Transforming Gas Flaring Into Economic Growth
The Nigerian government has highlighted the potential of the Nigeria Gas Flare Commercialisation Program (NGFCP) to attract up to $2.5 billion in investments within the oil and gas sector. This initiative aims to boost government revenues while addressing environmental concerns.
Launched as a strategic solution, the NGFCP seeks to eliminate gas flaring by turning waste into economic value. The program is also a key part of Nigeria’s roadmap toward achieving Net Zero Carbon Emissions.
Embedding Sustainability in Nigeria’s Energy Sector
Gbenga Komolafe, the Commission Chief Executive (CCE) of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), shared these insights during the Nigerian International Energy Summit (NIES) in Abuja.
He emphasized that as the world transitions to a low-carbon economy, Nigeria is integrating sustainability initiatives, including the NGFCP, into upstream operations. These measures aim to minimize environmental risks and safeguard communities affected by gas flaring.
Strengthening Energy Security and Increasing Oil Production
In the short term, the federal government has set ambitious targets to enhance oil and gas production. Komolafe revealed that Nigeria aims to increase its rig count to 50 by the end of 2025, significantly reinforcing energy security.
He further stated, “To achieve 40 billion barrels of oil and 220 trillion cubic feet of gas, we have implemented aggressive strategies to accelerate exploration and development. As part of these efforts, we concluded the 2022/2024 bid licensing round, granting 27 Petroleum Prospecting Licenses (PPLs) across various terrains.”
Additionally, preparations are underway for the 2025 bid round, adopting an annual licensing model to ensure consistent investment in the sector.
Oil and Gas Reserves Show Steady Growth
Nigeria’s oil and gas reserves have recorded notable increases over the past few years. Between 2023 and 2024:
- Oil reserves rose by 1.43%, reaching 37.5 billion barrels.
- Gas reserves grew by 0.21%, reaching 209.26 trillion cubic feet.
- The country’s rig count jumped from 8 in 2021 to 40 in 2024, with projections to hit 50 by year-end.
- Crude oil production surged by 70%, climbing from 1 million barrels per day (bopd) in 2021 to approximately 1.75 million bopd in 2024.
Unlocking Nigeria’s Full Production Potential
Komolafe stressed that Nigeria’s extensive oil reserves present a significant opportunity for economic transformation. While the nation currently produces about 1.75 million bopd, technical assessments suggest it could reach 2.24 million bopd with the right strategies.
To bridge this gap, the government is prioritizing transparency, fostering partnerships with exploration and production (E&P) companies, and fast-tracking field development. Additionally, the adoption of advanced oil recovery technologies, cost-cutting initiatives, and reduced entry barriers aim to optimize production.
Tackling Revenue Leakage and Crude Theft
Highlighting efforts to maximize value, Komolafe said, “The potential for higher production is enormous, and NUPRC is dedicated to unlocking every possible avenue. Our strategy includes reactivating shut-in wells and capitalizing on low-hanging opportunities to meet the Project 1MMbopd additional production target.”
The government is also advancing initiatives like the Advanced Cargo Declaration Solution and Engineering Audit of Upstream Measurement Equipment. These non-kinetic approaches are designed to combat crude oil theft, prevent revenue losses, and ensure greater efficiency in the sector.
