Gas Flaring: NUPRC Warns Awardees Face Revocation If Permit Is Not Used

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned beneficiaries of flare gas sites that their awards could be revoked if they fail to demonstrate meaningful progress in utilising the sites.

The Commission Chief Executive, Mrs Oritsemeyiwa Eyesan, issued the warning during a working visit to the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, in Abuja on Tuesday, September 8, 2026.

Eyesan, who presented an update on the Nigerian Gas Flare Commercialisation Programme (NGFCP), said the Commission conducts an assessment one year after an award is granted to determine the level of progress recorded by beneficiaries.

“One year after an award has been granted, the Commission conducts an evaluation to determine whether there has been considerable progress,” Eyesan said.

“Where there is insufficient progress, the Commission will take appropriate regulatory action, including revocation of the award where necessary,” she added.

She said the NGFCP had continued to make significant progress despite initial resistance from some operators.

According to Eyesan, 43 flare gas sites were initially identified for award, with 27 sites already successfully awarded and implementation ongoing.

She also highlighted Nigeria’s vast gas resources, noting that the country currently has more than 215 trillion cubic feet (TCF) of proven gas reserves, while its estimated total reserve base stands at about 600 TCF.

“These resources provide a strong foundation for power generation, industrialisation, exports and broader economic development,” she said.

On host community development, Eyesan said the Petroleum Industry Act established the Host Community Development Trust framework to address longstanding concerns in oil-producing communities and promote sustainable utilisation of petroleum resources.

She said available data showed that implementation of the trusts had contributed to reductions in oil theft and oil spills while improving relationships between operators and host communities.

“To date, 173 Host Community Development Trusts have been incorporated, 147 have been funded, over 1,001 projects are currently ongoing, while more than 200 projects have been successfully commissioned across host communities,” she said.

In his remarks, Ekpo called for more deliberate and aggressive implementation of the country’s gas commercialisation programme to enable Nigeria to meet 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 utilization,” the minister said.

The NGFCP is part of the Federal Government’s efforts to commercialise flare gas, reduce routine gas flaring and maximise the economic value of Nigeria’s natural gas resources.