By Shedrack Onitsha,
Stakeholders in the oil and gas sectors have called on Federal Government of Nigeria check methane emissions in order to secure environmental, economic gains in a bid to capitalize on its gas resources for domestic use and exports.
This came as the outcome of a Multistakeholder Dialogue tagged; “Strengthening Methane Emissions Reduction Strategies In Nigeria’s Gas Expansion Plans, hosted by Natural Resource Governance Institute in partnership with the Centre for Journalism Innovation and Development and the Nigeria Extractive Industries Transparency Initiative, at Abuja on 23rd July 2024.
The Natural Resource Governance Institute (NRGI) has highlighted these emissions from processes such as incomplete gas flaring, direct methane release, and leaks pose significant threats to the country's economy, environment, and public health.
In a briefing titled Strengthening Methane Emissions Reduction in Nigeria’s Oil and Gas Sector, published today by NRGI, researchers stressed that curbing methane emissions is crucial not only for global climate goals but also as an economic necessity and a domestic priority for Nigeria. They called for coordinated efforts between the federal government and private stakeholders to establish a comprehensive methane emissions framework and boost investments in emission reduction technologies.
The European Union (EU), which accounted for 43 percent of Nigeria’s crude oil and 60 percent of its liquefied natural gas (LNG) exports in 2023, is already enforcing stricter methane emission regulations. Starting in 2027, EU importers will need to confirm that new oil and gas contracts comply with monitoring, reporting, and verification standards. By 2030, EU-bound shipments must adhere to methane intensity limits. Non-compliance with these rules could jeopardize Nigeria’s access to this vital market and impact its revenue.
“We are in a race against time, and we need all hands on deck,” said Tengi George-Ikoli, NRGI’s senior officer in Nigeria. “Nigeria has shown commitment to ambitious targets on methane reduction, but the urgency of the crisis demands that we close the gap between ambition and action. We acknowledge the progress made with the Nigeria Gas Flare Commercialization Program (NGFCP) licenses and urge for effective implementation of this program and other initiatives to support Nigeria’s climate commitments and the energy transition.”
Between 2010 and 2020, Nigeria contributed 16 percent of sub-Saharan Africa’s methane emissions. The International Energy Agency (IEA) estimates that in 2023, Nigeria could have generated approximately $350 million in revenue from abatement initiatives, such as capturing and reselling methane, while requiring an average annual investment of only $240 million in mitigation efforts.
George-Ikoli added, “Reducing methane emissions is not just about ticking climate boxes or maintaining market access for Nigerian crude oil and gas. It also presents an opportunity to unlock untapped potential within our natural resources. IEA’s estimates show that tackling methane challenges can be a win-win. Therefore, the federal government and relevant agencies, such as the National Council on Climate Change, the Federal Ministry of Petroleum Resources, and the Federal Ministry of Environment, must play their part. They should collaborate with the private sector and other stakeholders to develop clear strategies, expedite implementation, and ensure stronger enforcement to improve Nigeria’s methane reduction before it is too late.”
This urgent call to action underscores the need for Nigeria to address methane emissions proactively, ensuring that it remains competitive in international markets while protecting its natural environment and public health.
