HomeBUSINESSNOSDRA Reports: Government's Losses Soar to N847 Billion Due to Gas Flaring

NOSDRA Reports: Government’s Losses Soar to N847 Billion Due to Gas Flaring

It was revealed that data from the National Oil Spill Detection and Response Agency (NOSDRA) has exposed a staggering loss of approximately N843 billion by the Federal Government due to gas flaring between January 2022 and August 2023.

This financial haemorrhage resulted from oil and gas companies operating in Nigeria, relentlessly spewing out 147.1 billion standard cubic feet (SCF) of gas, equivalent to a mind-boggling $514.9 million or about N390 billion, during the same period in 2022.

Moreover, the situation only worsened in 2023, with these companies flaring a heart-stopping 171.1 billion SCF of gas, worth an astronomical $599 million or approximately N453 billion. When combined, this colossal figure of about N847 billion represents the colossal financial drain on the nation’s resources within the same eight-month window in 2022 and 2023.

What’s even more alarming is the 16.28% surge in gas flaring in 2023 compared to the preceding year. This surplus gas, if harnessed, could have generated an astonishing 17,100 gigawatts/hour of electricity, but instead, it released a staggering 9.1 million tons of harmful carbon dioxide into the atmosphere, contributing to environmental woes.

The report also reveals that the offending companies were subject to penalties amounting to $342 million, roughly N251 billion. However, a significant portion of these penalties remains uncollected by the Federal Government.

Among the culprits named by NOSDRA are prominent players in the Nigerian oil and gas industry, including Shell Petroleum, Chevron Nigeria, Mobil Oil, and Nigeria Agip Oil Company, to name just a few. These companies have been flaring gas from numerous oil mining leases and oil prospecting licenses, adding further urgency to the need for stringent action.

This shocking revelation comes at a time when the Federal Government had pledged to the United Nations to achieve zero gas flare by 2060, a decade beyond the UN’s 2050 target.

The question now is whether this commitment can be upheld in the face of such staggering losses and environmental consequences. The nation’s future, both economically and ecologically, hangs in the balance.

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