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Chapter One Project

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0% found this document useful (0 votes)
5 views73 pages

Chapter One Project

Uploaded by

Ferguson Igwe
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

CHARACTERIZATION

CHAPTER ONE: GENERAL INTRODUCTION.

1.1 Background of the Study.

1.2 Statement of the Problem.

1.3 Aims and Objectives of Research.

1.4 Research Questions.

1.5 Significance of the Study.

1.6 Research Methodology.

1.7 Research Structure

1.8 Scope of the Study.

1.9 Limitation of the Study.

CHAPTER TWO: LITERATURE REVIEW

2.1 Introduction.

2.2 Conceptual Framework.

2.3 Theoretical Framework

2.4 Summary of Review


CHAPTER THREE: INTERNATIONAL LAWS, INSTITUTIONS AND POLICIES

DOMESTICATED IN NIGERIA FOR GAS FLARING.

3.1 The United Nations framework Convention on Climate Change (UNFCCC)

3.1.1 The Kyoto Protocol to the United Nations Framework Convention on Climate Change.

3.1.2 Clean Development Mechanism (CDM) in Nigeria.

3.2 International Institutions for Gas Flaring.

3.2.1 World Bank Group Force.

3.2.2 The Global Gas Flaring Reduction Initiative (GGFR) and Nigeria.

3.3 International Laws on Gas Flaring Domesticated in Nigeria.

3.3.1 The 1972 Stockholm Conference on Human Environment.

3.3.2 The Vienna Convention on the Protection of Ozone Layer 1988.

3.3.3 The United Nations Conference on Environment and Development (UNCED)

3.3.4 World Summit on Sustainable Development.

CHAPTER FOUR: APPRAISAL OF THE LEGAL, INSTITUTIONAL FRAMEWORK

AND NATIONAL POLICIES FOR GAS FLARING IN NIGERIA.

4.1 Historical view of Gas Flaring in Nigeria.


4.2 Regulatory Framework to Curb Gas Flaring in Nigeria.

4.2.1 The Petroleum Act as Amended (1969)

4.2.2 Petroleum Industrial Act 2021.

4.2.3 Criminal Code Act.

4.2.4 Associated Gas Reinjection Act (AGRA) 1979.

4.2.5 Associated Gas Reinjection (Continued Flaring of Gas 1984) Regulation.

4.2.6 Flare Gas (Prevention or Waste and Pollution) Regulation 2018.

4.2.7 Climate Change Act 2021.

4.3 Institutional Framework.

4.3.1 Nigerian National Petroleum Corporation (NNPC).

4.3.2 The Department of Petroleum Resources (DPR).

4.3.3 National Environmental Standard Regulation (Establishment) Agency (NESREA) Act

2007.

4.3.4 The National Oil Spill Detection and Response Agency (NOSDRA).

4.3.5 The Ministry of Petroleum Resources.

4.3.6 Nigeria Gas Company Limited (NGC).

4.3.7 Niger Delta Development Commission (NDDC).


4.3.8 National Upstream Regulatory Commission (NURPC).

4.4 National Policies on the Regulation of Gas flaring in Nigeria.

4.4.1 The Nigeria's Policy on Atmospheric Protection.

4.4.2 Natural Gas Conservation and Development Policy.

4.4.3 The Nigeria Gas Flare Commercialization Programme (NGFCP).

4.4.4 The Nigeria Gas Master Plan 2008.

4.5The Success and Failure of the Laws Enacted to Curb Gas Flaring in Nigeria.

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND

RECOMMENDATION

5.1 Summary of findings.

5.2 Recommendations.

5.3 Conclusions.
ABSTRACT

To curb Gas flaring in Nigeria has been one of the major issues the government has been faced

with in the oil and gas sector. Per World Bank Gas flaring is the burning of natural gas

associated with oil extraction. The impact Gas flaring has in the environment is very dangerous

and unhealthy to both the inhabitants and the environment. There is however an urgent need to

tackle this problem. In this work there would be a scrutiny of the enacted laws both local and

international laws made to combat Gas flaring, much emphasis would be made on the Nigerian

oil and gas sector in combating this issue. This work will also help us to find out the available

solutions and different ways to stop Gas flaring and using the Gas for the betterment and

advancement of the Nigerian oil and gas sector.


CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

This research seeks to appraise regulatory solutions to Gas flaring in Nigeria. The impact of Gas

flaring in the environment cannot be over-emphasized. Environmental laws are put in to mitigate

the threatening environmental problems human activities have caused in the quest for economic

growth and development. These activities tend to cause great havoc in the environment thereby

making it inhabitable. These human activities can be economic, social or cultural and includes:

fishing, hunting, deforestation, oil exploration and exploitations etc.

Gas Flaring is the burning of associated gas that accompanies the extraction of crude oil from oil

wells during oil exploration1. In petroleum countries where insufficient investment is made in

infrastructure, gas flaring is adopted to dispose of this ‘associated gas’ 2. In 2021, 144 billion

cubic meters of natural gas are burnt yearly with 400 million tons of CO2 discharges annually 3.

Particularly in Nigeria, an estimated 800 million standard cubic feet (mmscf) of gas is flared

regularly in virtually 144 gas flare location in Nigeria. Nigeria is rated 7 th highest gas fiery nation

globally by the World Bank’s Global Gas flaring Reduction Partnership (NNPC, 2017) 4.
1
Akindelen Adeniyi Mesach, ‘An appraisal of the legal framework for the control of Gas flaring in Nigeria’,
(2019).pp.1_233.
2
Ibid.
3
2022 Global Gas Flaring Trackers Report – World Bank Group available online at
[Link] last
accessed 15th February 2023.
4
Ibid.
According to NNPC monthly oil and Gas report Nigeria flared 252.26 trillion cubic feet of

natural Gas into the atmosphere5. While gas flaring is unavoidable in certain circumstances, there

are several solutions that allow operators to monetize this gas, resulting in an outcome which is

mutually beneficial for their bottom line and the environment. The World Bank’s initiative to

eliminate gas flaring by 2030 has had buy-in from many industry leaders and prominent oil-

producing countries. However, there is still work to be done to achieve this ambitious milestone.

World Bank data revealed that 2017 saw a five per cent decrease in flaring worldwide, with a

particularly significant fall in Russia. There is a huge opportunity to unlock the potential of

flared gas at both the Governmental and inter-Governmental level. Considering that 60 percent

of Africa’s population does not currently have access to electricity, the industry should be

looking for ways to convert this wasted gas into energy. Flaring often occurs in countries with

poor electrification rates and chronic power problems, such as Nigeria, Ivory Coast and Gabon.

These nations could harness this waste gas for power generation to support their own grids or sell

the excess to neighbouring nations suffering from power shortages.

Nigeria as a developing nation is vigorously involved in economic activities for economic and

developmental growth. One of such activities is crude oil exploration and exploitation which

degrades the environment when carried out. Nigeria is the largest producer of crude oil in

Nigeria and 15th largest in the world, producing on average about 2.2 million barrels (Central

Intelligence Agency 2010), and this accounts for over 90%-95% and 80% of Nigeria's foreign

earnings and government revenues respectively. This huge oil production however introduces

greenhouse gas through gas flaring in the environment, Nigeria has been recorded to be the

second largest gas flaring country with a flare volume about 15 billion cubic metres (BCM)-

5
Are Nigeria’s promises to end gas flaring merely hot air? –ISS Africa [Link]
promises-to-end-gas-flaring-merely-hot-air last accessed 15th February 2023.
after Russia according to the estimation by Elvidge et al. (2009). The impact of this crude

activities on the citizens of the country is very alarming and this has led the Nigerian government

to enact laws to this effect6. These laws enacted however have not yielded the required results as

the laws are only looking good on paper with little or no actions taken to make them effective.

The problem of Gas flaring in the oil and gas sector has also been traced to the fact that the

nation is highly dependent and more dedicated to exploration of oil than it is to gas. Several

deposits of gas discovered around oil wells in Nigeria, adequate policies for conservation of gas

should be made and money realised from it would be channeled to the economy. Numerous

research has shown that the rate at which gas is being flared in Nigeria is alarming and there is

an urgent need to find solution's, despite this there seems to be justifications for this unacceptable

environmental degrading act regardless of the dangers it causes to the people, environment and

economy.

1.2 Statement of the Problem

Nigeria is one of the largest producers of crude oil in the world, this perhaps makes it necessary

to curb gas flaring in the country. The country is the highest in Africa in terms of the amount of

gas being flared and 9th in the world. Although numerous approaches have been adopted in the

attempt to curb gas flaring in the country, it has not really solved the problem. It appears that the

Nigeria style of legal institutional framework is merely good on paper as there has been a poor

implementation of them.

The most affected state in the country is Niger Delta. The Inhabitants of this state are the most

affected in the society. Since the discovery and production of crude oil in the 60s, gas flaring has
6
Environmental Laws and Factors Affecting Them in Nigeria: Case Study of gas flaring laws in Niger Delta, available
at [Link] accessed 16th February 2023.
been going on in the Niger Delta. There has been agitation by the inhabitants and Non-

governmental organizations (NGO's) as a result of these environmental and social impacts of

these oil companies. The highly dependency in the Oil and Gas sector have made it intricate for

the Federal government to implement its anti-flaring laws strictly to avoid losing patronage of

multinational oil companies of its oil and prevent further reduction of oil revenues from the

sector.

