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From Adanna Nnamani, Abuja
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned companies awarded gas flare sites under the Nigerian Gas Flare Commercialisation Programme (NGFCP) that their permits could be revoked if they fail to put the sites to use.
The warning highlights the Federal Government’s determination to move the gas flare commercialisation programme beyond the award of permits and ensure that investors actually develop projects capable of capturing and commercialising gas that is currently being flared.
The Commission Chief Executive, Mrs. Oritsemeyiwa Eyesan, disclosed this during a working visit to the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, in Abuja on Tuesday, September 8, 2026.
During the meeting, Eyesan presented an update on the implementation of the NGFCP and discussed efforts by the commission to ensure that the programme achieves its objectives.
Under the programme, investors are awarded flare gas sites where they are expected to develop projects for the recovery and utilisation of associated gas that would otherwise be burnt off at oil production facilities.
Eyesan said awardees could not be allowed to hold on to flare gas sites without making progress on the projects for which the permits were granted. She warned that failure to utilise the awarded sites in line with the conditions of the permits could lead to regulatory action, including revocation.
The move is expected to put pressure on investors to accelerate the development of their projects and demonstrate tangible progress in converting flare gas into commercially useful products.
Gas flaring has remained a longstanding challenge in Nigeria’s oil and gas industry. Large volumes of associated gas have historically been burnt during crude oil production because of inadequate infrastructure and limited facilities for gathering, processing and transporting the gas. Apart from representing a loss of valuable energy resources, gas flaring has been linked to environmental pollution and its impact on communities in oil-producing areas.
The NGFCP was therefore introduced to encourage private investment in the capture and commercialisation of flare gas, while helping Nigeria reduce routine gas flaring.
The programme is expected to support the development of projects covering areas such as gas processing, liquefied petroleum gas, compressed natural gas, power generation and other industrial applications.
For the Federal Government, successful implementation of the programme could help Nigeria unlock more value from its huge natural gas reserves, improve energy supply and create new investment and employment opportunities.
The NUPRC has consequently been increasing its focus on monitoring compliance by companies operating in the upstream oil and gas sector, particularly as the government seeks to maximise revenue and reduce waste in the industry.
The commission’s latest warning also signals that the era of securing flare gas opportunities without moving quickly to project execution may be coming to an end.
With the government seeking to position natural gas as a major driver of Nigeria’s industrial and energy transition, regulators are expected to place greater emphasis on actual investment, project delivery and commercial utilisation of the resource.
The NUPRC said continued monitoring would be critical to ensuring that beneficiaries of the flare gas programme meet their obligations and that the country ultimately derives the economic and environmental benefits expected from the initiative.
