IMPACT OF GAS FLARING ON THE NIGERIAN ECONOMY AND ENVIRONMENT.

ABSTRACT

Countries are encouraged to maximize their resources and use them to promote the actualization
of the country’s economic growth and development. However, certain objectives should guide
countries as they seek to maximize their resources and countries should not use their resources in
ways that depreciate the quality of the environment. Also, countries need to have certain
objectives guiding the development of policies for energy development.

One of the objectives considered when making policies in developing countries, for example,
Nigeria, is the establishment of energy development that will be efficient economically and
sustainable1.

However, when the issue of gas flaring is considered, one wonders if this objective is considered,
because gas flaring is neither promoting economic development in Nigeria, neither is it
promoting sustainable development, instead it is decreasing the condition of our environment.

This paper will analyse the impact of gas flaring on the Nigerian economy, and the impact on the
Nigerian environment also. This analysis will help in providing recommendations on how gas
flaring activities can be mitigated and gradually ended in Nigeria.

BACKGROUND OF STUDY

In Africa, Nigeria has the largest gas reserve, and the ninth-largest gas reserve in the world, with
about 5,676.5 billion cubic metres of natural gas2. Nigeria’s established oil reserves are adjudged
at 36,972 million barrels which is 207.6 billion cubic feet of natural gas equivalent. The
implication of this is that Nigeria gas reserves are 900 times the country’s total oil reserves,
Nigeria additionally accounts for 2.7% of the global established reserves of gas3.

1
Impact of Gas Industry on sustainable economy in Nigeria: further estimations through review available at
https://scialert.net/fulltext/?doi=jas.2012.2244.2251 (accessed 14 May 2021).
2
Independence of domestic gas consumption on the Nigerian economy available at
https://www.researchgate.net/publication/332530872_Independence_of_Domestic_Gas_Consumption_on_Nigerian
_Economy (accessed 14 May 2021).
3
Assessing the impact of gas flaring on the Nigerian Economy available at
https://www.pwc.com/ng/en/assets/pdf/gas-flaring-impact2.pdf (accessed 14 May 2021).
As of 2018, Nigeria produced 1.7 trillion cubic feet or 49.2 billion cubic metres of natural gas,
this figure excludes flared gas. Despite the proven and unproven large reserves of Nigeria, the
gas production is relatively low4.

When crude oil is extracted from underground, and natural gas is raised to the surface flaring is
said to have occurred5. In areas with limited infrastructure, the gas may be burned off at the top
of a huge stack or from a pit in the ground, the result of this is usually devastating on
communities around it. Gas flaring emits methane, black carbon, and some volatile organic
compounds. Black carbon and methane are classified as climate forcers, while volatile organic
compounds are classified as dangerous air pollutants 6. Nigeria is seventh on the list of top
countries that engage in gas flaring. Gas flaring has been the subject of criticisms all over the
world, unfortunately this practice is still obtainable in certain countries.

The government to fast-track the growth and progress of the gas sector, stipulate ways to reduce
gas flaring, and push domestic consumption of gas through embarking on gas allied projects in
Nigeria established certain frameworks. Examples of such frameworks are The National Gas
Policy and the Nigerian Gas Flare Commercialization Programme.

The World Bank estimates that gas flaring cost the global economy $20 Billion in 2018, it is
estimated that the Nigerian economy lost about 233 Billion Naira to gas flaring, this also
amounted to 3.8% of the global total costs in 20187.

Gas flaring has also incurred great environmental costs in Nigeria, because according to a study
conducted by the National Environmental, Economic and Development Study (NEEDS) for
climate change in Nigeria, the environmental costs of gas flaring stand at a staggering figure of
28.8 million naira annually8.

4
Ibid
5
Gas flaring has dangerous side effects but these mitigation opportunities could be a win for everyone available at
http://web.archive.org/web/20201126152607/https://ccacoalition.org/en/news/gas-flaring-has-dangerous-side-
effects-these-mitigation-opportunities-could-be-win-everyone (accessed 14 May 2021).
6
Ibid
7
Assessing the impact of gas flaring on the Nigerian Economy available at
https://www.pwc.com/ng/en/assets/pdf/gas-flaring-impact2.pdf (accessed 14 May 2021).