Although the government has promulgated environmental and civil laws to check the activities

of the oil companies as a result of the outcries from the protest to improve the environment. The

emphasis here is also at looking at the solutions to curb the issue of gas flaring. In Nigeria gas

flaring has been on the increase in Nigeria, irrespective of the fact that the practice is against the

Fundamental human rights and the dignity as captured in chapter iv of the Constitution of the

Federal Republic of Nigeria as well as the African Charter on Human and People's right

(ACHPR) (article 20) and (articles 33 and 34) respectively.7

In the Niger Delta, 2 million people live within 2.5 miles of gas flare. According to the World

Bank, on top of these GHG emissions, black carbon more commonly known as soot is another

pollutant released by gas flares and this is highly dangerous to human health.

1.3 Aims and Objectives of the Research

The research will help us look into the impact of gas flaring in Nigeria. It will also help us look

into the policies and various legal and institutional frameworks which have been put in place to

combat the issue of gas flaring. We would also be looking at how effective these laws have been

and if it has had a positive impact yet. We will further identify the options that have variously
7
Environmental Laws and Factors Affecting Them in Nigeria: Case Study of Gas Flaring Laws in Niger Delta
[Link] accessed 16th February 2023.
been discussed and its efficiency and draw up recommendations for improvement and better

enforcement procedure.

In the quest to find adequate regulatory solutions to the issue of gas flaring in Nigeria, we would

be identifying the factors which have made the policies to eliminate gas flaring lack competent,

ineffective and inefficient. This will also include the independent and well-funded regulatory

agencies, the conflicting interest noticeably among the government, corruption in the oil and gas

industry, the un coordinated among the 3 tiers of government, lack of cooperation among the 3

tiers of government, lack of accurate and regular flare reporting system and the delay in passing

fully the PIB into law will be determined.

1.4 Research Questions

The research objective of this study center’s on finding solutions to regulate the problem of Gas

flaring in Nigeria.

The research questions are as follows:

Firstly, are measures and laws being enacted to regulate gas flaring being followed well?

Secondly, has the legal and institutional framework for gas flaring in Nigeria been effective and

solved the problem?

1.5 Significance of Study


The research reveals the impact of gas flaring in Nigeria and regulatory solutions to ending the

menace. There has been a poor response to gas flare eradication in Nigeria due to gaps in the

existing Legal and Institutional framework for gas flaring. Nigeria is highly blessed with natural

gas8, the utilisation of it will help the country as it has helped other countries for example the

USA. These natural gas can be used to produce power for electricity. It could also be productive

in heating and cooking made possible through gas pipelines networks or other industrial use.

Natural gas will ensure a cleaner and more efficient source of energy as it will play an important

role in the transition to a low carbon future, therefore ending routine gas flaring is a necessary

step on our journey to that future9.

It is noteworthy that there have been laudable efforts by the Nigerian government to eradicate the

issue of gas flare. The pro-gas utilisation policy by the Nigerian government rather than rely on

gas flaring penalties10 by Nigerian government since 1999 is laudable as it has drastically

reduced the insurgence of gas flaring in Nigeria from 24 percent to 18 percent in the country

between 2011 and 201211. Although statistics from DPR shows that the rate of gas flaring grew

owing to the failure of the government to keep implementing this policy. There have also been a

number of other regulatory policies by the federal government to combat gas flaring. This

includes the zero flaring policy for new oil and gas in Nigeria, ministry of petroleum resources

(MPR) etc. All these have not been effective enough in finding the regulatory solutions to

eradicating gas flaring in Nigeria.

8
K.C Osundina and E.O Lawal and O.O Adesuyi, ‘Millennuium Development Goals and Poverty in Nigeria-An
Empirical Analysis, Development Country Studies ‘Vol.3. No.8, (2013) pp.98-104 at p.98.
9
Environmental Leader, ‘Natural Gas’: An Important part of a Sustainable Energy Future’, (12 June 2012). Available
at [Link]/2012/06/12/natural-gas-an-important-part-of-suistainable-energy-future.
Assessed 16th February 2023.
10
S.A Khan, ‘Nigeria: The Political Economy of Oil’, (Oxford: Oxford University Press, 1994), p.168.
11
Ministry of Petroleum Resources Bulletin, ‘Achievements of the Ministry of Petroleum resources and its
Parastatals’, during Mr. President’s First One Year in Office (22 May 2012),p.4 Accessed 16th February 2023.
1.6 Research Methodology

This research was done with both primary and secondary sources of data collections. These

materials include journals, contemporary books, newspapers, Internet sources, decided cases and

statutes etc. were used for the research methods to shed more light on the practice of gas flaring

and also finding its solutions. Relevant facts were also garnered from the NNPC, Shell P.B and

Mobil oil companies and updates in the goings on and developments in the oil and gas industry.

1.7 Research Structure

This work is divided into five chapters.

Chapter one introduces the study, background of the study and statement of problem. It also

highlights the scope, aims and objective of the study, and method of research.

Chapter two explores the literature review which explains the concepts and provides detailed

definition of recurring terms used in this study. It also explores the theoretical framework which

explains the different theories obtainable to this area of study. The summary of literature will

identify areas which have not been made relevant or comprehensively studied, by bringing to

limelight the contributions of notable authors in the area.

Chapter three deals with the International Laws and Institutions for Gas Flaring. It covers those

international laws that guide gas flaring.

Chapter four highlights the Legal and Institutional Framework for Gas flaring in Nigeria. Here

there was a need to look into the legal and institutional framework to combat the issue of Gas
flaring in Nigeria. It also looks into the Success and Failure of the Laws Enacted to Curb Gas

Flaring in Nigeria.

Chapter five being the last chapter of this project covers the Summary of Findings,

Recommendation and Conclusion of the work.

1.8 Scope of the Study

The research was based on finding regulatory solutions to the problem of Gas flaring in Nigeria.

The environmental and energy consequences of flaring of associated gas offends the United

Nations clamour for a sustainable development of the environment, and has continued to

generate adverse criticism.

Despite efforts by the Nigerian Legislation to eradicate the issue of gas flare in 2008 when the

Associated Re-injection Act (AGRA) was amended to increase the gas flaring penalty. A

Comparative analysis of Nigeria and Texas Regulations, believed that about 25 percent of gas

production in Nigeria was flared while only 75 percent of gas production was utilised 12. Nigeria

being signatory to several international conventions and protocols aimed at reducing gas flaring

has had little or no effect as efforts have remained not yielded its aim at regulating gas flare.

1.9 Limitation of the Study

12
Available at [Link] accessed 16th February 2023.
The limitations encountered in the production of this paper include: high cost of typing, high cost

of printing papers, lack of comprehensive texts or work on the topic, lack of electricity and

shortage of funds.

CHAPTER TWO
LITERATURE REVIEW

2.1 Introduction

This Chapter is concerned with the scientific theories of gas flaring phase out or zero routine

flaring initiative, the natural gas utilisation proponents and the advocates of sustainable

development of the environment as well as the empirical framework for gas flaring.

Gas flaring has been a concern among scholars from different fields of study, due to its

deleterious effects on the ecosystem, aquatic resources, and human health hence the need for this

study captured gas flaring as a menace that has to be combated to promote a healthy and

sustainable environment in Nigeria. That study appears relevant to this study, but it fails to

emphasise the sustainability of energy resources to promote clean or low-carbon-energy

utilisation in the country.

2.2 Conceptual Framework

The Conceptual Framework of Gas flaring in Nigeria has established linkages upon which

environmental issues and solutions can be discerned. There is however need to discuss the term

gas flaring as well as the gas or associated natural gas.

Meaning of Environment?

Environment can be defined in a Lay man's term as one's surroundings. It is the location one

finds himself at any given point in time. According to the Black's Law Dictionary, it defined

environment as "the totality of physical, economic, cultural, aesthetic, and social circumstances

and factors which surround and affect the desirability and value of property and which also affect
the quality of people’s lives. The surrounding conditions, influences or forces which influence or

modify". The National Environmental Standard and Regulation Enforcement Agency Act, 2007

defines ‘environment’ in the following perspectives; ‘Environment’ include water, air, land,

animals living therein and in relationship exist among these or any of them.

Section 20 of the 1999 Constitution of the Federal Republic of Nigeria defines environment as

(a) The water

(b) Forest and wildlife

(c) All layers of the atmosphere

(d) All organic and in-organic matter and living organisms, and

(e) The interacting nature system that includes the component referred to in paragraphs (a) –

(d).13

However, the word ‘environment’ means the totality of the air, water, land, forest and wildlife of

Nigeria. This however places much significance on the need to protect our Environment from

anything that will degrade it. The Environment should always be in a good condition and it's the

duty of both the government and the people to preserve and safeguard it.

Meaning of Oil and Gas?

Oil and Gas means petroleum, natural gas and other related hydrocarbons or minerals or any of

them and all other substances produced or extracted in association therewith. Oil and gas also

13
1999, Constitution of the CFRN (as amended 2011)
means a mixture of hydrocarbons that exists in liquid phase in natural underground reservoirs

and remains liquid at atmospheric pressure after passing through surface separating facilities.

