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The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has granted permits to 28 companies under the Nigerian Flare Gas Commercialisation Programme (NFGCP), marking a significant milestone in the country’s drive to eliminate routine gas flaring, cut carbon emissions, and create new economic opportunities across the energy value chain.
The permits were formally presented at a ceremony in Abuja, where the Commission Chief Executive described the development as a strategic step in Nigeria’s energy transition. The beneficiaries comprise a diverse group of energy, engineering, and gas-focused firms that satisfied the regulatory, technical, and commercial requirements to harness and commercialise flare gas that has long been wasted.
Reintroduced in 2022, the NFGCP aims to end routine gas flaring by assigning flare sites to qualified third-party operators. The programme enables the capture and conversion of flare gas into electricity, liquefied petroleum gas, fertiliser feedstock, petrochemicals, and industrial fuel—transforming an environmental challenge into an economic asset.
According to the Commission, the permits emerged from the 2020–2021 bid round following a rigorous and transparent selection process. Of about 300 initial expressions of interest, 139 companies advanced to the request-for-proposal stage, resulting in 42 successful bidders being awarded 49 flare sites. So far, 28 companies have finalised all required commercial agreements, including connection, milestone development, and gas sales agreements, making them eligible to receive permits.
The Commission noted that the approved companies demonstrated strong operational capacity, financial readiness, and technological expertise. It added that the redesigned programme has enhanced commercial viability and regulatory clarity, particularly after disruptions caused by the COVID-19 pandemic and the implementation of the Petroleum Industry Act.
The expected environmental and economic benefits are substantial. An estimated 250 to 300 million standard cubic feet of gas flared daily is projected to be captured and commercialised, potentially reducing Nigeria’s carbon dioxide emissions by about six million tonnes annually and attracting up to two billion dollars in new investment.
The programme is also expected to deliver broad-based economic benefits. More than 100,000 direct and indirect jobs are projected to be created, alongside an annual addition of about 170,000 metric tonnes of LPG. Improved access to cleaner energy could reach approximately 1.4 million households, while nearly three gigawatts of power-generation capacity may be unlocked, supporting MSMEs across the gas, power, manufacturing, and logistics sectors.
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The Commission acknowledged the contributions of development partners, including multilateral institutions, technical advisers, and financial organisations, whose support strengthened the programme’s design and implementation. Emphasising that permit issuance marks the start rather than the end of the process, the regulator urged beneficiaries to accelerate engineering, construction, financing, and commissioning activities. The Commission reaffirmed its commitment to sustained regulatory support, transparency, and efficiency, stressing that disciplined execution will be crucial to translating the flare gas programme into tangible economic, environmental, and social benefits for Nigeria.
