The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned beneficiaries of flare gas sites that their awards could be revoked if they failed to make significant progress in utilising the sites.
The Commission Chief Executive, Mrs. Oritsemeyiwa Eyesan, issued the warning on Tuesday in Abuja while presenting an update on the Nigerian Gas Flare Commercialisation Programme (NGFCP) during a working visit to the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo.
Eyesan said the NUPRC would not allow awarded flare gas sites to remain idle, stressing that beneficiaries would be subjected to a performance evaluation one year after receiving their awards.
“One year after an award has been granted, the Commission conducts an evaluation to determine whether there has been considerable progress,” Eyesan said.
She warned that beneficiaries who fail to demonstrate sufficient progress would face regulatory sanctions, including the possible revocation of their awards.
“Where there is insufficient progress, the Commission will take appropriate regulatory action, including revocation of the award where necessary,” she added.
The NUPRC boss said the NGFCP had continued to make significant progress despite initial resistance from some operators.
She disclosed that 43 flare gas sites were initially identified for award, with 27 sites successfully awarded so far and implementation efforts currently ongoing.
Eyesan said Nigeria’s vast gas reserves provide the country with a major opportunity to transform its energy sector and accelerate industrial and economic growth.
According to her, Nigeria has more than 215 trillion cubic feet (TCF) of proven gas reserves, while the country’s estimated total reserve base stands at about 600 TCF.
She said the resources could provide a strong foundation for power generation, industrialisation, exports and broader economic development if effectively harnessed.
On the implementation of the Host Community Development Trust framework under the Petroleum Industry Act, Eyesan disclosed that 173 trusts had so far been incorporated, with 147 funded.
She added that more than 1,001 projects were currently ongoing across host communities, while over 200 projects had been successfully commissioned.
According to the NUPRC chief, the implementation of the trusts had also contributed to significant reductions in oil theft and oil spills while improving relationships between petroleum operators and host communities.
Speaking at the meeting, Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, called for a more deliberate and aggressive implementation of the country’s gas commercialisation programme.
He said this was critical to achieving Nigeria’s 2030 target of eliminating routine gas flaring.
Ekpo stressed that the government must move beyond allowing gas resources to contribute to environmental pollution and instead convert them into valuable products and services.
“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,” the minister said.
The Federal Government’s renewed push to commercialise flare gas is aimed at turning a long-standing environmental challenge into an economic opportunity while supporting energy security, industrialisation and investment in Nigeria’s gas sector.