What is Gas Flaring?

A University don14, Department of Hematology and Blood Transfusion, Madonna University

Elele, Nigeria on his part defines gas flaring as the burning of natural gas that is associated with

crude oil when it is pumped up from the ground. Also chemical factories, oil refineries, oil wells,

rigs and landfills, gaseous waste products and sometimes even non-waste gases produced are

routed to an elevated vertical chimney called a gas flare and burnt off at its tip, this is called gas

flaring. According to him, Waste gases are subjected to such a process either because the gases

are waste or it is difficult to store and transport them while waste gases are burnt off to protect

the processing equipment when unexpected high pressure develops within them. However, he

concluded that Gas flaring in oil rigs and wells contributes significantly to greenhouse gases in

our atmosphere.

According to the World Bank Gas flaring is the burning of natural gas associated with oil

extraction.15 It is the process whereby natural gas associated with crude oil during production of

crude oil is burnt. Natural gas supply in Nigeria comes in two streams - gas isolated wells (or

non-associated gas), and gas discovered together with oil (associated gas). These two sources

exist in roughly equal proportions. While non-associated gas can be left underground until

needed, associated gas is unavoidably lifted together with crude oil, and must either be harvested

or disposed on-site as an unwanted by-product of oil. Gas flaring is a common practice in

14
A.O Ajugwo. Negative Effects of` Gas Flaring: The Nigerian Experience. Available at
[Link]
15
World Bank – What is gas flaring? [Link]
explained|
petroleum producing areas where there is insufficient investment in infrastructure to utilise the

produced gas, non-viable markets and economic constraints which makes it difficult for

companies to process and sell.

Gas or Associated Natural Gas?

Associated Petroleum gas (APG) is also known as flare gas. It can be converted to power at high

efficiency and utilised. This power can be used for the provision of electricity and heating on-site

whilst eliminating the cost of diesel deliveries to remote areas. For example APG can be used as

a fuel for a generator and it's an excellent way of reducing carbon dioxide emissions that might

otherwise result from diesel fuel consumption. Natural gas that comes from oil wells is typically

termed 'associated gas'.

2.3 Theoretical Framework

The issue of gas flaring has been a global phenomenon which has caused much damage to our

environment. The Sustainable Development Theory was advanced from the Brundtland Report in

1987 after the Stockholm Conference on Human Environment in 1972. The theory is appropriate

to this study since it emphasises the need for governments to utilise their copious extractive

resources sustainably by remodeling their anti-gas-flaring laws in conformity with the 21-century

anti-gas-flaring laws in the selected case-study countries for sustainable energy security in

Nigeria, the failure of which might have negative consequences for the country’s economy.

Clean energy and transition to low-carbon-energy sources will promote socio-economic growth

in Nigeria for both present-day and upcoming generations and to satisfy their energy necessities.

Niger Delta environment, with regard to environmental pollution, which comprises the air, water

and land pollution greatly exemplify the problems of gas flaring in Nigeria.
Theory of Environmental Pollution

According to Encyclopedia Britannica (2002), the general principle that pollution (air),

especially from gas flaring, occurs all the time, all day and has consequential damaging effects

on the people is there. In support of this, Mittermeier (2012) observed that pollution occurs when

the ecosystems are not safe guarded and are tenaciously exerted with the forces greater than the

capacity it can absorb. In Nigeria The impact of pollution on the marginalised people of Niger

Delta areas and how foreign direct investment and sound government strategies, sustainability, or

energy security is sine qua non for polluted and less-favoured or marginalised areas in Nigeria

that can be made pollution free. The impact of pollution on marginalised people and how foreign

direct investment and sound government strategies or energy security could be useful for

polluted and less-favoured or marginalised and even mono-industrial areas is significant in

Nigeria. These have been largely debated worldwide in different case studies and such an

approach could be developed in African countries and for the particular purpose of combating

gas flaring in the Niger Delta areas in Nigeria, especially in those areas where poor or

marginalised people live. The air pollution and socioeconomic position impact a great deal on

the health of the people and society. It has also been linked to health effects, which include

mortality and morbidity from heart and lung diseases.

Gas flaring phase out or zero initiative

This theory posits that in view of the regulatory solutions to Gas flaring in Nigeria was feasible,

subject to the commitment of the government in achieving that objective. In 2009, the senate

passed the gas flaring Bill, making it illegal for operators to flare gas in Nigeria beyond

December 31, 2010. This deadline was not meant and was extended to December 2012 as the
new zero- gas flaring date, as well as impose a fine of $500,000 on any company that fails to

report within 24 hours, any emergency flaring on account of equipment failure 16. It is also

unfortunate that Nigeria with the second largest gas flaring record in the world after Russia is yet

to sign the ' Zero Routine flaring by 2030' initiative.

Theory of Environmental Degradation

The scholars in this school are Meyers R, Jack D. Ives among others. They believe that

environmental degradation creates a huge loss to the economy and it is linked to other problems

that deny the environment the natural gifts that ought to benefit man. They are also of the view

that aside destruction of grasslands, forested areas, bodies of waters, environmental degradation

could be increased when the people press for fuel, land cultivation and or explorations for natural

resources. This adds to the degradation of the environment.

The above theories explain the co- relationship between the theory of pollution and

environmental degradation as affecting the people of Niger Delta. This makes them vulnerable to

terminal diseases and death.

Sustainable Development Theory

This theory started from the Stockholm Conference on Human Environment in 1972. The theory

states that the government should sustainably use their extractive resources. Sustainability is a

development that satisfies the current necessities without compromising the ability and needs of

forthcoming generations.

16
Rose Okere, Nigeria Burns off $5 Billion Resources Yearly From gas flaring, (n.10).
It is a development where the utilisation of extractive resources, the course of financings, the

thrust of technological advancement, and institutional, legal framework are in conformity with

the international best practices to enhance the current and future potential in the mid-stream gas

sector to satisfy mortal needs with the aim of promoting harmony among human beings

(humanity) and nature. The theory is relevant to this study because the issue of gas flaring goes

against sustainable development. Sustainable development emphasises that the use of natural

resources should not jeopardize the value of a life of the present-day and upcoming generations

and should not damage the ecosystem. The theory emphasises that human beings must be

cautious of the way they manage natural resources to aid sustainable development in the sector

through the proper management of petroleum resources to combat gas flaring by oil companies.

Resource Curse Theory.

This theory emphasises that natural-resources-abundant countries frequently suffer from weak

economic growth. It puts forth that resource-wealthy countries lack economic prosperity and

developments that are commensurate with their abundant petroleum resources due to corruption,

failure to diversify their economies and natural resources to other natural endowments such as

agriculture, solid minerals, among others, and failure to enhance their industrial developments to

combat gas flaring and other environmental degradations. There is therefore a need for stringent

enforcement of anti-flaring and other environmental laws in Nigeria to protect social, economic,

and other environmental interests in the sector and to improve the welfare of Nigerians.

2.4 Summary of Literature Review


The importance of combating the issue of gas flaring has led to many Juristic Ink to flow on the

Subject. According to Adasanya, a fundamental human right lawyer he volunteered an insight

into the issue of gas flaring. He was of the view that the absence of the people’s environmental

right provision in the Nigerian Constitution of which has activated the continued gas flaring in

Nigeria. Also J. Nnamdi Adaba another Fundamental human right lawyer was also of the view

that flaring is illegal, unconstitutional, a breach of fundamental human right to Life and should

cease, but it has not.

However, in combating gas flaring there is need for a three tier adoption of different methods to

conserve oil and gas as a means of tackling gas flaring issues. This means that not only the

Federal government should be mandated to curb gas flaring but other tiers of government too,

with collaborative efforts amongst agencies and stakeholders. Oil companies who default in the

social responsibility of curbing gas flaring should be wound up. This would end the issue of gas

flaring in Nigeria.

Effects of Gas Flaring.

Effects of Gas Flaring on the Environment.

The Impact of gas flaring on the people and environment has been unhealthy. The Nigerian

government has viewed environmental and human health as a secondary consideration. Gas

flaring contributes to climate change, which has serious Implications all over the world. Gas

flaring also emits carbon dioxide which is the main greenhouse gas into the air. On the part of

Acid rains, it has been heavily linked to the activities of gas flaring. 17 Gas flaring for instance,

has negative effects on the immediate environment, particularly on plant growth and wildlife.

17
FOE (Friends of the Earth), Gas Flaring in Nigeria, 2004.
Researchers have shown the effects of waste gas flares on the surrounding vegetation in south-

eastern Nigeria and concluded that further studies were necessary to determine the effects of the

flares on the yield of crop plants grown in the area but the present results indicate that flare

effects doubtfully extend beyond a distance greater than 110 m from the stacks, except in the

case of suppression of the flowering of short-day plants Studies show that gas flaring

significantly affects not only the microclimate but also the soil physic-chemical properties of the

flare sites. There is an adverse ecological and bacterial spectrum modification by gas flaring. Gas

flaring contributes to climate change, which has serious implications for the world. Gas flaring is

a major source of greenhouse gases (GHG) contributing to global warming which could

accelerate the problem of climatic change and harsh living conditions on earth, if not checked.

