Ike Amos
Dublin, Ireland — Nigeria lost $656.6 million, about N528.563 billion in nine months, as oil and gas firms operating in the country flared 187.6 billion standard cubic feet (SCF) of gas between January and September 2023, data revealed by the National Oil Spill Detection and Response Agency (NOSDRA) have revealed.
According to the environmental watchdog, this amount was 18.93 per cent higher than the $552.1 million, about N444.44 billion lost to gas flaring in the same nine-month period in 2022.
These huge losses to gas flaring have always elicited concerns among critical stakeholders, especially as the Nigerian economy continues to grapple with declining revenue, rising debts and worsening poverty.
Giving a breakdown of the losses to the economy and damage to the environment, NOSDRA disclosed that the 187.6 billion SCF of gas flared between January and September 2023 had power generating potential of 18,800 gigawatts hours of electricity (GWh) and contributed 10.0 million tonnes of carbon dioxide emissions to the environment.
In addition, the agency noted that the offending companies were liable for penalties of $375.2 million, about N302.036 billion, using the Central Bank of Nigeria’s (CBN) exchange rate of N805 to a dollar.
The environmental watchdog noted that a large percentage of the fines are never collected as the majority of the companies do not remit the fines to the government or its agencies.
On the other hand, in the nine-month period of 2022, 157.8 billion SCF of gas flared was valued at $552.1 (N444.44 billion), contributed 8.4 million tonnes of carbon dioxide (C02) to the environment, had power generation potential of 15,800 GWh, while the companies were liable for penalties of $315.5 million, about N253.978 billion.
Furthermore, NOSDRA stated that companies operating in Nigeria’s offshore oilfields accounted for 54.72 per cent of total gas flared in the nine-month period of 2023, with 102.7 billion SCF of gas valued at $359.3 (N165.267 billion); 5.5 million tonnes of C02 emitted into the atmosphere; power generation potential of 10,300 GWh and penalties payable at $205.3 (N165.267 billion).
In comparison, this was 29.15 per cent higher than the 79.5 million tonnes of gas flared between January and September 2022, valued at $278.2 million (N223.951 billion); with penalties payable at N159 million (N127.995 billion); power generation potential of 7,900 GWh and C02 emissions of 4.2 million tonnes.
On the other hand, NOSDRA reported that gas flaring activities of companies operating in the country’s onshore oilfields between January and September 2023, cost the country $297.3 million (N239.327 billion) in revenue loss from the flaring if 84.9 billion SCF of gas; 8,500 GWh in potential power generation capacity lost; 4.5 million tonnes of C02 emitted to the atmosphere and penalties payable at $169.9 million (N136.769 billion).
Comparatively, between January and September 2022, companies operating onshore flared 78.3 billion SCF of gas valued at $273.9 million, about N220.489 billion, were liable for penalties valued at $156.5 million (N126.063 billion); C02 emissions of 4.2 million tonnes and was capable of generating 7,800 GWh of electricity.
