Nigeria’s Gas Windfall: N8.6tn Generated in 2024 Amid Rising Flaring Concerns
Nigeria’s natural gas sector yielded approximately ₦8.6 trillion in revenue in 2024, according to data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The figure underscores the growing importance of natural gas to Nigeria’s economy, even as concerns mount over increased gas flaring and infrastructure deficits.
The NUPRC reported that the country produced 2.5 trillion cubic feet (TCF) of gas in 2024, consisting of 1.44 TCF of associated gas—found alongside petroleum reserves—and 1.06 TCF of non-associated gas from standalone gas fields. Of this, 2.31 TCF (92.2%) was utilised, while 192.89 billion standard cubic feet (BSCF), or 7.69%, was flared.
Record Revenues, Persistent Challenges
At the 2024 domestic base price of $2.42 per million metric British thermal units (MMBTU), Nigeria’s utilised gas—amounting to approximately 2.37 billion MMBTU—generated $5.74 billion, translating to ₦8.6 trillion at an average exchange rate of ₦1,500 per dollar.
However, environmentalists have criticised the rise in gas flaring, which increased from 183.52 BSCF in 2023 to 192.89 BSCF in 2024, despite ongoing government efforts to curb the practice. The Federal Government has pledged to reduce flaring as part of its Decade of Gas initiative, which aims to position Nigeria as a global gas hub by 2030.
Building a Gas Economy
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, outlined the government’s plans to grow gas production from the current daily average of 7 billion cubic feet (BCF) to 12 BCF by 2030. “We are progressing in that direction to ensure gas sufficiency in the country,” Ekpo stated, emphasising that international oil companies (IOCs) are shifting operations to deep-water fields, where significant gas reserves lie.
Nigeria’s gas reserves stand at 209.26 TCF, and the government has made clear its ambition to leverage this resource to reduce dependence on petrol and diesel. The Presidential Compressed Natural Gas (CNG) Initiative was launched following the removal of fuel subsidies, aiming to transition Nigeria toward cleaner energy alternatives.
Infrastructure Deficits and Adoption Hurdles
Despite the government’s ambitions, the adoption of CNG faces significant barriers. A lack of refuelling stations and the high cost of converting petrol-powered vehicles to CNG have slowed progress. Experts warn that without robust infrastructure investment, Nigeria’s transition to a gas-driven economy may stall.
Critics also argue that the government’s focus on gas expansion must be matched with efforts to address persistent gridlock in the energy sector. Public frustration over inadequate energy access and environmental degradation continues to grow, even as the sector generates record revenues.
The Road Ahead
As Nigeria moves to establish itself as a global player in the gas economy, balancing economic growth with environmental responsibility and infrastructure development remains a pressing challenge. While the ₦8.6 trillion windfall underscores the sector’s potential, its full realisation hinges on sustained investment, regulatory reforms, and a commitment to sustainable energy practices.
