Gas flare permit holders face revocation threat as NUPRC tightens compliance

Favour Ishember, Abuja

Companies awarded Nigerian gas flare sites risk losing their permits if they fail to put the facilities to productive use, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned.

The Commission Chief Executive, Mrs. Oritsemeyiwa Eyesan, issued the warning during a working visit to the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, in Abuja on Tuesday, September 8, 2026.

During the meeting, Eyesan presented an update on the Nigerian Gas Flare Commercialization Programme (NGFCP), outlining the progress recorded under the initiative and the regulatory measures available to the Commission.

She explained that the NUPRC conducts a performance review one year after each flare gas site is awarded to determine whether the recipient has made meaningful progress towards development and utilisation.

“One year after an award has been granted, the Commission conducts an evaluation to determine whether there has been considerable progress,” Eyesan said.

She added that awardees who fail to demonstrate adequate progress could face sanctions, including the cancellation of their permits.

“Where there is insufficient progress, the Commission will take appropriate regulatory action, including revocation of the award where necessary,” she said.

According to the NUPRC chief, the NGFCP has continued to advance despite the initial opposition encountered from some industry operators.

She disclosed that 43 flare gas sites were initially identified for allocation, with 27 sites already awarded and implementation activities currently underway.

Eyesan also highlighted Nigeria’s vast gas potential, noting that the country has more than 215 trillion cubic feet (TCF) of proven gas reserves and an estimated overall reserve base of approximately 600 TCF.

“These resources provide a strong foundation for power generation, industrialisation, exports and broader economic development,” she said.

On the development of host communities, Eyesan said the Petroleum Industry Act established the Host Community Development Trust framework to resolve longstanding grievances and promote the sustainable use of petroleum resources.

She stated that available records showed that the trusts had contributed to a notable decline in oil theft and spills while improving relations between oil companies and their host communities.

The NUPRC boss said the implementation of the framework had also produced measurable results across the country.

“To date, 173 Host Community Development Trusts have been incorporated, 147 have been funded, over 1,001 projects are currently ongoing, while more than 200 projects have been successfully commissioned across host communities,” she said.

In his response, Ekpo urged stakeholders to pursue a focused and more aggressive implementation of the country’s gas commercialisation agenda to enable Nigeria to meet its 2030 deadline for ending routine gas flaring.

“The core objective is to add value to our gas resources by converting them into critical products and services. We must move away from environmental pollution and toward productive resource utilization,” the minister said.

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