The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned that companies awarded flare gas sites under the Nigerian Gas Flare Commercialisation Programme (NGFCP) risk losing their permits if they fail to make meaningful progress in developing the sites.
The Commission Chief Executive, Mrs Oritsemeyiwa Eyesan, issued the warning on Tuesday in Abuja during a working visit to the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo.
Giving an update on the NGFCP, Eyesan said the Commission would not allow awarded flare sites to remain dormant indefinitely.
“One year after an award has been granted, the Commission conducts an evaluation to determine whether there has been considerable progress,” she said.
“Where there is insufficient progress, the Commission will take appropriate regulatory action, including revocation of the award where necessary.”
The warning comes as the government intensifies efforts to end routine gas flaring and unlock the commercial value of gas currently being wasted through flaring.
According to Eyesan, 43 flare gas sites were initially identified for award under the programme, while 27 sites have so far been successfully awarded, with implementation ongoing.
She said the programme had continued to make progress despite initial resistance from some oil and gas operators.
Eyesan also highlighted Nigeria’s vast gas potential, putting the country’s proven gas reserves at more than 215 trillion cubic feet (TCF), with an estimated total reserve base of about 600 TCF.
“These resources provide a strong foundation for power generation, industrialisation, exports and broader economic development,” she said.
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Host Communities
The NUPRC boss also disclosed that the implementation of the Host Community Development Trusts established under the Petroleum Industry Act (PIA) was recording progress across oil-producing communities.
She said the framework was designed to address longstanding grievances in host communities and promote sustainable development through direct participation in petroleum operations and projects.
According to Eyesan, 173 Host Community Development Trusts have so far been incorporated, while 147 have received funding.
She added that more than 1,001 projects were currently ongoing, with over 200 projects already completed and commissioned.
Eyesan said available data showed that the initiative had contributed to reductions in oil theft and oil spills while improving relations between operators and their host communities.
Push for 2030 Flare-Out Target
The Minister of State for Petroleum Resources (Gas), Ekpo, called for a more aggressive implementation of the gas commercialisation programme, stressing that Nigeria must translate its huge gas reserves into economic value.
He said the government must remain focused on achieving its 2030 target of eliminating routine gas flaring.
“The core objective is to add value to our gas resources by converting them into critical products and services. We must move away from environmental pollution and toward productive resource utilisation,” Ekpo said.
The latest NUPRC warning signals a tougher regulatory approach to the NGFCP, as the government seeks to ensure that flare gas awards result in actual investment and commercialisation rather than leaving awarded sites inactive.
Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X