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Nigeria Loses N150bn to Gas Flaring in 4 Months 

Adaobi Rhema Oguejiofor

The National Oil Spill Detection and Response Agency (NOSDRA) has said that oil and gas companies operating in Nigeria have flared about 92.3 million standard cubic feet (mscf) of gas, which is worth an estimated amount of N150 billion between January and April 2023. 

This was revealed in a report that was released by the Agency, which also stated that the findings represent a 79.5 percent increase, as opposed to the 50.3 mscf of gas that was flared in the corresponding period of 2022. 

According to the gas flare tracker obtained from NOSDRA, the 92.3 mscf of gas that was flared in the first four months of 2023 translated to a gas value loss of about $323.1 million, which is equivalent to N150.08 billion based on the Central Bank of Nigeria (CBN) official exchange rate of N464.5 per dollar. 

As a result, the oil-producing firms responsible for this flaring are expected to pay penalties amounting to $184.6 million, which is equivalent of N85.7 billion, for breaching the gas flaring laws within the four-month period. 

The report also pointed out that the volume of gas that was flared within the four-month period is equivalent to 4.9 million tonnes of carbon dioxide emission and has a power generation potential of 9,200 gigawatts of electricity per hour.

NOSDRA, in its report, expressed that on a month-on-month basis, in January, February, March, and April, 23.2 mscf, 27.1 mscf, 25.9 mscf, and 16.1 mscf of gas were flared respectively.

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