Nigeria Must Strive To Achieve 100% Gas Flare Elimination Target -Dr. Orji
By Sunday Etuka, Abuja
As the nation’s target to completely eliminate gas flare draws nearer, the Executive Secretary of Nigeria Extractive Industries Transparency Initiative (NEITI), Dr. Orji Ogbonna Orji has stressed the need to intensify efforts towards meeting the 100% elimination target, which is just a year away.
Dr. Orji stated this in his remarks at the 3rd National Extractive Dialogue, with the theme, “Gas Flare Reduction: Catalyst for Accelerating Nigeria’s Path to Net Zero Emission and Sustainable Development”, held on Wednesday in Abuja.
The agency’s latest report for the oil and gas industry disclosed that 884 million scf of gas was flared in 2011 when compared to the 249 million scf flared in 2021.
The data collected between 2011 and 2021 shows a decline in flaring by 51.27% of the volume of gas flared. Similarly, 129 million scf of was utilised in 2011 as compared to 915 million scf in 2021.
The report revealed that 9.8% of the gas produced and utilized in 2021 was flared while 55% was sold. Data also indicated that gas flare has reduced by about 50% between 2021 and 2020.
Speaking on the development, the NEITI boss said, “though this is a remarkable improvement, we must strive to meet our country’s target of 100% gas flare elimination by 2025 which is just one year away and six years away from global commitment of 2030”.
Dr. Orji who represented by the NEITI’s Director of Policy Planning and Strategy (PPS), Dr. Dieter Bassi, noted that in recognition of the vital role which energy resources play in the nation’s economic aspirations, Nigeria is pursuing an energy transition plan to promote economic growth and encourage investments in renewable energy that would reduce carbon emissions, while utilising its natural gas as the transition fuel.
The ES recalled that in the agency’s Policy Advisory on The Way Forward in The Reform of Nigerian Oil, Gas and Mining Sector to President Bola Ahmed Tinubu, NEITI advocated for a comprehensive Gas Policy with clear roles for stakeholders with timelines to track progress, marshal out a detailed plan to end gas flaring through a private sector led commercialization program amongst other recommendations.
“We also canvassed for open, competitive and transparent Gas flare commercialization programme. This we have followed keenly with the NUPRC bidding process that was extended to accommodate new entrant and we strongly align with the Federal Government of Nigeria’s commitment to global emission reduction and methane abatement.
“We are also aware that this programme was conceived as a strategic market driven initiative of the Federal Government to eliminate routine gas flaring in the country through commercial mechanisms.
“The programme seeks to enable the Federal Government to award flare sites to competent third parties with proven technical capacity and financial capability to take the flare gas to market through a competitive bid rounds process.
“NEITI also urges the Federal Government through the NUPRC and NMDPRA to provide the political capital and ensure that there is open, competitive and transparent implementation of the Nigeria Gas Flare Commercialisation Programme and the regulations (Gas flaring, Venting and Methane Emissions (Preventing of Waste and Pollution) Regulations 2023).
“This is given its immense potential for revenue generation in the gas sector, our country’s net zero emission reduction and methane abatement overall plan”, Dr. Orji said.
He maintained that the Petroleum Industry Act 2021 could be considered as a beacon of hope in the fight against gas flaring as it imposes restrictions on flaring or venting natural gas and sets penalties for non-compliance, adding that its also mandates the installation of metering equipment and requires a natural gas flare elimination and monetization plan.
“I am very optimistic that with the progress made so far with the specific regulation on gas flare by NUPRC last year, that we are on the path to realizing our goals as a country.
“However, stringent measures should be put in place with a plan that has clear timelines for delivery. I do not think that NUPRC at this point with few months to 2025 should be making exceptions.
“Section 6(1) of the regulations (Gas flaring, Venting and Methane Emissions (Preventing of Waste and Pollution) Regulations 2023) grants the Commission power to award permit for access flare gas on an exclusive basis. NEITI advices that such exclusivity should not be exploited or granted to ensure 100% compliance levels by operators”, he said.
Dr. Orji, however, submitted that as an institution with longstanding experience in multi-stakeholder approaches, NEITI stands in a very strategic place to facilitate engagements and inclusive participation of all the relevant stakeholders in planning and implementation of the regulations on gas flare and methane abatement.
According to him, a successful transition to Just energy for Nigeria also, would require data and information for comprehensive planning, monitoring and evaluation of the transition implementation plans.
“This data includes social and economic impact of the transition as well as the progress and impact on Nigeria’s climate change and carbon emission reduction commitments.
“At NEITI, this is what we do best and we commit to support the Nigerian Energy Transition Plan with the required and credible data and information that will guide the formation of the plan and strategies and successful implementation process.
“The global Extractive Industries Transparency Initiative (EITI) model, which NEITI implements, is founded on the philosophy that regular disclosures of information and data in the extractive sector will promote public debate, foster civic actions and accountability in the sector.
“NEITI therefore, views the National Extractive Dialogue as another opportunity to deepen its engagements with credible Institutions to bring to the fore critical extractive issues and sustain the advocacy on sector reforms”, he said.
Earlier, in his Welcome Address, the Executive Director, Spaces For Change, Victoria Ibezim-Ohaeri said, the nation’s commitment to achieving net-zero emissions by 2060, highlighted by the Climate Change Plan’s ambitious 2030 target to cease gas burning, underscores the urgent need for collaborative action.
He noted that “the journey to a just transition is not one we undertake lightly. It demands on the collective efforts of policymakers, industry leaders, academics, civil society, and community representatives.
“The stakes are high. Gas flaring has far-reaching socio-economic and environmental impacts, particularly on our host communities. It exacerbates global warming, leads to economic losses, and squanders potential power generation resources.
“However, it is within our power to change this narrative. By reducing gas flaring, we can significantly cut our carbon emissions, unlock economic value, and foster sustainable development that benefits all Nigerians”, he said.
The NED2024, was jointly organized by Spaces for Change, the Nigerian Extractive Industries Transparency Initiative (NEITI), and the National Oil Spill Detection and Response Agency (NOSDRA), with the support of the Ford Foundation.