Flaring releases carbon dioxide and methane, the two major greenhouse gases of these two,

methane is actually more harmful than carbon dioxide. It is also more prevalent in flares that

burn at lower efficiency. Those less efficient flares tend to have more moisture and particles in

them that reflect heat and are said to have similar effect on the ozone layer like aerosols do.

From the greenhouse gases researched so far, the global warming potential of a kilogram of

methane is estimated to be twenty-one times that of a kilogram of carbon dioxide when the

effects are considered over one hundred years. Flaring may further contribute to local and

regional environmental problems, such as acid rain with attendant impact on agriculture, forests

and other physical infrastructure. Acid rain results in environmental degradation including soil

and water contamination and root erosion. The incineration of sour gas produces sulphur oxides,

which are released into the atmosphere.


In terms of volume of gas flared, next to Russia in the global statistics is Nigeria. The

corresponding volume of gas flared in Nigeria was one - sixth as compared to that flared

worldwide and this has adversely affected the economy, environment, agricultural yield etc.

In tackling this the Social and Economic rights action centre, instituted an action against the

Nigerian government over what is described as violation of Right to clean environment, food and

health. The case of the people of Ogoni. Nigerian Ogoni ethnic group 18. Two non-governmental

organizations filed a complaint in that instance in March 1996. Both the Centre for Economic

and Social Rights (CESR) in New York and the Social and Economic Rights Action Centre

(SERAC), both established in Nigeria, were involved. Several claimed significant human rights

violations against the Ogoni people were discussed in the communication. In the case, it was

claimed that Nigeria's military administration had actively participated in careless oil

development methods in the Ogoni zone. The Nigerian National Petroleum Firm (NNPC), the

country's state-owned oil company, established a joint venture with Shell Petroleum

Development Corporation (SPDC), whose operations in the Ogoni region are thought to have led

to environmental deterioration and health issues among the Ogoni people. The complaint alleged

that the military government of Nigeria had been directly involved in irresponsible oil

development practices in the Ogoni region. The Nigerian National Petroleum Company (NNPC),

the State oil company, formed a joint venture with Shell Petroleum Development Corporation

(SPDC) whose activities in the Ogoni region allegedly caused environmental degradation and

health problems among the Ogoni people, resulting from the contamination of the environment.

In particular, the complaint denounced the widespread contamination of soil, water and air; the

destruction of homes; the burning of crops and killing of farm animals; and the climate of terror

18
The Social and Economic Rights Action Center & ors v. Nigeria, Comm. No. 155/96 (2001).
under which the Ogoni communities had been suffering, in violation of their rights to health, a

healthy environment, housing and food. In terms of the African Charter, these allegations

included violations of Articles 2 (non-discriminatory enjoyment of rights), 4 (right to life), 14

(right to property), 16 (right to health), 18 (family rights), 21 (right of peoples to freely dispose

of their wealth and natural resources) and 24 (right of peoples to a satisfactory environment). The

communication further alleged that the Nigerian government had condoned and facilitated these

violations by placing the legal and military forces of the state at the disposal of the oil

companies. In addition, the complainants argued that the Nigerian government neither monitored

operations of the oil companies nor required safety measures. The government had also withheld

information on the dangers created by the oil activities from the Ogoni communities.

Furthermore, the communication complained of Nigerian security forces attacking, burning and

destroying several Ogoni villages and homes under the pretext of dislodging officials and

supporters of the Movement of the Survival of Ogoni People (MOSOP) between 1993 and 1996.

Finally, the government failed to investigate these attacks, let alone punish the perpetrators; in

other words it failed to exercise due diligence in this respect. The African Commission found

violations of Articles 2, 4, 14, 16, 18(1), 21 and 24 of the African Charter. It appealed to the new

civil government in Nigeria to fully protect the environment, health and livelihood of the people

in Ogoni land. In order to accomplish this, the government should, inter alia, stop the attacks on

Ogoni communities, conduct an investigation into the human rights violations and prosecute

officials of the security forces and officials of the Nigerian National Petroleum Company. The

government should also make adequate compensation to the victims, including relief and

resettlement assistance, and undertake a cleanup of land and rivers polluted and damaged by the

activities. The government should also take measures to ensure that appropriate environmental
and social impact assessments are undertaken in case of future oil development activities.

Finally, the population should be properly informed about possible health and environmental

risks. By making these recommendations to the Nigerian government, the Commission adopted

almost all of the suggestions for governmental measures of redress suggested by the

complainants in the communications.

The Health Effect

Gas flaring has a widespread negative influence on public health, and anyone who relies on

locally grown food—whether they grow it themselves or buy it at the market—runs the risk of

being ill. The flares contaminate the air since they include well-known pollutants like benzene.

Residents who live close to flare locations frequently complain of bronchitis and asthma. There

have been over 250 identified toxins released from flaring including carcinogens such as

benzene, carbon disulphide (CS2), carbon disulphide (COS) and toluene; metals such as

mercury, arsenic and chromium; sour gas with H2S and SO2; Nitrogen oxides (NOx); Carbon

Dioxide (CO2); and methane (CH4) which contributes to the greenhouse gases 19. Humans

exposed to such compounds may experience a range of respiratory issues, many of which have

been documented in youngsters in the Niger Delta but appear to have received no further

investigation. Asthma, chronic bronchitis, and breathing problems can all be made worse by

these toxins. It is noteworthy that benzene, a chemical commonly known to cause leukaemia and

other blood-related disorders, is known to be released during gas flares in unrecorded

proportions.20 Gas flares are frequently placed close to local communities and frequently lack

19
Gas Flaring in Nigeria, Friends of the Earth Media Briefing , 14 October 2004, available online at
[Link]/resource/media_briefing/[Link].
20
Abikoye, Adhekpukoli, Babade, ‘Nigerian Environmental Law and the Menace of Gas flaring’ (2014), pg15 Pp.1-
39.
proper fence or protection for the villagers who run the risk of coming in contact with the intense

heat of the flare while going about their everyday business. Numerous residents of these areas

assert that the surrounding flares are to blame for the acid rain that corrodes their homes and

other nearby structures, many of which have metal roofs21. Endocrine abnormalities,

immunological disorders, reproductive issues, and autoimmune rheumatic diseases have all been

linked to environmental pollutants22. Thermal pollution should also be addressed because there is

a limit to how much flux from gas flaring the human body can withstand. Furthermore, there are

heat thresholds for the neighbouring ecosystem and structural buildings23.

The Economic Effect

The economic effect of gas flaring on Nigeria is severe and cannot be overemphasized. Oil

companies in Nigeria flare an estimated 2.5 billion cubic feet of gas every day and this amounts

to the loss of revenue, estimated at 2.5 billion US dollars yearly 24. About 40 billion cubic meters

of Gas is flared by Africa every year, with Nigeria contributing 46% and if this is put in use in

generating power in efficient modern power plants, this would double the power production in

Sub-Saharan Africa excluding South Africa25.

Another report conducted by Vanguard in 2019 stated that Nigeria flares approximately 425.9

billion standard cubic feet of gas, which could be sold at NGN 460.5 billion (USD 1.1093152) as

of 2019 if not flared . This revenue lost to gas flaring in 2019 could have been utilised on low-

income housing schemes and electricity. It would have improved Nigeria’s global ranking in

21
Ibid.
22
Ibid.
23
L. W. Kostiuk and G.P. Thomas, “Characterization of Gases and Liquids Flared at Battery Sites in the Western
Canadian Sedimentary Basin,” (2004), Technical Report, University of Alberta, Edmonton, p. 95.
24
[Link] and O. Oshodi,”improper Abandonment of Oil,” Nigerians in America, (2010).
25
Kareem, S.D et al, “Foreign direct investment and environmental degradation of oil exploitation: The experience
of Niger Delta”, International Journal of Applied Economic Finance, (2012), Vol. 6, pp 117 – 126.
housing and it would have provided an additional 13,124 standard housing units in the country.

The economic challenges also range from decrease in agricultural productivity to gas flaring on

the environment and the people, environmental pollution, the impact on human Health, noise and

environmental disorder, etc. The nation also loses billions of dollars’ worth of gas which is

literally burnt off daily in the atmosphere. Much of this can be converted for domestic use and

for electricity generation. This will improve the level of electricity generation in the country to

meet the national demand. The problems can be solved if the government can basically focus on

procurement of infrastructure to end gas flaring by cutting down on profits being made.

Gas flaring gas has been described as enormous loss of revenue that could have been realized

despite the fact that some percentage of gas is sold in the domestic market to industries like

cement, brewery, glass and aluminium as complement to the use of diesel and fuel oil to operate

private generators26. As liquefied natural gas, there is high demand for gas in the international

petroleum market. Therefore, investors are showing more interest in gas production in Nigeria

because of its high economic potential and higher efficiency when compared to other fuels 27.

The flaring of this associated gas is a colossal waste to the communities 28. The economic cost of

total gas flared is quite staggering which implies great investment opportunities for the private

sector. Hence, more gas intensive modes of production, greater private sector investment are

encouraged in the sector and governments should recycle and seek for more trading opportunities

for the gas sector29.

