Reported by: Ijeoma G | Edited by: Oravbiere Osayomore Promise.
The Nigerian Upstream Petroleum Regulatory Commission has issued a stark and unflinching warning to companies holding flare gas commercialisation awards: develop the assets within one year or risk losing your permits. The regulator, in a statement on Wednesday, September 9, 2026, declared that it would no longer tolerate the indefinite idling of flare gas sites awarded under the Nigerian Gas Flare Commercialisation Programme (NGFCP), a move that signals the most aggressive push yet to end the decades-old environmental and economic scourge of gas flaring. The Commission Chief Executive, Oritsemeyiwa Eyesan, delivered the warning during a working visit to the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, in Abuja, stating that the commission would conduct a mandatory evaluation of all awardees one year after their permits are granted.
The warning comes as Nigeria intensifies its efforts to meet the ambitious target of ending routine gas flaring by 2030, a goal that has remained elusive for decades despite numerous policies and declarations. Eyesan was unequivocal in her message: the era of holding flare gas sites without tangible progress is over. She stated that one year after an award has been granted, the Commission conducts an evaluation to determine whether there has been considerable progress, and where there is insufficient progress, the Commission will take appropriate regulatory action, including revocation of the award where necessary. The statement underscores the commission's determination to ensure that flare gas resources are commercially harnessed rather than allowed to remain wasted through routine gas flaring.
The NGFCP, which was introduced to commercialise Nigeria's flared gas resources, has seen significant but incomplete progress. According to Eyesan, 43 flare gas sites were originally identified for the programme, but only 27 have so far been successfully awarded to investors. This means that 16 sites remain undeveloped, representing a significant missed opportunity to reduce environmental pollution, create jobs, and generate additional revenue. The programme is designed to give investors access to flare sites to develop commercially viable gas projects, thereby converting gas that would otherwise be burnt into products and services capable of supporting power generation, industrialisation and economic growth.
The regulator's renewed push comes as Nigeria seeks to unlock greater value from its enormous gas resources, which are among the largest in the world. The country currently has more than 215 trillion cubic feet of proven gas reserves, while its estimated total gas resource base stands at about 600 trillion cubic feet. Despite this vast potential, gas flaring has remained a major concern, with the World Bank's 2026 Global Gas Flaring Tracker Report ranking Nigeria as the eighth-largest gas-flaring nation globally. The country flared 37.6 billion cubic metres of gas between 2021 and 2025, representing a loss of about $12.15 billion. The report also indicated that rather than reducing, Nigeria's gas flare increased by eight percent between 2024 and 2025.
The NUPRC's threat to revoke permits is also part of a broader shift in the government's approach to gas flaring, moving from penalisation to commercialisation. The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, who received the update, called for a more deliberate and aggressive implementation of the gas commercialisation programme. He stressed that the core objective is to add value to Nigeria's gas resources by converting them into critical products and services, and that the country must move away from environmental pollution and toward productive resource utilization.
Eyesan also provided an update on the implementation of the Host Community Development Trust framework established under the Petroleum Industry Act, which was introduced to address longstanding grievances in oil-producing communities and ensure that petroleum resources contribute more directly to sustainable development in host areas. To date, 173 Host Community Development Trusts have been incorporated, 147 have been funded, over 1,001 projects are currently ongoing, while more than 200 projects have been successfully commissioned across host communities. The NUPRC has made it clear that it will not hesitate to use its regulatory powers to enforce compliance, and as the one-year deadline approaches, the clock is ticking for the 16 companies that have yet to develop their awarded flare gas sites. The question now is whether they will rise to the challenge or face the consequences of losing their permits.
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