8
Ibid
Although Nigeria through the NNPC intended to end gas flaring in 2020, a decade earlier than
the target set by the Paris Accord9, it must be noted that Nigeria has failed to meet this target, as
in 2021, the issue of gas flaring is still persistent, and its negative impact is still felt in Nigeria
both economically and environmentally.

This means that better efforts have to be put in place to put an end to gas flaring, international
frameworks and suggestions have to be implemented, and there must be through effort in Nigeria
to set reasonable goals to gradually phase out gas flaring.

RESEARCH PROBLEMS

1. Gas flaring has harmed the Nigerian economy, and money that could be used for better
things have been lost to the effects of gas flaring
2. The lack of employment of alternatives to gas flaring has seen Nigeria persist in gas
flaring despite its obvious problems in Nigeria.
3. The absence of infrastructural support. The lack of processing and storage facilities has
led to excess gas flaring.
4. Gas flaring has also impacted badly on our environment. It leads to atmospheric
pollution, which in turn causes serious problems for the environment.
5. Failure to provide deterrent measures. The penalties imposed for gas flaring are not
stringent enough, and companies that engage in gas flaring comfortably break it because
they believe they can easily pay the penalties attached.
6. The lack of urgency in passing other bills that will act as components to the Petroleum
Industry Bill such as Petroleum Industry Administration Bill, Petroleum industry
Fiscal Bill, Petroleum industry host community Bill10.

RESEARCH OBJECTIVES

1. To comprehensively and vividly give the impact of gas flaring on the Nigerian economy.

2. To comprehensively give the impact of gas flaring on our environment in Nigeria.

9
Ibid
10
Ibid
 3. To expantiate on the problems faced in putting a stop to gas flaring.

4. To state the laws and regulations in place to prohibit gas flaring.

5. To analyse the flaws in those regulations, and the leeway used by companies to continue
perpetrating gas flaring in Nigeria such as low penalties.

6. To expound on recommendations to curtail gas flaring and its impact on the economy and
the environment by extension.

7. To expound on alternatives that will help in avoiding gas flaring in Nigeria.

8. To propose examples of infrastructural support that can be used to stop gas flaring.

RESEARCH QUESTIONS

1. What is gas flaring?

2. What is the impact of gas flaring on the Nigerian economy?

3. What is the impact of gas flaring on the Nigerian environment?

4. What are the things that promote gas flaring in Nigeria?

5. What are the laws and regulations on gas flaring in Nigeria?

6. How can gas flaring be stopped in Nigeria?

7. What are the issues in curtailing gas flaring in Nigeria? 

8. What are the available alternatives to gas flaring?

METHODOLOGY

Qualitative research is the method to be used. The work will rely on both primary and secondary
sources of information. The primary sources include Case Law, local statutes, and International
Statutes, texts of international treaties and conventions.
The secondary sources include relevant books, journal articles, materials from periodicals in
these fields and materials from the internet. All data obtained will be subjected to content
analysis.

SCOPE

The scope of this research is: 

1. A background of gas flaring in Nigeria.

2. A review and critique of gas flaring frameworks in Nigeria.

3. Impact of gas flaring on the Nigerian economy.

4. Impact of gas flaring on the Nigerian environment.

5. Challenges in prohibiting gas flaring.

6. Nigerian laws prohibiting gas flaring in Nigeria.

7. Recommendations on laws to prohibit gas flaring in Nigeria.

BIBLIOGRAPHY

Assessing the impact of gas flaring on the Nigerian Economy available at

https://www.pwc.com/ng/en/assets/pdf/gas-flaring-impact2.pdf (accessed 14 May 2021).

Gas flaring has dangerous side effects but these mitigation opportunities could be a win for
everyone available at
http://web.archive.org/web/20201126152607/https://ccacoalition.org/en/news/gas-flaring-has-
dangerous-side-effects-these-mitigation-opportunities-could-be-win-everyone (accessed 14 May
2021).

Impact of Gas Industry on sustainable economy in Nigeria: further estimations through eview
available at https://scialert.net/fulltext/?doi=jas.2012.2244.2251 (accessed 14 May 2021).
Independence of domestic gas consumption on the Nigerian economy available at
https://www.researchgate.net/publication/332530872_Independence_of_Domestic_Gas_Consum
ption_on_Nigerian_Economy (accessed 14 May 2021).