The Federal Government recorded a revenue shortfall of N13.33 billion in January and February 2023 from gas flaring penalties issued to oil and gas firms.
Earlier, the government had announced fines amounting to $49 million (N22 billion) for onshore oil and gas firms that flared 24 billion Standard Cubic Feet of gas during the stated period.
However, data from the Central Bank of Nigeria’s quarterly statistical bulletin showed that the government earned only N8.67 billion during the same months, leaving a shortfall of N13.33 billion.
Gas flaring has been a longstanding issue in Nigeria, with the government striving to promote gas monetization over flaring.
Experts suggest that the government may increase gas flare penalties in the future to align with its commitment to the United Nations’ net-zero goals by 2060.
Opinion: The revenue shortfall from gas flaring penalties highlights the ongoing challenge of enforcing environmental regulations and reducing harmful practices in the oil and gas industry. Gas flaring not only contributes to environmental degradation and health issues in oil-producing areas but also results in significant economic losses for the government. As Nigeria moves towards its commitment to achieve net-zero goals, stricter penalties for gas flaring could be a crucial step in curbing the practice and encouraging the monetization of gas resources. It’s essential for the government to take proactive measures to address this issue, promote sustainable practices, and ensure that companies comply with environmental regulations to protect both the environment and the country’s revenue streams.