Nigeria Gas Flaring Wastes US$1.1 Billion in Power

Africa · Western

Nigeria gas flaring rose sharply in 2025, wasting 32,300 gigawatt-hours of potential electricity worth $1.1 billion while the national grid struggles to supply even 5,000 megawatts to Africa’s largest economy.

The numbers behind Nigeria gas flaring in 2025

Data from the National Oil Spill Detection and Remediation Agency (NOSDRA) show operators flared 323 billion standard cubic feet (BSCF) of natural gas last year. That volume represented a 7% increase over 2024 and carried a market value of roughly $1.1 billion (₦1.493 trillion).

The onshore segment drove most of the deterioration. Onshore flaring reached 206.3 BSCF, an 18.36% jump from the previous year, accounting for nearly two-thirds of all gas burned at the wellhead.

Converted to electricity, the flared gas could have generated 32,300 GWh. That single-year loss exceeds what many mid-sized African nations consume in total.

A grid in crisis while gas burns

Nigeria’s installed generation capacity sits above 12,000 MW, yet available power rarely crosses 5,000 MW. In 2024 the country struggled to sustain even 4,000 MW for households and businesses.

The contrast is stark. While millions of Nigerians rely on expensive diesel generators, the country burned off enough gas in 2025 to stabilise supply across several regions.

BudgIT, a Lagos-based data watchdog, calculates that gas flared between 2021 and 2024 could have produced 110,166 GWh. That is enough to power thousands of homes without interruption for years.

Who gains and who loses from Nigeria gas flaring

The persistence of flaring is not a technical problem alone. It reflects a political economy where export revenues from crude oil and liquefied natural gas take precedence over domestic energy needs.

Nigeria’s national oil company NNPCL and its international partners earn most of their hard currency from exports. Capturing associated gas for power would redirect value to local consumers and industries, a shift that challenges entrenched interests.

The losers are ordinary Nigerians and businesses. They pay for self-generation while the country burns away fuel that could underpin cheaper, more reliable grid electricity.

Illegal since 2005, yet intensifying

Routine gas flaring has been formally illegal in Nigeria since 2005. The government has also pledged to achieve Zero Routine Flaring by 2030 under World Bank-backed commitments.

Yet enforcement remains weak. NOSDRA calculated $646.1 million in flaring penalties for 2025, but most of these fines go uncollected.

A 2024 Nigeria Extractive Industries Transparency Initiative report noted over $1.4 billion in unpaid gas royalties and flaring penalties.

The Institute for Security Studies recently observed that Nigeria remains a leading offender globally, despite the long-standing legal ban. The country ranked second-highest in flaring intensity worldwide in 2024.

The great-power and climate dimension

Nigeria’s flaring record sits at the intersection of global energy security and local energy poverty. European and Asian buyers court Abuja for LNG and crude, yet domestic power generation remains starved of gas.

The climate stakes are equally high. NOSDRA estimates the 2025 flaring produced 17.2 million tonnes of CO₂ emissions.

Researchers affiliated with the agency calculate that under favourable carbon-market conditions, captured gas could yield $7 billion to $12 billion annually in climate-related revenue.

This dynamic mirrors patterns seen across resource-rich frontier markets, as explored in our pillar Africa: The New Scramble. External powers compete for energy access while local populations bear the environmental and economic costs.

What to watch next

Several forces could reshape Nigeria gas flaring trends in the coming years. International oil companies continue to exit onshore joint ventures, selling assets to local firms with weaker environmental track records and less access to decarbonisation finance.

At the same time, global lenders are increasingly restricting financing for fossil-fuel projects without strong climate components. That makes it harder for Nigeria to secure capital for the gas-processing plants and pipelines that would reduce flaring.

The direction of policy under President Bola Tinubu’s administration will be decisive. So far, the gap between stated commitments and on-the-ground enforcement remains wide.

More: Nigeria news in English, every day from The Rio Times.

Frequently Asked Questions

How much electricity did Nigeria lose to gas flaring in 2025?

According to NOSDRA data, Nigeria lost 32,300 GWh of potential electricity to gas flaring in 2025. That figure is based on 323 billion standard cubic feet of flared gas and exceeds the annual power consumption of many mid-sized African countries.

Why does Nigeria continue to flare gas despite a legal ban?

Routine flaring has been illegal since 2005, but enforcement is weak. Penalties are often lower than the cost of installing gas-capture equipment, and most fines go uncollected.

Export-focused operators also have limited incentive to invest in infrastructure for domestic power.

What is the economic value of Nigeria’s flared gas?

NOSDRA valued the gas flared in 2025 at $1.1 billion (₦1.493 trillion). Broader estimates that include unrealised carbon-credit revenue and environmental damage place the annual loss at $7 billion to $12 billion.