Nigeria has issued permits for gas flare utilisation projects under its Gas Flare Commercialisation Programme, signalling a renewed push to attract up to $2 billion in investment while addressing long-standing inefficiencies in the country’s energy sector.
The approvals are designed to enable the capture and commercial use of gas that is currently flared during oil production.
By converting this gas into usable products such as electricity and liquefied petroleum gas, the government aims to improve energy availability, deepen private-sector participation, and reduce waste across the upstream oil and gas value chain.
Officials involved in the programme indicated that the permitted projects have the potential to deliver significant power generation capacity, contributing to Nigeria’s broader goal of expanding electricity supply and supporting industrial growth.
Gas flare utilisation is increasingly viewed as a cost-effective pathway to unlock additional energy resources without the need for new large-scale gas discoveries.
Beyond power generation, the initiative is positioned as an investment catalyst. The structured permitting framework is intended to provide clarity and certainty for investors, encouraging domestic and foreign capital to flow into gas processing, power infrastructure, and associated logistics.
The government has consistently highlighted gas as a transition fuel capable of supporting economic growth while complementing longer-term energy diversification plans.
The programme also carries environmental and social implications. Reducing gas flaring is expected to lower carbon emissions and improve environmental outcomes in oil-producing regions.
In addition, project development and operations are anticipated to generate employment opportunities and stimulate local economic activity.
Energy analysts note that the success of the initiative will depend on execution, infrastructure readiness, and regulatory consistency. Effective coordination between project developers, oil producers, and regulators will be critical to ensuring that permitted projects move from approval to commercial operation within realistic timelines.
By issuing the gas flare project permits, Nigeria reinforces its commitment to monetising stranded gas resources, strengthening energy security, and attracting investment into value-adding segments of the energy sector.
The move positions gas flare commercialisation as a central component of the country’s strategy to drive growth, improve sustainability, and enhance the efficiency of its hydrocarbon industry.