Gas Flaring in Nigeria: Problems & Prospects

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Gas flaring is the process by which natural gas that comes with

extracting petroleum is burned off in the atmosphere. Alternative

means to gas flaring includes confining the gas to storage tanks for

resale, subterranean re-injection, etc. These other alternative means

are usually more costly than eliminating the gas immediately. Hence,

the practice of gas flaring is often done for economic reasons as the

oil producers do not have to stop pumping oil. This is in spite of the

potential hazards posed by gas flaring. Gas flaring has been a problem

in Nigeria since the commercial exploration of crude oil in 1958. The

exportation of oil accounts for more than half of the Nigerian

government’s revenue. The problem still persists despite the

official banning of gas flaring in Nigeria in 1984.









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Gas Flaring in Nigeria: Problems & Prospects







The problems of gas flaring in Nigeria are discussed below:





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The negative effects on agriculture ecosystem



Areas in Nigeria such as the Niger Delta where there is oil

exploration has been severely damaged due to gas flaring. Gas flaring

causes an increase in soil temperature which then negatively affects

crop yield and has rendered many lands in the region barren. Farmers

in the region complain that when they plant crops, it shoots up really

quickly but is often barren. What is more, the water bodies have been

contaminated and fish in the rivers are constantly destroyed, rainfall

in the area is also black and destroys many homes. There are also no

animals in the forests due to burning bushes which have forced most

animals to desert he forests. Hence, villagers in that area cannot

fish nor farm and have to look for other businesses as a means to

survive.



Health hazards



People residing in communities where gas flaring occurs in Nigeria

have their health affected. Exposure to air pollutants released by gas

flaring has been linked to diseases such as cancer, lung damage,

neurological and reproductive problems.



Security challenges



Due to various challenges mentioned above, there has been a rise in

insurgent groups and increased security instability in areas where gas

flaring occurs. Examples of this include terror groups such as

Movement for Emancipation of the Niger Delta (MEND) and Niger Delta

Avengers (NDA) who destroy oil infrastructure and kidnap expatriates

working with oil companies in a bid to put pressure on the government

to develop their region.







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Global warming



Gas flaring is a major contributor to global warming because of the

emission of millions of tons of carbon dioxide into the atmosphere.

The flared gas in Nigeria accounts for the emission of 16.5 million

tonnes of carbon dioxide.



Solutions and Prospects to Gas flaring in Nigeria



In order to eliminate and reduce the problems caused by gas flaring,

oil companies must clean up oil spills as much as possible. Oil

companies should also avoid oil spills so as to prevent damage to the

environment. The government should insist that oil and gas companies

make the necessary infrastructure available to be able to capture and

maximize their utilization.



Negligible penalties



A reason why gas flaring has not been curbed is due to not so costly

penalties placed on the practice. For example, the gas-flaring charges

imposed by the Associated Gas Reinjection Act (AGRA) on oil-producing

companies are relatively negligible. In addition to this, levies paid

by the oil companies under the AGRA are tax-deductible. This means

that oil-producing companies only need to deduct the levies for gas

flaring from their taxable income.



Implementation of policies



In a bid to curb the menace of gas flaring in Nigeria, the Nigerian

Gas Flare Commercialization Programme (NGFCP) was started. Under this

program, the Minister of Petroleum is authorized to impose terms and

conditions on any natural gas discovered in the public interest. The

Federal government has the right to take any associated gas that would

have been flared either free of charge or at an agreed cost.







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Under the NGFCP, the Federal government can grant licenses to third

parties so they can access and collect such gas from oil-producing

companies on behalf of the Federal government. These third parties are

the ones required to use the necessary technology to collect the gas

at the flare points.



The Nigerian Gas Flare Commercialization Programme (NGFCP) has huge

prospects if properly implemented. This includes the creation of

opportunities for many other organizations in the oil sector.



Investment opportunities



With the program, opportunities will be created for investors to play

an active role in Nigeria’s oil and gas market when gas that would

have been flared is used for other commercial purposes. Investors will

have some confidence in the system because the gas supply will be more

assured.



Improve fuel supply



With NGFCP, there would be improved fuel supply to power generating

companies in Nigeria that make use of gas. In Nigeria, power is

generated primarily with the use of gas. Also, the sector has had poor

output and delivery because of insufficient gas supplies. This

negatively affects investments in the power sector because gas and

power projects are not dependable in the country. The implementation

of the programme would also enable the Federal government to achieve

its goal of turning Nigeria into a gas-based industrial economy,



Implementation of Gas Flaring (Prohibition and Punishment) law



This law prohibits the flaring of gas on both onshore and offshore oil

fields. Non-compliance with the provisions could lead to the

forfeiture of a license or lease. When oil exploration and production

companies are made to participate in the programme, it will ensure

that the companies do not disobey the law.



The Nigerian Gas Flare Commercialization Programme would ensure that

the federal government fulfills its responsibilities to inhabitants of

the Niger Delta region, as it is only their rights. The cries of these

ones who have been clamouring for government intervention for years

will be heeded.







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The Nigerian Gas Flare Commercialization Programme would also ensure

the government attains its vision for zero gas flare by the year 2020.

The Federal government would be able to live up to its environmental

obligations under international agreements, for example, under the

Paris agreement where the goal is to reduce carbon emissions by about

13 million tons of carbon dioxide.













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