26
Ojide Makuachukwu Gabriel et al, “Impact of Gas flaring on Sustainable Economy in Nigeria.
27
Ibid.
28
Ibid (Note 78) at 54.
29
[Link], “Economic Analysis of Wastages in the Nigerian Gas Industry,” (2010) International Journal of
Engineering Science and Technology, Vol. 2, No 4, pp. 618-624.
CHAPTER THREE

INTERNATIONAL LAWS AND INSTITUTIONS FOR GAS FLARING

The international community and Institutions has realized the growing concern on gas flaring

and taken some steps which seriously seek to address the problem. This has given rise to a

number of international laws and Conventions put in place to curb gas flaring. The international
community has sought to address the impact of gas flaring through some conventions and

policies with the belief that this would reduce gas flaring. Nigeria, a developing country, is one

of the largest gas flaring countries in the world and has subscribed to these international

environmental instruments (conventions and policies) with the sole aim of ameliorating the

deficiencies in its environmental governance as well as the energy sector. The international

environmental regimes on gas flaring are identified and discussed below are the United Nations

Framework Convention on Climate Change (UNFCCC), the Kyoto Protocol and the Global Gas

Flaring Reduction (GGFR).

3.1 The United Framework Convention on Climate Change (UNFCCC).

The United Framework Convention on Climate Change (UNFCCC) was signed into law in 1992.

The objective of the treaty is to stabilize Greenhouse Gas (GHG) concentrations in the

atmosphere at a level that would prevent dangerous anthropogenic interference with the climate

system. Nigeria is not only fully committed to the UNFCCC process towards adopting a global

treaty which will be applicable to all parties at the Paris Conference of the parties 21 (COP21) in

pursuit of the two-degree Celsius objective but is currently working to produce its Intended

Nationally Determined Contribution (INDC). The treaty itself sets no binding limits on

greenhouse gas emissions for individual countries and contains no enforcement mechanisms. In

that sense, the treaty is considered legally non-binding. Instead, the treaty provides a framework

for negotiating specific international treaties that may set binding limits on greenhouse gases. 30

The Convention entered into force on 21 March 1994.

3.1.1 The Kyoto Protocol to the United Nations Framework on Climate Change.

30
UNFCCC STATUS ON RATIFICATION available at [Link]
ratification/status-of-ratification-of-the-convention (accessed 12th February 2023)
The Kyoto Protocol was signed in 1997 as a protocol to the UNFCCC and entered into force on
31
February 14, 2005. The Kyoto Protocol is an international agreement linked to the United

Nations Framework Convention on Climate Change, which commits its parties by setting

internationally binding emission reduction targets based on the premise that (a) global warming

exists and (b) man-made carbon emissions have caused it. 32The protocol derives its sustenance

from Article 2 of the UNFCCC which states that the ultimate objective of the protocol is to

stabilise the concentration of greenhouse gases in the atmosphere "at a level that would prevent

dangerous anthropogenic (i.e., human) interference with the climate system." 33Recognizing that

developed countries are principally responsible for the current high levels of GHG emissions in

the atmosphere as a result of more than 150 years of industrial activity, the protocol places a

heavier burden on developed nations under the principle of common but differentiated

responsibilities. The entry into force of the Kyoto Protocol was a landmark in global efforts to

deal with man-made climate change. The protocol establishes a framework that will help to limit

emissions in Annex B parties and enhance sustainable development throughout the world.

Essentials of the Kyoto Protocol should serve as a ladder to achieving a more ambitious climate

regime.

Another Important element of the Kyoto Protocol is its flexibility mechanisms that enable

nations to achieve their emission target by means other than reducing their domestic emission of

greenhouse gases. Such mechanisms are the Clean Development, Joint Implementation, and

Emission Trading Mechanisms.

31
Text of the Kyoto protocol to the united nations framework convention on climate change available at:
[Link] (accessed 12th February, 2023)
32
Kyoto Protocol to the United Nations Framework Convention on Climate Change, 31 ILM 849 (1992)
33
Article 2 of the UNFCCC
International Emissions Trading: Under article 17 of the Kyoto Protocol, countries with

commitments under the protocol can acquire emission units from other countries with

commitments under the protocol and use them towards meeting a part of their targets. An

international transaction log and a software-based accounting system ensure secure transfer of

emission reduction units between countries.34

Joint Implementation (JI): Through the JI mechanism, a country with an emission reduction

limitation commitment under the protocol may take part in an emission reduction or removal

project in any other country with a commitment under the protocol, and count the resulting

emission units towards meeting its Kyoto targets. This is provided for under article 6 of the

Kyoto protocol.35 Under this mechanism, there are two tracks by which projects can apply for

approval: party-verification and international independent body verification. The mechanism is

overseen by the JI Supervisory Committee that answers ultimately to the countries that have

ratified the protocol.36

In specific terms, the protocol establishes the Clean Development Mechanism (CDM) giving the

parties not included in Annex A opportunity to benefit from project activities in Certified

Emission Reductions (CERs). Under Article 3 of the Protocol, parties included in Annex A can

depend on the CERs accruing from such project activities to contribute to compliance. To qualify

for the Clean Development Mechanism (CDM), a project must meet two basic critical criteria

that includes additionally and sustainable development.

3.1.2 Clean Development Mechanism (CDM) in Nigeria

34
[Link] (accessed 12th February 2023)
35
ibid
36
ibid
As a result of Nigeria agreeing to the Kyoto Protocol in December 2004, it gives room for the

trading of Certified Emission Reductions (CERs) in Nigeria and makes Nigerian emission

reduction projects eligible for the issuance of Certified Emission Reductions ( CERs). The Clean

Development Mechanism (CDM) engenders a symbiotic relationship whereby Annex A

Countries looking to meet predetermined emission reduction targets are able to finance emission

reduction projects. As the developing countries benefit from the finance received for such

projects, the Annex A countries are able to meet their emission reduction targets. The purpose of

the Clean Development Mechanism (CDM) is to assist parties not included in Annex I in

achieving sustainable development and in contributing to the ultimate objective of the

convention, and to assist parties included in Annex I in achieving compliance with their

quantified emission limitation and reduction commitments under Article 3. As provided by

article 12 of the protocol, CDM allows emission reduction or removal projects in developing

countries to earn certified emission reduction credits (CER), each equivalent to one ton of carbon

and these certified emission credits can be traded and also used by industrialised countries to

meet a part of their emission reduction targets. This mechanism stimulates sustainable

development and emission reductions while giving industrialised countries some flexibility in

how they meet their emission reduction limitation targets. The mechanism is overseen by the

Clean Development Mechanism (CDM) Executive Board. Nigeria is one of the beneficiaries of

this scheme as only a few projects have been fully approved by the Executive Board of the CDM

irrespective that high potentials for emission still exist in Nigeria. Some of these projects include

the Kwale oil-gas processing plant, which benefited from the initiative put in place by the

Protocol. The treated gas from this plant is piped to the Okpai Power Plant, which is excluded

from the emission reduction project. The Nigerian Legislation upon passage of a bill set
December 2010 as deadline for the full implementation of the Prohibition of gas flaring date.

However this has proved unrealistic as there are grossly underdeveloped upstream and

downstream Petroleum Industry.

3.2 International Institutions For Gas Flaring.

3.2.1 The World Bank Group Force

World Bank is one of the founding members of the Global Gas Flaring Reduction partnership,

World Bank has been at the forefront of tackling challenges associated with gas flaring. Its

partner is the United Nations Sustainable Energy for All Initiative (SE4ALL) aimed at increasing

the awareness to use of associated gas by helping in removing the technicalities associated with

Regulatory policy to reduce gas flaring. The Zero Routine Flaring by 2030 initiative was

launched at a meeting of the IMF/World Bank in Washington DC by the United Nations. Many

countries such as Cameroon, Russia, etc have so far endorsed it but Nigeria did not.

3.2.2 The Global Gas Flaring Reduction Initiative (GGFR) and Nigeria

This is an initiative by the World Bank and the primary responsibility is to facilitate and support

nations struggling to apply current flared gas by promoting effective regulatory framework and

tackling the impediments on gas utilisation in developing countries. 37 GGFR works to increase

use of natural gas associated with oil production by helping remove technical and regulatory

barriers to flaring reduction, conducting research, disseminating best practices, and developing

country-specific gas flaring reduction programs. The World Bank Group, in collaboration with

the government of Norway initiated this global public–private partnership to facilitate gas flaring

reduction with a view to reducing air pollution, save energy and money, and reducing associated
37
Gbite Adeniji, “Approaches to Gas Flare Reduction in Nigeria, “Paper presented at GGFR Forum, London.
poverty. Ending poverty and boosting shared prosperity is also an integral part of GGFR’s

strategy.

3.3 International Laws on Gas Flaring Domesticated in Nigeria.

3.3.1 The 1972 Stockholm Conference on Human Environment.

This law made the government aware of the importance of an all-encompassing strategy for

environmental protection as opposed to a sector-based one. By international standards, it was

viewed as a success and a soft law tool. The conference produced 26 principles, urging

governments and international organisations to adopt a coordinated, effective, and dynamic role

in environmental conservation. In response to the conference's recommendation, the United

Nations Environment Programme (UNEP) was established in 1973 to coordinate UN

environmental initiatives and help developing nations implement environmentally sound policies

and practices. Also, UNEP and the World Meteorological Organization established the

Intergovernmental Panel on Climate Change (IPCC) in 1988. As laudable as these principles are,

it is yet to be domesticated in Nigeria.

