Why Nigeria’s Gas Flaring Penalties Still Aren’t Working

Despite strict regulations, gas flaring remains widespread in Nigeria. This article explores why penalties aren’t working, revealing issues like weak enforcement, low fines, and poor infrastructure that hinder progress toward environmental sustainability.

Written by Warrence Oghenevwegba

Published On: July 3, 2025, 10:26 P.M

Despite years of policy reforms and billions of cubic feet of wasted gas, the skies over the Niger Delta continue to glow with the relentless orange flare of burning natural gas. Nigeria, Africa’s biggest oil producer, has long pledged to end gas flaring, yet the fires still burn.

So, if penalties for gas flaring exist, why hasn’t the practice stopped?

To understand why Nigeria’s gas flaring penalties still aren’t working, we need to look beyond the policies and into the machinery of enforcement, corporate incentives, infrastructure deficits, and systemic loopholes that continue to undermine climate goals and environmental justice.

The Problem Isn’t New

Gas flaring in Nigeria began as a side effect of crude oil extraction during the 1950s. Decades later, despite national and international pressure, Nigeria still ranks among the top 10 gas-flaring countries globally. According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigeria flared around 275.7 billion standard cubic feet (scf) of gas in 2023 alone. This resulted in over 16 million tonnes of carbon dioxide emissions and a loss of nearly 900 million dollars worth of gas that could have powered millions of homes or fueled industrial development.

Nigeria has committed to ending gas flaring multiple times, with shifting deadlines from 1984 to 2008 to 2020. Now, 2030 is the new target under its National Gas Policy and Net Zero pledge. But just like the previous deadlines, this goal too faces formidable challenges.

Penalties: A Bark Without Bite?

At face value, Nigeria’s gas flaring penalties appear strict. Under the Flare Gas (Prevention of Waste and Pollution) Regulations of 2018, companies are fined 2 dollars per 1,000 scf of gas flared. The 2021 Petroleum Industry Act (PIA) reaffirmed this approach, introducing a tighter regulatory framework and a “no flare” mandate, except in cases of emergency or safety.

But here’s the catch: the penalties are far too low to act as a real deterrent.

Oil companies operating in Nigeria, many of them multinational giants, generate millions in daily revenues. A 2 dollar penalty per 1,000 scf pales in comparison to the logistical costs of gas capture, processing, and reinjection infrastructure. For many firms, it is simply cheaper to pay the fines and flare the gas than to invest in long-term solutions.

And even when fines are issued, collection and enforcement are spotty at best. A 2021 audit by the Nigerian Extractive Industries Transparency Initiative (NEITI) revealed inconsistencies in flare volume reporting and inadequate mechanisms for fine recovery. In many cases, regulators rely on self-reported data from the very companies they are supposed to police.

Infrastructure Deficit: Nowhere to Send the Gas

Another key factor is Nigeria’s limited gas processing and transmission infrastructure. Even when companies wish to commercialize associated gas, many remote oil fields lack the pipelines or facilities needed to transport or utilize it.

The Nigeria Gas Transportation Network Code and projects like the AKK Pipeline and the Decade of Gas initiative aim to address this. But progress remains slow, hampered by funding gaps, security concerns in host communities, and bureaucratic red tape.

Meanwhile, community health and livelihoods continue to suffer. Gas flaring releases methane, black carbon, and volatile organic compounds, all of which contribute to respiratory diseases, acid rain, and environmental degradation. Flaring also contributes significantly to Nigeria’s greenhouse gas emissions, making a mockery of its climate commitments under the Paris Agreement.

Turning the Tide: What Needs to Change?

If Nigeria truly wants to end gas flaring, it must raise penalty fees to levels that make flaring uneconomical. In tandem, the government must invest heavily in gas infrastructure, especially in underserved areas. Most importantly, enforcement must be independent, transparent, and immune to political interference.

The private sector, too, has a role to play. Companies should prioritize sustainability and environmental responsibility, not just compliance. Innovative models like gas-to-power projects, mini-LNG systems, and flare gas monetization schemes must be scaled up with incentives for clean energy conversion.

Communities affected by flaring should be empowered through environmental justice mechanisms, including health support, alternative livelihoods, and participation in flare monitoring initiatives.

So What Next?

Nigeria stands at a crossroads. It can continue to pay lip service to climate action while its skies blaze and communities choke, or it can act decisively, turning wasted gas into wealth and transforming environmental liabilities into sustainable assets.

If we can’t even stop setting our own skies on fire, how do we expect to lead Africa’s clean energy transition?