Nigeria reportedly lost N340.87 billion to gas flaring in the first quarter of 2024, as oil and gas firms operating in the country’s oil and gas sector flared 83.9 billion standard cubic feet (BSCF) of gas in three months (January and March 2024), according to latest data released by the National Oil Spill Detection and Response Agency (NOSDRA).

In its report for the period, NOSDRA noted that the amount lost to gas flaring was 10 percent higher than the $266.9 million, about N309.871 billion, lost in 2023.

According to the environmental watchdog, the volume of gas flared in the first quarter of 2024 emitted 4.5 million tonnes of carbon dioxide into the atmosphere and was capable of generating 8,400 gigawatts hour of electricity, while the offending companies were liable for the payment of fines totalling $167.7 million, an equivalent of N194.699 billion.

In comparison, NOSDRA noted that between January and March 2023, the oil firms flared 76.3 billion SCF of gas, which was valued at $266.9 million (N309.871 billion); was capable of generating 7,600 gigawatts-hour (GwH)of electricity; contributed 4.1 million tonnes of carbon dioxide emission, with the firms liable for penalties of $152.5 million, an equivalent of N177.053 billion.

This was even as power generation is expected to increase by 500 megawatts (MW) in the second quarter of 2024, driven by new power plants and rehabilitated facilities.

Specifically, thermal power generation is expected to remain dominant, but renewable energy sources like solar and wind are expected to gain traction; while transmission and distribution constraints are expected to persist, affecting power availability and reliability.

Furthermore, giving a breakdown of gas flared by production segment, the environmental regulatory agency stated that oil and gas firms operating in the country’s onshore oil space flared 42.5 billion SCF of gas in the first three months of 2024, accounting for 50.72 percent of total gas flared.

NOSDRA added that the gas flared onshore was valued at $148.9 million, about N172.873 billion, with penalties payable of $85.1 million, an equivalent of N98.8 billion; while it contributed 2.3 million tonnes of carbon dioxide to the atmosphere and had the potential to generate 4,300 GwH of electricity.

In the same period in 2023, companies operating onshore, caused the country a loss of $130 million (N150.93 billion), from the flaring of 37.1 billion SCF of gas, which has power generating potential of 3,700 GwH and contributed two million tonnes of carbon dioxide emissions, while penalties payable by the companies stood at $74.3 million (N86.262 billion).

On the other hand, companies operating offshore flared gas valued at $144.7 million, accounting for 49.28 per cent of total gas flared in the first three months of 2024.

Specifically, the companies flared 41.3 billion SCF of gas; 5.63 percent higher than the 39.1 billion SCF flared in the same period in 2023; while the quantity flared elicited penalties of $82.7 million, carbon dioxide emission of 2.2 million tonnes and had power generation potential of 4,100 GwH.

Comparatively, in the same period in 2023, offshore companies flared 39.1 billion SCF of gas valued at $136.9 million, with power generation potential of 3,900; carbon dioxide emission of 2.1 million tonnes and penalties payable of $78.2 million.

Some of the offending companies, according to NOSDRA include Shell Petroleum, Development Company (SPDC), Nigerian Petroleum Development Company (NPDC), Chevron Nigeria, Mobil Oil, Elf Petroleum Nigeria, Nigeria Agip Oil Company (NAOC), Addax Petroleum, Texaco Overseas (Nigeria), Esso Exploration and Production Nigeria, Allied Energy Resources, Ultramar Petroleum, Atlas Petroleum; Cromwell and South Atlantic Petroleum, among others.

These companies flared gas from Oil Mining Leases (OML) 04, 05, 11, 13, 14, 17, 18, 22, 28, 23, 24, 38, 40, 42, 43, 72, 49, 54, 90, 95, 67, 70, 104, 59, 99, 100, 101, 102 and Oil Prospecting Licences 222, 3.

Nigeria secured N1.257 trillion from the export of natural gas and other gas products in the fourth quarter of 2023, according to data released by the National Bureau of Statistics, NBS.

The NBS, in its Foreign Trade Report for the Fourth Quarter of 2023, stated that the amount earned from gas export in the period under review was 78.88 per cent higher than the N704.878 billion recorded from gas exports in the same period in 2022.

According to the NBS, gas exports accounted for 9.9 percent of total exports in the fourth quarter of 2023, compared with 11.08 per cent in the same period in 2022.

Giving a breakdown of gas exports in 2023, the NBS reported that natural gas export stood at N1.02 trillion, other petroleum gases export stood at N150.662 billion, while the country earned N90.705 billion from liquefied petroleum gas export, accounting for eight per cent, 1.19 per cent and 0.71 per cent of total exports, respectively.

Specifically, natural gas, other petroleum gas and liquefied petroleum gas exports ranked second, fourth and seventh most exported commodities in the period under review.

In comparison, in the fourth quarter of 2022, the country only exported natural gas, valued at N704.878 billion, ranking the second most exported commodity and accounting for 11.08 per cent of total export in the fourth quarter of 2022.

In its analysis of exports in the fourth quarter of 2024, the NBS said, “Further analysis on fourth-quarter trade by partners shows that the top five export destinations were the Netherlands with N1.910 trillion or 15.05 percent, India with N1.101 trillion or 8.68 per cent, Spain with N1.030 trillion or 8.11 percent, Canada with N907.64 billion or 7.15 percent, France with N799.77 billion or 6.30 percent of total exports.

“Altogether, exports to the top five countries amounted to 45.29 percent of the total value of exports. The largest exported product in the fourth quarter of 2023 was ‘Petroleum oils and oils obtained from bituminous minerals, crude’ valued at N10.311 trillion representing 81.23 percent, this was followed by ‘Natural gas,’ with N1,015.84 billion accounting for 8.0 percent and ‘Urea, whether or not in aqueous solution’ with N251.90 billion or 1.98 per cent of total exports.”

In general, the NBS said, “In the fourth quarter of 2023, Nigeria’s total trade stood at N26.802 trillion. Exports were valued at N12.694 trillion while imports amounted to N14.108 trillion. On an annual basis, total trade was N71.880 trillion, of which imports amounted to N35.918 trillion, and exports were recorded at N35.962 trillion.

The Nigerian Electricity Regulatory Commission (NERC) has approved a downward review of electricity tariff for Band ‘A’ customers from N225/kWh to N206.80/kwh.

Under the approved review, Band ‘A’ customers who were previously charged N225/Kwh are now to pay N206.80/kwh.

The band’s customers are those who enjoy a daily supply of a minimum of 20 hours.

The review of the tariff was announced in Abuja on Monday by a notice issued by the management of Abuja Electricity Distribution Company (AEDC).

The notice read, ’’ We are pleased to share with you the revised tariff for our Band ‘A’ feeders,  which will decrease from N225/kwh  to N206.80 effective May 6.

“We assure customers on our Band ‘A’ feeders of continued availability of electricity supply for 20-24 hours daily.

“Please note that the tariffs for Band B, C D and E remain unaffected. ‘’