Nigeria Loses 20,100 GWh to Gas Flaring in 2024

Nigeria has lost approximately 20,100 Gigawatt-hours (GWh) of power generation potential to ongoing gas flaring by oil companies in the first nine months of 2024. This marks a 5.5% increase compared to the 19,000 GWh lost during the same period in 2023.

The country’s gas flaring has risen by 8%, reaching 200.5 million standard cubic feet (MSCF) this year, up from 190.2 million MSCF in 2023. According to the National Oil Spill Detection and Response Agency (NOSDRA), the flared gas during this period is valued at approximately $701.8 million, with the responsible companies, including International Oil Companies (IoCs), facing fines totaling $401 million.

NOSDRA also reported that flaring from onshore operations increased by 10%, accounting for 105.5 MSCF, while offshore flaring was recorded at 95 MSCF.

The volume of gas flared equates to 10.7 million tonnes of carbon dioxide emissions. Despite efforts to mitigate gas flaring, it has persisted in Nigeria since the 1950s, contributing to environmental pollution.

Adetayo Adegbemle, Executive Director of PowerUp Nigeria, highlighted that various factors contribute to system failures in the power sector. He explained that system collapses occur when the demand from consumers significantly exceeds the available generation capacity.

This disruption impacts Electricity Generation Companies (GENCOs) and disrupts economic activities reliant on electricity, leading to financial losses and potential damage to electrical systems.

Adegbemle emphasized the need for effective systems to maintain grid stability, such as the SCADA system, which is designed to balance the grid and facilitate planning.

However, he noted delays in the installation of this critical system by the Transmission Company of Nigeria, despite significant investments of time and resources.