Nigeria’s oil and gas sector continues to grapple with rising emissions, posing significant challenges to the country’s environmental goals, despite recent initiatives aimed at reducing methane emissions.
A new report from the Natural Resource Governance Institute (NRGI) outlines the primary hurdles hindering effective methane reduction efforts, emphasizing data inaccuracies, regulatory gaps, and industry non-compliance.
Rising Methane Emissions Amid Expansion Plans
Between 1990 and 2020, Nigeria accounted for approximately 16 percent of total methane emissions in sub-Saharan Africa, with the energy sector—mainly the oil and gas industry—responsible for about 60 percent of these emissions.
Recent estimates from the International Energy Agency (IEA) reveal that methane emissions in Nigeria are not only rising but accelerating.
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For instance, emissions from incomplete gas flaring jumped by a staggering 107.9 percent, from 103.51 kilotons (kt) in 2022 to 215.22 kt in 2023. Additionally, fugitive emissions increased by 29 percent, underscoring the urgent need for effective mitigation strategies.
The sources of these emissions are varied. According to the report, venting in onshore and offshore fields, along with emissions from gas pipelines and Liquefied Natural Gas (LNG) facilities, constitutes 68 percent of total methane emissions. Incomplete gas flaring accounts for another 12 percent, while fugitive emissions contribute 19 percent.
The planned expansion of Nigeria’s gas utilisation and exploration activities threatens to exacerbate these emissions, particularly through leaks from aging and vulnerable infrastructure, which is often subject to vandalism and inadequate oversight.
Challenges in Data Accuracy and Transparency
One of the most significant barriers to effective methane reduction in Nigeria is the lack of reliable data. Inconsistent measurement methodologies and a heavy reliance on industry self-reporting have created substantial uncertainty about actual emissions levels. This has resulted in a ten-fold variance between the lowest and highest emissions estimates reported by government and independent sources.
This data deficiency prevents the Federal Ministry of Environment and the Department of Climate Change from establishing realistic reduction targets and accurately tracking progress. Investment in robust measurement and reporting systems is critical. Current systems often fail to consider regional differences and specific technological characteristics, leading to either significant under- or over-estimations of emissions.
Geographical challenges also hinder detection efforts, as many key oil and gas facilities are located in remote areas. Moreover, operators in Nigeria have been slow to adopt advanced leak detection technologies, further complicating the situation. The Nigerian Gas Flare Tracker (NGFT), which primarily monitors carbon monoxide emissions, is being updated to capture methane emissions, but gaps in local data remain.
Industry Compliance and Regulatory Weaknesses
Nigeria’s oil and gas companies have yet to fully commit to methane reduction, a situation exacerbated by weak enforcement of existing regulations. Current policies lack the necessary incentives to encourage operational transparency and effective emissions mitigation. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is urged to enhance policies such as the Gas Flaring, Venting, and Methane Emissions Regulations and to establish stronger enforcement mechanisms.
International oil companies (IOCs) operating in Nigeria face scrutiny regarding their compliance with global standards like the Oil and Gas Methane Partnership (OGMP 2.0). Many IOCs appear hesitant to invest in the infrastructure needed for maintenance and repairs, with some companies opting to divest rather than engage in proactive emissions management. The Nigerian National Petroleum Corporation Limited (NNPCL) has announced intentions to achieve net-zero carbon goals by implementing methane abatement strategies; however, its past disclosures on emissions have been insufficient.
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Untailored MRV Tools and Implementation Issues
The measurement, reporting, and verification (MRV) system enforced by the NUPRC largely relies on self-reporting supplemented by leak detection and repair (LDAR) technologies. However, without independent third-party verification, the credibility of the reported data remains questionable. The NUPRC is called upon to make emissions data publicly accessible to enhance stakeholder oversight.
The National Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is currently developing regulations to enforce an MRV system for midstream and downstream sectors, but it faces significant obstacles. These include inadequate technical capacity, limited financial resources, and a fragmented regulatory environment, which all hinder the development of a comprehensive MRV system.
Regulatory Gaps and Future Directions
Regulatory overlap among various agencies complicates efforts to monitor and mitigate methane emissions effectively. Current guidelines do not mandate that oil companies disaggregate greenhouse gas emissions by type and quantity, nor do they require independent third-party validation of reported methane emissions.
Strengthening penalties for gas flaring and enhancing the Nigerian Gas Flare Commercialisation Program (NGFCP) could incentivize oil and gas companies to reduce emissions. However, systemic challenges persist, and the program’s full potential has yet to be realized.
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Conclusion
The NRGI report underscores the urgent need for Nigeria to address the multifaceted challenges associated with methane emissions in its oil and gas sector. Without decisive action to enhance data accuracy, strengthen regulatory frameworks, and improve industry compliance, Nigeria risks falling short of its climate commitments. Collaboration among regulatory bodies, industry stakeholders, and civil society will be essential in fostering innovation and achieving sustainable emissions reduction in the face of escalating environmental challenges.
