Business
‘FG Lost $16trn To Gas Flare In 10Yrs’
A report by The Tide’s source has revealed that the Federal Government lost an estimated $16trillion to natural gas flaring in 10 years.
The Energy Institute’s 72nd edition of the “Statistical Review of World Energy 2023” said the amount was lost from 2012 to 2022.
A breakdown of the statistics showed that upstream and downstream oil and gas firms operating in the country flared the highest amount of gas in 2012, estimated at 12.9 billion cubic metres of natural gas, 9.2 billion cubic metres in 2013, 8.3 billion in 2014, and 7.5 billion cubic metres in 2015.
The flare kept decreasing as the year rolled by, with 7.2 billion cubic metres flared in 2016.
Flaring, again, rose to 7.5 billion cubic metres in 2017, before plummeting to 7.3 billion cubic metres in 2018, and then rose to 7.8 billion cubic metres in 2019.
It dropped significantly to 7 billion cubic metres in 2020, dropping further to 6.5 billion cubic metres in 2021, before resting at 5.3 billion cubic metres in 2022.
Summation of gas flared by the country in the 10 years under review gives an estimated 86.5 billion cubic metres.
According to the Hebrew Energy, value for each 1 billion cubic metres of natural gas is worth about $183m, giving an estimated $16tn lost to the menace within the period under review.
The government through former President Muhammadu Buhari had in 2020 pledged support to the United Nations 2050 zero gas emission agenda.
Buhari, however, said Nigeria would put a final stop to gas emission latest by 2060.
In line with the drive to end gas emission, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), in October, said FG had granted 42 firms gas flaring licenses in the 2022 Nigerian Gas Flare Commercialisation Programme auction process.
The Commission also said 38 of the companies have been awarded 40 flare sites for standalone single flare site development, while four are awarded nine sites to be developed as clusters.
As a form of penalty for gas flaring, NOSDRA said oil companies were liable to fines totaling $25.3m in July, an equivalent of N19.4bn going by the Central Bank of Nigeria’s current official exchange rate of N768.77/$.
Chief Executive, the NUPRC, Engr Gbenga Komolafe, said, “The wasteful disposal of natural gas is not only fraught with deleterious health/ environmental consequences but also a major source of resource waste and value erosion to the country”.
According to him, the Nigerian Gas Flare Commercialisation Programme will attract investments, and develop a transparent market mechanism through a competitive procurement process for allocating gas flares, under clear and transparent criteria to competent third-party investors using proven technologies in commercial applications globally.
Business
Nigeria’s Gold, Other Solid Minerals Being Stolen – NEC
The National Economic Council has expanded the mandate of its Ad-hoc Committee on Crude Oil Theft Prevention and Control to cover illegal mining.
This is just as the council raised the alarm that the nation’s solid minerals, including gold, are being mined and stolen.
Imo State Governor, Hope Uzodimma, who chairs the committee, disclosed this while briefing State House correspondents after the 153rd NEC meeting chaired by Vice President Kashim Shettima at the Presidential Villa, Abuja, yesterday.
Uzodimma said the expanded mandate is part of the government’s efforts to curb resource theft and increase revenue from Nigeria’s solid minerals sector.
“The National Economic Council Ad-hoc Committee on Crude Oil Theft Prevention and Control, which I chair, presented an interim report today to the Council.
“NEC received our report with satisfaction and expanded our Terms of Reference to now also take interest in solid minerals, because our solid minerals are being mined and stolen and not adding to national revenue,” said Uzodma.
He noted that the expanded role would enable the committee to coordinate with the Ministry of Solid Minerals Development and other federal and subnational institutions to combat widespread illegal gold mining and other forms of mineral smuggling that have deprived the country of much-needed foreign exchange.
“Going forward, our committee, working with other government agencies, will look at how to ensure that the revenue of the country arising from solid minerals like gold and other forms of solid minerals are not allowed to be stolen,” the governor added.
NEC’s Ad-hoc Committee on Crude Oil Theft Prevention and Control was first established under former President Muhammadu Buhari in August 2022.
It was reconstituted under President Bola Tinubu in December 2023 with Uzodinma as chairman.
The committee was initially mandated to address the challenge of crude oil theft and pipeline vandalism.
Its creation followed rising oil theft that had crippled national production and forced international oil companies to shut down key pipelines.
At the time, oil production had crashed to around 700,000–800,000 barrels per day, far below Nigeria’s OPEC quota, costing the government billions of dollars in lost export revenue.
Uzodimma explained that through what he called a “collaborative approach” involving regulators, operators, and the security forces, the committee had helped raise daily crude oil production to over 1.7 million barrels per day in the past 22 months.
The governor stated, “Before May 29, 2023, when President Bola Tinubu was sworn in, our crude oil production was around 700,000 to 800,000 barrels a day.
“Working with stakeholders, the regulators, operators in the industry, and the Navy, we were able to involve all the governors of crude oil-producing states and raise different security organisations.
“You would agree with me that as I speak, daily production is now in excess of 1.7 million barrels a day, and cases of pipeline vandalism and vandalisation of oil assets have also been on the decline.”
The council, he said, was satisfied with the progress and decided to deploy the same model of intergovernmental coordination, private-sector partnership, and multi-agency surveillance to the mining sector, plagued by resource theft.
“We are determined to ensure that crude oil production and gas are properly preserved for the benefit of our citizens.
“Now, with this new directive, we will also protect our gold and solid mineral assets,” Uzodinma added.
Nigeria’s illegal mining economy, particularly in gold, lithium, and other high-value minerals, has grown into a multibillion-naira shadow industry.
According to data from the Nigeria Extractive Industries Transparency Initiative, the country loses an estimated $9bn annually to illegal mineral extraction and smuggling.
The Federal Government has linked several unlicensed mining operations to armed groups in the North-West and North-Central regions, where gold has become a source of illicit financing for bandits.
A 2023 NEITI audit also showed that over 80 per cent of mining activities in Nigeria were conducted informally, without licenses or environmental oversight.
In September 2024, the Ministry of Solid Minerals Development revoked over 900 dormant licences and announced plans for a national gold reserve policy. But enforcement remains difficult, with weak surveillance, limited manpower, and overlapping regulatory mandates.
According to Uzodimma, the expanded mandate aims to integrate the fight against illegal mining into the broader national resource protection framework previously used in the oil sector.
“We have done well,” he claimed, adding, “Among other things, we recommended that NNPC, working with security agencies and their consultants, should strengthen security in all the creeks and extend coverage to offshore regions. That will help in curtailing and supervising illegal entries and exits of vessels into our export terminals. This same spirit will now guide our solid minerals sector.”
The committee is expected to submit its first progress report on the expanded mandate at the next NEC meeting in November.
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