The recent revelation that Nigeria lost $16 trillion to gas flaring between 2012 and 2022 underscores the country’s deep-rooted culture of waste and institutional failure. According to the Energy Institute’s 72nd edition of the ‘Statistical Review of World Energy 2023,’ Africa’s largest economy forfeited trillions of dollars due to natural gas flaring by oil companies, despite a national mandate to end the practice. As President Bola Tinubu has retained the oil ministry portfolio, there is a pressing need for him to decisively put an end to this wasteful and environmentally damaging enterprise.

Gas flaring, the practice of burning off natural gas during oil extraction, is not only a waste of energy but also causes environmental damage and leads to significant economic losses. Despite possessing over 200 trillion cubic feet of gas reserves—the largest in Africa—Nigeria continues to burn a large portion of this valuable resource. The flaring persists despite the country’s urgent need for revenue, infrastructure development, and job creation.

Nigeria’s financial situation is dire, with a foreign debt of $43.16 billion by the second quarter of 2023, and over 90 percent of public revenue being spent on debt servicing. At the same time, the country faces an infrastructure gap requiring $3 trillion to close over the next 30 years, as well as an unemployment rate of 33.3 percent. In light of these challenges, it is unthinkable that Nigeria would continue to burn away its natural gas, which could be used for power generation, domestic use, and export revenue.

Modern technology provides numerous alternatives to flaring, enabling the capture of gas for productive use. Countries around the world are leveraging such technology to boost their economies. It is therefore imperative that the Nigerian government fully enforces the Nigerian Oil and Gas Industry Content Development Act, which penalizes gas flaring and mandates oil companies to stop the practice.

The scale of Nigeria’s gas flaring is staggering. The Energy Institute’s report highlighted that Nigerian oil companies flared as much as 12.9 billion cubic meters (bcm) of gas in 2012 alone, with only a gradual reduction in subsequent years. Despite the drop, flaring in 2022 still resulted in enormous losses. At $183 million per 1.0 bcm of gas, Nigeria lost an estimated $16 trillion over the 10-year period due to flaring. Experts estimate that the gas wasted in 2022 could have generated 14,700 gigawatt hours of electricity, alleviating Nigeria’s ongoing power shortages.

The environmental and health impacts of gas flaring are also severe. Flaring releases pollutants like sulfur dioxide and nitrogen oxides, contributing to air pollution and causing respiratory and cardiovascular diseases in local communities. Moreover, the environmental damage affects ecosystems, undermining agriculture and livelihoods in oil-producing regions.

Despite multiple government initiatives aimed at curbing gas flaring, progress has been slow. While the Nigerian Gas Flare Commercialisation Programme brought some indigenous companies into the effort to manage flare sites, bureaucratic delays have hampered real progress. As a result, Nigeria remains one of the top 10 countries responsible for 75 percent of global gas flaring, alongside Russia, Iraq, and the United States.

To address these issues, Tinubu must revive the Nigeria Gas Master Plan, which failed to meet its 2008 target of ending gas flaring. The new goal of eliminating flaring by 2030 must be actively pursued and achieved. This will require not only political will but also concrete measures to strengthen regulatory frameworks and hold oil companies accountable. A carrot-and-stick approach could include offering tax incentives for companies that capture and utilize natural gas while imposing heavy penalties on those that continue to flare.

Nigeria must also leverage its membership in the World Bank-led Global Gas Flaring Reduction Partnership. Investments in modern technology and the repurposing of gas flaring sites for productive use could help provide jobs, address gas shortages, and generate much-needed revenue. Given the increasing demand for gas in Europe and Nigeria’s growing need for domestic cooking gas, now is the perfect time to stop flaring and redirect gas for productive purposes.

Finally, the government must prioritize the health of its citizens. The pollutants emitted from gas flaring have caused long-term health issues for those living in oil-producing areas, and the government has a duty to protect its people. By enforcing stricter regulations on oil companies and ensuring that flaring is eliminated, Nigeria can protect the health of its citizens while also boosting its economy.

In conclusion, President Tinubu must take immediate and decisive action to stop gas flaring. The financial, environmental, and health costs of this wasteful practice are too high to ignore. Nigeria should aim for a future where its vast natural gas resources are fully utilized for economic growth, job creation, and improved living standards for all its citizens.