Stop gas flaring, perpetuating illegality for petro-naira
Until recently, two of the fiscal dispensations that mirrored Nigeria’s penchant for profligacy and waste were the fuel subsidy regime and the flaring of natural gas. While the subsidy regime was touted as offering relief to the masses, even as serving as a major drain pipe on the economy, gas flaring is ‘justified’ as a […]
Nigeria, plagued by fiscal excess and waste, continues to grapple with two significant issues: the fuel subsidy regime and the flaring of natural gas. While the subsidy regime aimed to benefit the masses, it also served as a significant drain on the economy. In contrast, gas flaring, though justified as a necessary pain during crude oil production, has persisted despite the termination of the subsidy regime.
Gas flaring generates substantial financial losses, estimated at $5.5 billion (approximately N8.7 trillion) over a five-year period from 2021 to 2025. Furthermore, the financial implications of gas flaring extend to critical sectors such as the economy and health. Unlike the fuel subsidy regime, which offered some benefits like cheaper petroleum products, gas flaring is officially illegal, attracts fines, and has detrimental environmental impacts.
Companies responsible for gas flaring are permitted to pay fines and continue operations, ultimately serving the interests of oil-producing companies rather than the nation. President Bola Tinubu's recent directive to Nigeria Liquefied Natural Gas Limited (NLNG) to deepen the domestic utilization of the country's gas resources, aiming to reduce the energy burden on citizens and enhance the value of Nigeria's energy resources, raises questions about the compatibility of gas flaring with current energy management circumstances. The answer is a resounding no; gas flaring must cease immediately.
Written by urgent.news from Daily Trust's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