3.3.2 The Vienna Convention on the Protection of the Ozone Layer 1988.

The Convention requires parties to take action to safeguard human health and the environment

from harmful ozone layer activities, but it makes no legal provisions for reducing

chlorofluorocarbons (CFCs). The Montreal Protocol on Substances that Deplete the Ozone Layer

was created in support of the Convention and went into effect on January 1, 198938.

38
Akindele (note 1) at 129.
3.3.3 The United Nations Conference on Environment and Development (UNCED), (the

Earth Summit).

The important issues of environmental conservation and socioeconomic development were

discussed at the conference. The Climate Change Convention, the Kyoto Protocol, and the

Convention on Biological Diversity were all reached as a result of it, and it had considerable

impact on other UN conferences (CBD). The Rio Declaration on Environment and Development,

which comprised 27 principles to help direct global action and Agenda 21, was also supported at

the summit.

United Nations Conference on Sustainable Development (UNCSD).

It was assented to the adoption by world policy makers of a series of Sustainable Development

Goals (SDGs), to complement the United Nations’ (UN) Millennium Development Goals

(MDGs) and aimed at providing the foundation for a global green economy.

3.3.4 World Summit on Sustainable Development.

It is the fourth major environmental conference held under the auspices of the United Nations

since 1972. The Summit encouraged and recognized a total of 266 partnerships on Sustainable

development39. The most important of these was the Global Gas Flaring Reduction Initiative

(GGFR), which was formally introduced at the World Summit on Sustainable Development

(WSSD) in Johannesburg, South Africa, in 2002. Its goals were to lessen carbon emissions and

the environmental impact of flaring, to make wasted resources more valuable, to increase energy

efficiency and access to energy, and to reduce wasteful resource use. The initiative aims to

39
The UN Secretary-General Report of the Secretary General on Partnership, pg. 3, delivered to the Economic and
Social Council, UNDoc. E/CN.17/2004/16.
implement global flaring and venting standards, commercialise and regulate associated gas,

obtain carbon credits for gas flaring projects, and enlist the assistance of key stakeholders in

order to create a workable flare reduction strategy through the Nigerian Flare Reduction

Committee (NFRC)40.

CHAPTER FOUR

APPRAISAL OF THE LEGAL AND THE INSTITUTIONAL FRAMEWORK FOR GAS

FLARING IN NIGERIA

40
Omeke C, A Critique on the Legal Regime Governing Gas Flaring in Nigeria.
4.1 Historical view of Gas Flaring in Nigeria.

Oil was first discovered in 1956 at Oloibiri in the Niger Delta area of Nigeria by Shell D'

Archy41. The pioneer began production in 1958 from the company's oil field in Oloibiri in the

Eastern Niger Delta, this region is the centre for Oil explorations in Nigeria.

The first shipment of oil from Nigeria was in February 1958 which Shell commissioned several

terminals pursuant to the progress made 42. The Federal Government and Shell entered into an

agreement to Legitimise it in 1973, the federal Government acquiring 35% shares in the oil

companies. The second participation agreement was made in April 1974, the Federal

Government increasing it's equity to 55% as well. In July 1979, a third participation Agreement

was made through the Nigerian National Petroleum Corporation (NNPC) and Nigeria's equity

was however increased to 60% in August 1979 therefore, the fourth participation was finalised

thereby placing the shareholding at 80% and 20% for Nigeria National Petroleum Co-operation

(NNPC) and Shell respectively43.

The first oil field came on stream, with production of about 6,000 barrels a day in 1958. This

started at Oloibiri, a village in Niger Delta. This however resulted in the production of over 2

million barrels of crude oil a day by the late sixties and early seventies 44. By 1980's oil revenue

accounted for 90% of Nigerian foreign exchange earnings and 85% of the government revenue 45.

Oil production continued to bloom and refineries were built, the first and oldest being the Port

41
Shell Nigeria, ‘History of Shell in Nigeria’. Available at
[Link] Accessed 20th February 2023.
42
On April 1961, Shell’s Bonny Terminal was commissioned. In September 1971, Shell’s Forcados Terminal was
commissioned.
43
Shell Nigeria, (n 2) 34
44
Shell Nigeria (n 2) 37
45
O. Odeyemi, and O.A Ogunseitan, (1985). Petroleum Industry and its Pollution Potential in Nigeria. Oil and
Petroleum Pollution, Elsevier Applied Science Publishers Ltd, England.
Harcourt refinery, commissioned in 1965. It produced about 35,000 barrels per day, which later

expanded to 60,000 barrels per day. The Port Harcourt refinery had a capacity of 150,000 barrels

per day and about 606 oil fields with 355 situated on shore, 251 situated with 5,284 drilled oil

wells46.

The associated natural gas had a high proportion in the Niger Delta area of Nigeria and the

dominant perception in the oil industry at that time was that the natural gas was a waste that

involved the process of removing crude oil from the ground. The fact that there was no facility to

capture and store gas led to oil companies flare gas without check. In this work we would discuss

the regulatory laws and regulations passed to curb gas flaring.

4.2 Regulatory Framework to Curb Gas Flaring in Nigeria.

The principal legal framework for combating gas flaring in Nigeria is as follows:

The 1999 Constitution of the Federal Republic of Nigeria.

The 1999 Nigerian Constitution, which is the principal law, provides extensive environmental

protection, and it falls under Chapter 2 of the Constitution, which is non-justiciable under section

6(6)(c) of the Constitution. Section 20 states that “the state shall maintain and improve the

environment and safeguard the water, air, and land of Nigeria, as well as the forest and wildlife.”

In a court of law, an injured party cannot rely on it. As a result, it will not guarantee significant

environmental protection or conservation against gas flaring in the oil industry47.

46
A.A Kadafa, “Environmental Impact of Oil Exploration in the Niger Delta Region of Nigeria”, Global Journal of
Science Frontiers Research, vol 12 2012. Published by Global Journals Inc. USA. Available at
[Link] accessed 5th February
2023.
47
Section 20 of the 1999 Constitution as Amended.
4.2.1 The Petroleum Act and Regulations 1969 (as amended).

The Petroleum Act is the leading legislation governing primarily pollution control in the oil and

gas sector. Section 9(1) (b) (iii) of the Petroleum Act 1969 gave the Minister of Petroleum

Resources (MPR) the responsibility of making regulations for the prevention of pollution of

water courses and the atmosphere. The Act also provides that the licensee or lesser of an Oil

Mining License (OML) shall not later than 5 (five) years after the commencement of production,

submit to the Minister of Petroleum Resources, a feasibility study program or proposal that it

may have for the utilisation of any natural gas do discovered in the relevant area. The Act made

it compulsory for oil companies to submit their strategies for gas utilisation, it did not provide

any penalty for any default by oil companies to submit the plans. It also allowed producers to

flare gas for a period of five years before submitting the feasibility study.

4.2.2 The Petroleum Industrial Act 2021

The Petroleum Industry Act 2021 section 102(1)(a)(b)(2)(3)(a)(b)(4)(5)(6) of the Act requires a

licensee or lessee who engages in upstream and midstream petroleum operations to, within one

(1) year of the effective date or six months after the grant of the applicable licence or lease,

submit for approval an environmental management plan regarding projects that require an

environmental impact assessment to the Authority 48. The environmental management plan must

conform to the extant laws on the environment 49. The Authority is to approve the environmental

management plan if it complies with the relevant environmental law and the applicant has the

capacity or provided he can rehabilitate and manage the negative impacts of its operations on the

environment50. Section 103(1)(2) of the Act provides for a financial contribution to an


48
Section 102 (1).
49
Ibid (2).
50
Ibid (3)
environmental remediation fund set up by the Authority for the restoration or management of

negative environmental impacts of the licence or lease, being a prerequisite for the award of the

oil licence or lease and before the approval of the environmental management plan by the

Authority51. The amount to be contributed is based on the size of the operations and the level of

environmental risk that may exist in the operations 52. A licensee or lessee is to assess the

environmental liability annually and increase the financial contribution to the satisfaction of the

Authority53. An independent assessor may be appointed by the Authority if it is dissatisfied with

the licensee or lessee’s assessment to conduct the valuation and to determine the financial

contribution54. However, where a licensee or lessee fails to rehabilitate or manage the negative

impact of their activities on the environment, the Authority after written notice to the licence

holder may apply the fund to rehabilitate or manage such negative environmental impact in the

affected part of the country55. In addition, section 104(1)(2)(3)(4) of the Act provides that a

licensee, lessee, or marginal field operator can only flare or vent natural gas in the case of

emergency, an exemption granted by the Commission as an acceptable safety practice

established under this regulations56. Under section 107 of the Act, a licence or lessee can flare

where it is required for facility start-up or strategic operational reasons such as testing the gas

equipment or plant, and failure would occasion a fine as prescribed by the Commission, which

shall be paid in the same manner as royalties to the government by oil firms. The fine is not

eligible for cost recovery or tax deductibility 57. The fees received as gas-flaring penalties are to

be utilized for environmental remediation and relief of the host communities of the settlers on

51
Section 103 (1)
52
Ibid (2)
53
Ibid (5)
54
Ibid (6)
55
Ibid (4)
56
Section 104 (1)
57
Section 107 (a)
which the fines are imposed. The penalties prescribed by the Flare Gas (Prevention of Waste and

Pollution) Regulations are to be complied with by defaulting oil firms.

