The Federal Government has projected up to $2 billion in new investments from Nigeria’s Gas Flare Commercialisation Programme (NGFCP), as regulators move closer to turning wasted flare gas into a major economic and environmental opportunity.
This follows the issuance of permits to access flare gas sites to 28 successful bidders by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Friday, marking a critical milestone in the programme’s execution.
Speaking at the event in Abuja, Gbenga Komolafe, Chief Executive of the NUPRC, said allocating flare sites to qualified third-party developers has activated a commercially viable framework that converts gas flaring from an environmental liability into a source of value, investment, and jobs.
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According to Komolafe, the programme aligns directly with Nigeria’s Energy Transition Plan, which outlines the country’s pathway toward a cleaner, more resilient, and diversified energy system.
“The NGFCP is not just a policy initiative; it is a key pillar in Nigeria’s drive to end routine gas flaring, cut emissions, and strengthen our credibility in global energy transition commitments,” he said.
He explained that the programme delivers multiple benefits to oil and gas producers, including the elimination of flare penalties, reduced environmental and operational risks, improved ESG performance, enhanced investor appeal, and alignment with the federal government’s decarbonisation agenda.
Komolafe noted that following disruptions caused by COVID-19 and the enactment of the Petroleum Industry Act (PIA), the NGFCP was restructured to improve commercial viability and regulatory clarity. Out of more than 300 expressions of interest, 139 companies qualified for the request-for-proposal stage, leading to the award of 49 flare sites to 42 bidders after a transparent and competitive process.
He revealed that 28 awardees have now completed all required commercial, milestone development, and gas sales agreements, making them eligible to receive permits to access flare gas.
“These companies represent a strong mix of financial capacity, technical expertise, and operational readiness,” Komolafe said, while urging the awardees to move swiftly into engineering, construction, financing, and commissioning phases. He assured them of full regulatory support from the commission.
The NUPRC chief highlighted that gas flare capture under the programme will support power generation, LPG penetration, petrochemicals, fertiliser production, and feedstock supply to local industries, while also strengthening host community relations, boosting local content, and creating jobs.
In addition to commercial returns, investors are expected to benefit from diversified revenue streams, carbon credit earnings, and long-term gas monetisation opportunities, while improving their sustainability credentials.
Komolafe disclosed that between 250 and 300 million standard cubic feet of gas currently flared will be captured and commercialised annually, eliminating about 6 million tonnes of CO₂ emissions each year. The programme is projected to create over 100,000 direct and indirect jobs, produce around 170,000 metric tonnes of LPG annually, provide clean cooking energy to 1.4 million households, and unlock up to 3 gigawatts of power generation capacity.
He added that an NGFCP bidders’ forum and college has been established to support project delivery, knowledge sharing, and engagement with international financiers and technology partners.
Also speaking at the event, Kelechi Onyekachi Ofoegbu, Executive Commissioner for Corporate Services and Administration at the NUPRC, said the programme’s design combines market-driven incentives with strong environmental safeguards, ensuring flare gas is converted into economically valuable outputs such as power, LPG, petrochemicals, and industrial feedstock.
He stressed that the NGFCP is structured to attract competent investors capable of delivering real economic impact, while eliminating routine flaring, improving energy security, and accelerating the growth of gas-based industries.
“The relaunch of the NGFCP in 2022 marked a clear shift from legacy practices to a modern, commercially structured, and technology-driven regulatory framework,” Ofoegbu said, urging awardees to remain focused on timely implementation to ensure lasting environmental and socio-economic benefits for host communities.
He added that the programme reinforces Nigeria’s Energy Transition Plan by promoting cleaner fuels, reducing upstream emissions, improving ESG outcomes, and unlocking new opportunities for both local and international investors.
