FG eyes $2.5bn investment from gas flare commercialisation program

…says Nigeria rig count to reach 50 by end of 2025

The Nigerian government has said that the Nigeria Gas Flare Commercialisation Program (NGFCP), has the potential to unlock as much as $2.5 billion investments in the Nigerian oil and gas sector, thereby creating a boost for government revenues.

The NGFCP was launched as a strategic initiative by the Nigerian government with the primary goal of eliminating gas flaring through economically viable solutions, transforming a wasteful environmental challenge into a substantial economic opportunity.

The program is also being promoted as one of the critical pathways to achieving Net Zero Carbon Emission.

Gbenga Komolafe, Commission Chief Executive (CCE) of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) disclosed this in Abuja on Wednesday, at the going Nigerian International Energy Summit (NIES).

According to him, as countries shift focus toward a low carbon future, the commission is embedding sustainability measures including NGFCP, into the upstream operations to mitigate environmental risks and to protect communities.

He explained that in the short-term, the federal government have set new benchmarks for oil and gas production and significantly strengthening the nation’s energy security, with rig count expected to reach 50 by the end of 2025.

“In pursuit of our goal to reach 40 billion barrels of oil and 220 trillion cubic feet of gas, we have vigorously pursued strategies to stimulate exploration activities and accelerate development. As part of these efforts, the Commission successfully completed the 2022/2024 bid licensing round, and awarded twenty-seven (27) Petroleum Prospecting Licenses (PPLs) across various terrains.

“Efforts are also on for the 2025 bid round, embracing a new paradigm of annual licensing rounds.

“Our achievements speak for themselves: between 2023 and 2024, oil reserves increased by 1.43 percent, reaching 37.5 billion barrels, while gas reserves grew by 0.21 percent, reaching 209.26 trillion cubic feet. Rig count increased from 8 in 2021 to 40 in 2025 and is projected to reach 50 before year end while production increased by 70 percent from 1 million bopd in 2021 to the current production of circa 1.75 million bopd,” Komolafe said.

Read also: Advancing Nigeria’s gas flare commercialisation amidst global funding challenges

Speaking further, the CCE noted that Nigeria’s vast oil reserves present a remarkable opportunity for growth and economic transformation, stating that while the current production averages circa 1.75 million barrels per day, technical potential stands at 2.24 million barrels per day.

To bridge this gas, he explained that efforts were ongoing to promote actions aimed at improving transparency, driving collaboration with E&P companies, ensuring financial viability, fast-tracking field developments, adopting cutting-edge improved oil recovery technologies, reducing costs, eliminating entry barriers and optimizing production.

He said, “The potential for increased production is immense, and NUPRC is committed to unlocking every opportunity. Our efforts to reactivate shut-in wells and leverage low hanging
fruits opportunities will bring us closer to actualisation of the Project 1MMbopd additional production target recently launched by the Commission.

“We are steadily progressing actions on Advanced Cargo Declaration Solution and Engineering Audit of Upstream Measurement Equipment and Facilities as part of our non-kinetic approach to combat crude theft, eliminate revenue leakage and maximize value.”