Section 105 provides that the licensee or lessee shall pay a penalty prescribed pursuant to the

flare Gas (prevention of waste and pollution) regulation 2018. The commission shall have the

right to take free of charge natural gas that is destined for flaring at flare stack 58. Section 106(1)

provides for the installation of metering equipment by the licensee or lessee in every facility

where natural gas may be flared or vented before the commencement of petroleum production,

and non-compliance attracts a fine that the Authority may prescribe 59. Under section 107 of the

Act, a licensee or lessee producing natural gas shall, within 12 months of the effective date,

submit a natural gas flare elimination and monetization plan to the Authority in conformity with

the regulations formulated under the Act. However, weak enforcement is a challenge against its

efficiency.

4.2.3 Criminal Code Act CAP. C38 LFN 2004

Pollution is classified as a crime under the penal code. Sections 245 and 247 forbid any action

“that vitiates the atmosphere in any area to make it poisonous to the health of individuals in

general inhabiting or carrying on business in the neighborhood or walking along a public way...”

Any perpetrator faces a six-month prison sentence. This provision contains flaws of its own. For

instance, the wrongdoer can only be punished if the vitiation is harmful to human health. As a

result, the emphasis is on human health rather than the environment. This means that as long as

human health is not jeopardized, no crime is committed, regardless of how much of the

atmosphere is destroyed. This provision must be updated to comply with the global appeal for

58
Section 105
59
Section 106
environmental protection and sustainability. Again, there is no option for a fine in this clause,

even though approximately 80% of this offence is perpetrated by corporate bodies such as

international oil firms, which are difficult to imprison. The terms “corrupts,” “foul,” or “render it

less fit for the purpose for which it is ordinarily used” are too general and may require scientific

evidence to prove beyond a reasonable doubt. No record of any oil firm that pollutes the Niger

Delta area daily has been charged for infringing this law in Nigeria.

4.2.4 Associated Gas Reinjection Act (AGRA) 1979.

The Nigerian Military Government passed the Associated Gas Reinjection Act (AGRA) in an

effort to address the issue of gas flaring immediately. The development of a regulatory

framework to prevent gas flaring in Nigeria was made possible by this, which was the country's

first sincere legislative initiative. The Act's main objective was to gradually phase out gas flaring

in Nigeria. It is claimed in its recital that the Act is intended to require all oil and gas producing

companies in Nigeria to submit a preliminary plan for gas re-injections and detailed plans for its

implementation60. Despite the rules of Regulation 42 of the Petroleum (Drilling and Production)

Regulations enacted under the Petroleum Act 61, every business producing oil and gas in Nigeria,

shall not later than 1 April, 1980 submit to the Minister a preliminary programme for

(a) Schemes for the viable utilisation of all associated gas produced from a field or groups of O

60
K. Ebeku, Oil and the Niger Delta people in International Law: Resource Rights, Environmental and Equity Isssues
(Rdiger Koppe Verlag, Koln 2006) p.204.
61
This Section which deals with the utilization of natural gas is sequel to the Petroleum Drilling and Production
Regulation 1969 which states that; ‘Not later than five years after the commencement of the production from the
relevant area, the Licensee or Lessee shall submit to the Minister any feasibility study, programme or proposals
that he may have for the utilization of any natural gas, whether associated with oil or not, which has been
discovered in the relevant area’
(b) Project or projects to re-inject all gas produced in association with oil but not utilised in an

industrial project’.

The Act placed a duty on oil companies to submit detailed programmes and plans for

implementation of gas re-injection no later than 1 October 198062.

Section 3 of the Act goes further to state as follows:

1. Subject to subsection (2) of this section, no company engaged in the production of oil or gas

shall after 1st January, 1984 flare gas produced in association with oil without the permission of

in writing of the minister.

2. Where the minister is satisfied after 1st January, 1984 that utilisation or re-injection of the

produced gas is not appropriate or feasible in a particular field or fields, he may issue a

certificate in that respect in the production of oil or gas.

(a) Specifying such terms and conditions, as he may at his discretion choose to impose, for the

continued flaring of gas in the particular field or fields.

(b) Permitting the company to continue to flare gas in the particular field or fields if the company

pays such a sum as the minister may from time to time prescribe for every 28.317 standard cubic

metres (SCM) of gas flared. Pursuant to sections 3 and 5 (ministerial prerogative) of the

Associated Gas Re-Injection Act 1979, that the Associated Gas Reinjection (continued Flaring of

Gas) Regulations 1984 was enacted. This regulation which took effect from January 1, 1985

provided exemptions from the prohibition on gas-flaring under the 1979 Act. It stipulates

conditions for issuance of a certificate by the Minister for the continued flaring of gas in a

62
Section 2(1), Associated Gas Reinjection Act 1979.
particular field or fields. The implication of the regulations is that the Minister can only issue a

certificate permitting a company to continue flaring gas if the following conditions are met: a)

where more than 75% of the produced gas is effectively utilised or conserved;

b) Where the produced gas contains more than 15% impurities that render the gas unsuitable for

industrial purposes;

c) Where an ongoing utilisation programme is interrupted by equipment failure;

d) Where the ratio of the volume of gas produced per day to the distance of the field from the

nearest gas line or possible utilisation point is less than 50,000 SCF/KM: and it is technically

impossible to re-inject the gas in the field; and

e) Where the minister orders the production of oil from a field that does not satisfy any of the

conditions specified in these regulations.

Provided that such failures are not considered too frequent by the Minister and the period of

anyone interruption is more than three months. It must be pointed out here that these clauses had

the effect of exempting 86 out of 155 fields from the anti-flaring provisions of the Associated

Gas Reinjection Act 197963. The remaining fields were subject, under this regulation, to

monetary penalty64.

According to s.4 (1) of the Associated Gas Reinjection Act 1979, the penalty for noncompliance,

was forfeiture of concession. It states thus:

63
Omorogbe, Oil and Gas Law in Nigeria (2003), p.58.
64
Paul Samuel Tamuno, ‘A sequential analysis of Nigeria's attempts to end gas flaring’ (2018), International Energy
Law Review (I.E.L.R.) 1, 17-26.
“Where any person commits an offence under section 3 of this Act, the person concerned shall

forfeit the concessions granted to him in the particular field or fields in relation to which the

offence was committed”.

Section 4(2) provided further that:

“The minister may withhold all or part of the entitlements of any offending person towards the

cost of completion or implementation of a desirable reinjection scheme or the repair or

restoration of any reservoir in the field in accordance with good oil field practices”.

It can be assumed that the Regulation reversed the original intention of the Associated Gas

ReInjection Act, which was intended to prohibit gas flaring. As noted earlier, one striking feature

of the Act is the permission given to oil companies to continue to flare gas on the payment of

minimal fees. The Associated Gas Re-Injection (Amendment) Act 65 introduced a penalty of 2

Kobo (equivalent to US$0.0009 in 1985) against the oil companies for each 1000 standard cubic

feet (scf) of gas flared at any place. This amount was further increased to 10 Naira (US$11) per

1000 standard cubic feet of gas in 1998 66. As further noted by Ebeku the amended law permits

oil companies to continue flaring in particular field or fields, subject to payment of such sums as

the minister may from time to time prescribe for every 28.317 standard cubic metre (scm) of

flared gas67.

4.2.5 Associated Gas Reinjection (Continued Flaring of Gas 1984) Regulation

This is the First regulatory framework aimed at promoting anti gas flaring policies in Nigeria

was The Associated Gas Reinjection Act 1979. The promulgation was in response to the
65
Amended by Decree No.7 of 1985
66
Otoito (note 9) at 27
67
Ebeku, (Note 104).
criticisms against gas flaring in Nigeria, as a means of penalising and phasing out flaring of

associated gas in the country. This regulation amends the Associated Gas Reinjection Act 1979

(repealed). The aim is to re-inject all gas produced in connection with oil and not utilised in an

industrial project. Defaulters are to forfeit concessions granted in the field where gas is flared,

and repair and restorative the reservoir where gas is flared. The Act provided limited exemptions

for flaring in certain circumstances. The regulation prescribes the condition under which

issuance of a certificate for continued flaring of gas under section 3(2) of the Associated Gas

Reinjection Act is required. The regulations allow gas flaring if more than 75% of the produced

gas is effectively utilised or conserved, more than 15% of the gas produced contains impurities,

which render the gas unsuitable for industrial purposes; if an ongoing utilisation programme is

interrupted by equipment failure, not longer than three months; or if the ratio of the volume of

gas produced per day to the distance of the field from the nearest gas line or possible utilisation

point is less than 50,000 SCF/KM and the gas-to-oil ratio of the field is less than 3500 SCF/bbl

(hence, it is not technically advisable to re-inject the gas in that field unless the Minister deems

fit).

