Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji spoke at a high-level policy dialogue on “Strengthening Methane Emissions Framework” on Friday in Abuja in collaboration with the Natural Resources Governance Institute (NRGI) and Paradigm Leadership Support Initiative (PLSI).
According to him, the volume of gas flared in 2023 had amounted to 183.408 billion standard cubic feet (SCF), with an estimated economic value of $458.52 million or ₦685.95 billion.
Concerned that such losses if sustained could amount to over $2.29 billion or ₦3.43 trillion in five years, he said the funds could support education, health, infrastructure, and climate resilience for host communities.
NEITI called on the National Assembly and regulators to strengthen enforcement provisions in the PIA and ensure transparent and accountable issuance of permits under the 2023 Gas Flaring, Venting, and Methane Emissions Regulations.
NEITI reaffirmed its commitment to using data, dialogue, and its regulatory leverage to drive reforms and promote environmental integrity across the extractive sector.
Orji called for a clear policy declaration that must institutionalize a methane governance regime that was robust, enforceable, transparent, and aligned with international best practices as the era of business-as-usual in methane emissions management was over.
He said: “Methane iss over 80 times more potent than carbon dioxide in its impact on global warming. Nigeria cannot claim seriousness on climate commitments, if we ignore the silent crisis of methane pollution across our extractive industries.
“Nigeria’s climate commitments will remain hollow without concrete action on methane reduction. Methane action is climate action, economic action, and social justice.
As part of its intervention, NEITI announced the adoption of a new Energy Transition and Climate Accountability Framework, which mandates: mandatory tracking of greenhouse gas (GHG) emissions and climate risks, independent oversight of oil company divestments, monitoring of Host Community Development Trusts under the Petroleum Industry Act (PIA), alignment of NEITI audit cycles with Nigeria’s Nationally Determined Contributions (NDCs) and, bi-annual public performance reviews on emissions.
The Executive Secretary revealed that NEITI has already integrated methane and greenhouse gas disclosures into its 2022 and 2023 oil and gas industry reports, with fifteen companies reporting emissions data.
“Going forward, NEITI will not publish any extractive industry report without climate and emissions data. This is a new standard and a non-negotiable requirement.”
The Executive Secretary announced that in furtherance of its mandate, NEITI committed to: “integrate methane tracking in its audits of the solid minerals and gas sectors, publish annual Methane Emissions Scorecards for companies, advocate for penalties and incentives linked to emissions performance, work with the judiciary to ensure environmental compliance through legal enforcement.
The Chairman, House Committee on Gas Resources, Mutu Ebomo, represented by Aluko Yinka, affirmed that the House Committee on Gas Resources was fully aware of the delicate balance between maximizing the economic potential of our gas sector and ensuring that we do so in a manner that is environmentally responsible and sustainable.
“We are committed to working with all stakeholders, government agencies, civil society, development partners, and the private sector, to establish a coherent and enforceable framework that promotes transparency, data integrity, and accountability across the gas value chain.”
Yinka stated that the Committee was open to supporting legislative measures that will address identified gaps in the current regulatory and operational practices and is ready to play its part, through policy reform, oversight, and collaboration, to ensure Nigeria meets its climate obligations while maintaining investor confidence in the gas industry.
The Senior Country Officer of the Natural Resource Governance Institute (NRGI), Ms. Tengi George Ikoli commended Nigeria for its strong commitment both nationally and internationally. She expressed hope that Nigeria is moving towards achieving Methane Emissions in line with global best practices.
“At the same time, Nigeria is scaling up natural gas development as part of its energy and economic strategy. This is a sovereign choice. But with that choice comes responsibility—to ensure that the sector is governed in a way that is transparent, efficient, environmentally safe, and socially responsive.”
The Executive Director of the Paradigm Leadership Support Initiative (PLSI), Mr. Olusegun Elemo stated that Data insight was not just an activity but one that allows collaboration with the government and important stakeholders.
Mr Elemo noted that the PLSI was fully committed to the process of achieving methane reduction and will continue to collaborate with stakeholders and actors in the process to ensure the goal is met.
