– Advertisement –
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued permits to 28 companies under the Nigerian Flare Gas Commercialisation Programme (NGFCP), marking a significant step to end routine gas flaring and advance climate commitments.
Speaking on Friday, December 12, 2025, at the permit issuance ceremony in Abuja, the Commission Chief Executive, Mr. Gbenga Komolafe, described the development as a strategic point in Nigeria’s energy transition journey.
NGFCP, re-inaugurated in 2022, aims to eliminate routine flaring by allocating flare sites to qualified third-party companies.
This gives the companies the capacity to commercialise gas for power generation, petrochemicals, fertiliser production, Liquefied Petroleum Gas (LPG) supply, and industrial use.
Komolafe said the NGFCP remained one of Nigeria’s most important climate action initiatives, designed to convert wasted flare gas into economic value while reducing environmental impact.
He said the permits issued under the 2020–2021 flare gas commercialisation bid round signified the shift from decades of operational challenges to a commercially driven model that would enhance energy security and improve industry efficiency.
“From 300 initial expressions of interest, 139 applicants qualified for the RFP stage.
“Following a competitive and transparent evaluation process, 42 successful bidders were awarded 49 flare sites, an achievement widely recognised for its integrity and rigour.
“Today, we are pleased to announce that 28 awardees have fully executed the required suite of commercial agreements, which include the Connection Agreements, Milestone Development Agreements, and Gas Sales Agreements; and now qualify to receive the Permit to Access Flare Gas.
“These entities represent a strong blend of operational capability, financial readiness, and technological competence,” Komolafe said.
He stated that the redesigned programme had strengthened commercial viability and regulatory consistency, following disruptions caused by COVID-19 and the implementation of the Petroleum Industry Act (PIA).
Highlighting the expected impact of the programme, Komolafe stated that between 250–300 million standard cubic feet of gas currently flared daily will be captured and commercialised.
“Nigeria will cut an estimated six million tonnes of Carbon Dioxide (CO₂) emissions annually, while up to two billion dollars in new investments is anticipated.
“More than 100,000 jobs (direct and indirect) are expected to be created and about 170,000 metric tonnes of LPG will be added annually, providing clean energy access to 1.4 million households.
“Nearly three gigawatts of power-generation potential would be unlocked,” the CCE said.
He also acknowledged the support of development partners including the World Bank, Power Africa, USAID, the U.S. Department of Energy, KPMG, and several financial institutions for their technical, commercial, and capacity-building contributions.
Komolafe emphasised that the issuance of permits marks the beginning and not the end of project execution.
He urged the awardees to accelerate work on engineering, construction, financing, and commissioning, assuring them of continuous regulatory support.
“The value of this programme will be realised only through disciplined project delivery,” he said.
“Together, we will continue to advance Nigeria’s upstream petroleum sector towards greater transparency, efficiency, sustainability, and global competitiveness,” he said.
By Emmanuella Anokam
