The Programme Manager , National Gas Flare Commercialisation Programme (NGFCP ), Federal Ministry of Petroleum Resources , Justice Derefaka has disclosed that Nigeria loses approximately $ 10 billion of revenue through gas flaring, due to its inability to capture and commercialise flared gas in the country .
      He further stated that if flared gas is properly exploited , it has the potential to create 300, 000 jobs , produce 600 ,000 MT of LPG per year and generate 2 .5 GW of power from new and existing IPPs , as approximately 700 mmscf / d is flared at 178 flare sites in Nigeria .
Speaking at the Nigerian Norwegian Chamber of Commerce (NNCC) Q1 2018 Business Roundtable Seminar held recently in Lagos , on “ The Monetization of Gas: Perspectives and Opportunities in the Nigerian Gas Industry ” , Derefaka revealed that Nigeria currently utilises almost 700mmscf / d of gas for power production, which could be doubled by capturing and commercializing flared gas , adding that about $ 3 .5 billion worth of inward investments is required to achieve the country ’s flare gas commercialization targets by 2020.
Derefaka stated that a ‘ Flare Gas (Prevention of Waste and Pollution) Regulation 2018’ is being finalized and will be issued shortly to underpin the implementation of the NGFCP , as gas flare reduction is a priority in the suite of Federal Government programs for improving the environmental , health, social , economic and security problems in the Niger Delta region .
He stressed that the solution must not only benefit Niger Delta communities and positively contribute to the Nigerian economy, it must also present a bankable market opportunity for investors and lenders alike.
.     In a similar vein , Ian Brown- Peterside , the Managing Director , Midstream, Seven Energy , stressed that the productive utilization of the nation ’ s gas reserves is critical to Nigeria ’s future ; “ A robust and viable Gas - to - Power sector in Nigeria is critical to Nigeria ’s future economic growth , constant power supply will lead to growth across all sectors ” he said.
He further stressed that lack of capacity in power generation , compared to other countries, makes it very difficult to attract new investment and retain existing investment in the broader economy, noting that just 25 per cent of Nigeria ’ s circa 12,000 mega watt of installed generation capacity reaches the end user .
He added that current electricity consumption of 144 kwh per capita in Nigeria compared to the global average of 3104kwh is alarming , and wholly inadequate to support the economic development goals of the country .
.    According to Brown- Peterside , gas policy is not always clear and consistent; further sector challenges include commitment to payment terms in the gas to power business, noting that critical factors like co- operation and alignment between stakeholders , proper risk allocation across the chain to preserve investment , as well as clear fiscal incentives to unlock investment are required to enhance the potential and viability of gas to power.
John Chibueze , Partner at Adepetun Caxton - Martins Agbor & Segun (ACAS Law ), reviewed the efforts made by the government to date in boosting the exploration, development, production and sale of natural gas , but concluded that there remains a glaring lack of fiscal and regulatory cohesion to support the infrastructure investment required to significantly increase the country ’ s reserve production ratios.