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Nigeria has once again been identified among the world’s largest gas flaring nations, raising renewed concerns about the country’s environmental performance, energy governance and the pace of its transition toward a cleaner and more sustainable energy future.
The latest findings from the World Bank’s Global Gas Flaring Tracker reveal that global gas flaring increased for the third consecutive year in 2025, reaching 167 billion cubic metres (bcm). The rise comes despite growing international efforts to reduce greenhouse gas emissions and accelerate the transition to cleaner energy systems.
For Nigeria, the report is another reminder that while climate commitments have become more ambitious on paper, translating those commitments into measurable environmental outcomes remains a significant challenge.
As one of Africa’s largest oil producers, Nigeria has repeatedly pledged to reduce routine gas flaring and improve the environmental performance of its petroleum sector. Yet the latest global assessment suggests that much more needs to be done to close the gap between policy commitments and implementation.
Understanding the Cost of Gas Flaring
Gas flaring is the controlled burning of natural gas that is released during crude oil extraction. Although the practice is sometimes necessary for safety reasons, routine gas flaring has become one of the most criticised environmental issues associated with oil production.
Instead of capturing and processing the gas for domestic use or export, it is burned into the atmosphere, releasing large quantities of carbon dioxide, methane and other harmful pollutants.
Beyond contributing to climate change, gas flaring represents a significant waste of valuable natural resources. Natural gas that could be converted into electricity, industrial fuel, cooking gas or feedstock for manufacturing is instead lost through combustion.
The World Bank estimates that the volume of gas flared globally in 2025 was worth approximately 54 billion dollars, highlighting not only the environmental consequences but also the enormous economic opportunity being lost.
For countries like Nigeria, where millions of citizens still experience unreliable electricity supply and businesses struggle with high energy costs, reducing gas flaring presents an opportunity to improve energy access while supporting economic development.
Nigeria’s Position Raises Fresh Questions
Nigeria remains among the countries contributing most significantly to global gas flaring, alongside several major oil-producing nations.
While oil continues to play a vital role in Nigeria’s economy through export earnings and government revenue, environmental advocates argue that continued high levels of gas flaring undermine the country’s climate ambitions and weaken confidence in its energy transition agenda.
Nigeria has committed to achieving net zero emissions by 2060 and has repeatedly expressed its intention to eliminate routine gas flaring. However, the latest findings indicate that implementation challenges continue to slow progress.
Industry observers point to ageing infrastructure, insufficient gas processing facilities, financing constraints and operational bottlenecks as some of the major barriers preventing the full utilisation of associated gas.
These challenges are compounded by the scale of Nigeria’s oil operations, many of which have operated for decades with infrastructure that requires significant upgrades.
The Human Impact Beyond the Numbers
While global reports often focus on emissions statistics, the consequences of gas flaring are perhaps most visible in the communities located near oil production facilities.
For decades, residents of Nigeria’s oil-producing regions have raised concerns about the environmental and health impacts associated with continuous gas flaring.
Communities have reported declining agricultural productivity, damaged vegetation, polluted air and concerns over respiratory illnesses believed to be linked to prolonged exposure to emissions from flare sites.
Environmental groups have also highlighted the broader ecological consequences, including soil degradation and the contamination of surrounding ecosystems that many local residents depend on for farming and fishing.
These impacts have made gas flaring not only an environmental issue but also a social and governance concern, placing greater responsibility on both government regulators and oil companies to adopt cleaner and more sustainable operating practices.
Why Gas Flaring Matters for ESG
The conversation around gas flaring has evolved beyond environmental compliance.
Today, reducing emissions has become an important measure of Environmental, Social and Governance (ESG) performance, with investors increasingly evaluating how companies manage climate risks and environmental responsibilities.
For oil and gas companies operating in Nigeria, effective gas management is becoming a key indicator of responsible corporate behaviour.
Businesses are under growing pressure to demonstrate that they are investing in technologies that reduce emissions, improve operational efficiency and minimise the environmental impact of extraction activities.
Failure to address routine gas flaring could expose companies to greater regulatory scrutiny, reputational risks and increased expectations from shareholders, financial institutions and sustainability-focused investors.
As global markets continue to prioritise lower-carbon investments, companies that successfully reduce emissions are likely to enjoy stronger investor confidence and improved long-term competitiveness.
Nigeria’s Efforts to Reduce Gas Flaring
Over the years, Nigeria has introduced several initiatives aimed at reducing routine gas flaring and encouraging the commercial utilisation of associated gas.
Among the most notable is the Nigerian Gas Flare Commercialisation Programme, which seeks to convert gas that would otherwise be flared into valuable economic resources through private sector investment.
The initiative was designed to reduce emissions, improve domestic gas supply, stimulate industrial development and create employment opportunities across the energy value chain.
The government has also introduced regulatory reforms and strengthened environmental requirements for operators within the upstream petroleum industry.
Despite these policy efforts, implementation has remained slower than expected.
Experts argue that achieving meaningful reductions will require sustained investment in gas gathering infrastructure, processing facilities, transportation networks and modern technologies capable of capturing gas that is currently wasted.
In addition, stronger regulatory enforcement and greater collaboration between government agencies, oil companies and investors will be necessary to accelerate progress.
Turning Waste Into Opportunity
One of the most significant messages emerging from the World Bank’s report is that gas flaring is not simply an environmental liability. It is also an untapped economic opportunity.
Natural gas that is currently burned could support electricity generation, power manufacturing industries, expand access to cleaner cooking fuels and contribute to national energy security.
For Nigeria, where energy demand continues to outpace supply, better utilisation of associated gas could help reduce dependence on expensive alternative energy sources while supporting broader economic growth.
Capturing gas instead of flaring it also aligns with the country’s ambitions to diversify its energy mix and strengthen resilience as the global economy gradually shifts toward cleaner energy technologies.
Rather than viewing gas flaring solely as a compliance issue, experts increasingly see it as an opportunity to unlock new investments, create jobs and improve environmental outcomes simultaneously.
The Road Ahead
The World Bank’s latest assessment serves as another reminder that ending routine gas flaring will require more than ambitious targets and policy declarations.
It will depend on consistent implementation, stronger environmental governance, increased investment in infrastructure and sustained collaboration between government, regulators, oil companies and development partners.
For Nigeria, reducing gas flaring represents more than an environmental obligation. It is an opportunity to strengthen energy security, improve public health, support sustainable industrial growth and reinforce the country’s credibility as it pursues its climate commitments.
As pressure mounts on governments and businesses to demonstrate measurable climate action, progress on gas flaring will remain an important indicator of Nigeria’s commitment to responsible resource management and sustainable development.
The challenge is significant, but so too is the opportunity. Every cubic metre of gas captured instead of flared represents cleaner air, greater energy efficiency, stronger economic value and a step closer to achieving a more sustainable future for both present and future generations.
See: Rich Land, Poor People: Who is Actually Responble for Nigeria’s Development Failure
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