The shortcoming of the Act is that it introduces a penalty of two kobo’s per 1000 standard cubic

feet (SCF) of gas flared at any place where the authority to flare was not granted was introduced

under the Act. This amount was increased to 50 kobo’s per 1000 SCF of gas in 1990, and the

amount was further increased from 1998 to NGN 10 (USD 0.02). The penalty was further

increased in 2008 to NGN 3.50 (USD 1452.92) per 1000 SCF of gas flared.

This penalty was so insignificant that companies preferred to pay the penalty rather than stop gas

flaring. This Act was, however, further amended in 1992 through the introduction of the

Association Gas Framework Agreement (AGFA). The Associated Gas Reinjection Act was
amended in 2010 by the National Assembly and reintroduced as the Associated Gas Reinjection

Amendment Act of 2010. Section 3(1) of the amendment set 31 December 2012 as the deadline

for abatement of gas flaring in section 3(2) but went ahead to provide a new section that

permitted companies to continue the flaring of gas on the payment of a temporary gas flaring fee

of USD 5.00 (NGN 2075.60) per 1000 SCF of gas flared in section 3(2) (b). However, this

amendment is yet to be signed into law in Nigeria.

4.2.6 Flare Gas (Prevention or Waste and Pollution) Regulation 2018.

Following the failure of the Associated Reinjection Act and its Regulation of 1979 to completely

address the issue of gas flaring as the penalty for flaring gas was so insignificant to actually deter

gas flaring in Nigeria, the federal government in 2016 approved the Nigerian Gas Flare

Commercialization Programme (NGFCP) and in 2018, the minister of petroleum resources in

reliance on section 9(1) Petroleum Act 1969 and Section (5) of the Associated Gas Reinjection

Act issued the Flare Gas (Prevention Of Waste And Pollution) Regulation Of 2018. The

Regulations focus on the reduction of the environmental and social impacts of gas flaring,

prevention of waste of natural gas resources and creation of social and economic benefits from

gas flare capture68.

The Regulation aims to incentivize the commercialization of flare gas following the zero royalty

regime but discontinue gas flaring through the imposition of a new flaring regime. In order to

actualize the nation’s associated gas, flare out target, the Federal Government decided to assert

and enjoy its rights enshrined in section 1 of the Petroleum Act and paragraph 35(b) (i) of the

First Schedule to the Petroleum Act, to take associated gas at the flare free of cost and without

68
Regulation 1.
payment of royalty. This right, which is more than 5 decades old, applies to any natural gas

discovered under petroleum leases and licences issued pursuant to the Petroleum Act.

Under the 2018 Regulations, the Minister may through a ‘Permit to Access Flare Gas’ authorise

a “Qualified Applicant” to take flare gas on behalf of the Federal Government at any flare site

specified in the Permit69. A Permit to Access Flare Gas can be revoked where: its holder fails to

comply with the terms and conditions under which it was granted; it is found to have

intentionally provided inaccurate information in connection with the issuance of the permit; or

where any bond issued by the holder for securing the permit has terminated (and has not been

replaced within 30 days of its termination) or where this becomes invalid. A Permit to Access

Flare Gas can also be revoked if its holder is dissolved, made bankrupt or where a gas supply

agreement to be signed between the Federal Government Nigeria and the holder is terminated in

accordance with the terms of the permit 70. The Minister may also revoke any permit granted

where: the permit-holder fails to prepare, maintain or submit log records or reports required in

regulations 15 and 18 in the manner, and within the time, required; or fails to install and maintain

metering equipment in its facilities or is found to have defaulted in supplying accurate or

complete Flare Gas Data, logs or records 71. In either case, the revocation, surrender or loss of

rights relating to the Data Access Permit or Permit to Access Flare Gas will not release their

holders from obligations arising under the regulation, the flare gas bid process or any agreement

made in connection with the regulations or the relevant process 72. The Minister may also suspend

the operations of any producer that continuously breaches regulation 21(2) (or revoke its

licence)73. Furthermore, the Minister can revoke, or refuse to reissue, a certificate authorizing a
69
Templars Integrated Gas Practice, Flare Gas (prevention of waste and pollution) Regulations 2018. P.4, (pp 1-11).
70
Regulation 9(1).
71
Regulation 22.
72
Regulation 22.
73
Regulation 21(2).
producer to flare gas under s.3(2) of Associated Gas Reinjection Act 1979 where the producer is

found to have breached any of the provisions of 2018 Regulations or "commercialises" gas

without having regard of regulation 3 of 2018 Regulations74. The 2018 Regulations can be

described as a promising approach to resolving Nigeria’s gas flaring issues. Its advantage is that

there is now a move from the reliance on sanctions and deadlines to a more proactive capture and

"commercialised" approach75.

The gas capture approach embodied in the regulation 2018 potentially creates a win-win

situation for relevant stakeholders and petroleum firms, as well as the Federal Government.

Additional revenues would also be generated from the commercialization of flared gas, increased

payments and, where necessary, fines while the commercial utilisation of flared gas would be

compatible with Nigeria’s "gas to power" programme, contributing to the resolution of power

outages. The regulations 2018 clearly offers hope for the ending of gas flaring in Nigeria.

4.2.7 Climate Change Act 2021.

The petroleum industry in Nigeria contributes significantly to both climate change and

greenhouse gas emissions through gas flaring. Therefore, the Climate Change Act offers a

framework for achieving low greenhouse gas emissions (GHG), inclusive green growth, and

sustainable economic development by, among other things, setting a target for the year 2050–

2070 for the attainment of net zero GHG emissions in accordance with Nigeria's obligations

under international climate change agreements76.

74
Regulation 14.
75
Tamuno, (Note 108) at 5.
76
Section 1, Climate Change Act 2021.
Section 19 of the Act mandates that the Federal Ministry of Environment set Nigeria's carbon

budget in connection to gas flaring. A country's allowed carbon emission for a specific time

period is known as its carbon budget. The budgets which usually have a five-year circle are put

in place with the overall aim of ensuring that Nigeria achieves its net zero carbon emission target

between (2050 –2070). Each budget circle is to be submitted to the Federal Executive Council

for approval before implementation77. Section 20 mandates the secretariat to set up an action plan

(lasting a five-year circle) to ensure amongst other objectives, that Nigeria’s emissions are in line

with her carbon budgets, prescribing measures for reviewing levels and trends of greenhouse gas

emissions.

4.3 Institutional Framework.

4.3.1 NIGERIAN NATIONAL PETROLEUM CORPORATION (NNPC).

NNPC was initially established on 1 April 1977 as a merger of the Nigerian National Oil

Corporation and the Federal Ministry of Petroleum and Energy Resources 78. By the virtue of the

enactment of the Petroleum Industry Act, NNPC has been established as a limited liability

77
Section 19 (3).
78
Nwokeji.G. Ugo (2007), The Nigerian National Petroleum Corporation and the Development of the Nigerian Oil
and Gas Industry: History, Strategies and Current Directions (PDF). Rice University: The James Abaker III Institute
for Public Policy, Rice University, Pg. 16.
corporation. The NNPC is a statutory corporation that engages in commercial oil and gas

activities. The scope of activities of the NNPC ranges from exploration, production, refining,

transportation, distribution, and supply of oil and gas products. The NNPC has various

subsidiaries in which it operates in the oil and gas sector. Some of the NNPC subsidiaries are;

1. The Nigerian Petroleum Development Company (NPDC) - this subsidiary company of the

NNPC engages in the business of oil exploration and production.

2. National Petroleum Investment Management Services- this subsidiary company of the NNPC

is responsible for administering the investments of the Federal Government in the upstream

petroleum operations conducted under joint ventures, product sharing contracts, and other

petroleum arrangements with international oil companies.

3. The Petroleum Product Marketing Company Limited (PPMC)- it is responsible for the

transportation of crude oil to the various refineries and also the transportation of petroleum

products to depots situated in different parts of Nigeria.

The role of NNPS still remains the same as the majority include; the inspectoral and commercial

responsibility, which allows it to manage and overlook the operations of its subsidiaries within

the oil and gas industry and the control of Nigeria’s participatory interest in all the joint ventures

agreement that Nigeria signed with different multi-national corporations in the oil and gas

sector79.

Federal Ministry of Environment (FMENV)

79
Emeka Nnanna Ojijiagwo, Development of a Sustainable Framework to Manage Flare Gas in an Oil and Gas
Environment: A Case Study of Nigeria 2017, Pg. 28 pp. 1-262.
This institution can be seen as the supreme authority over environmental matters such as gas

flaring and pollution control in Nigeria 80. It was established in 1999 to replace the Federal

Environmental Protection Agency. Federal Ministry of Environment as well took over the

responsibilities of the oil and gas control unit of the Department of Petroleum Resources (now

NURPC) who monitors and implements oil and gas related regulations. The institution oversees

the achievement of the international obligations and national commitments of the government,

and as part of its duty, drafted the National Environmental Management Act on environment

which incorporated the government policy on gas flaring phase-out and the strategies for gas

utilisation and capture.

4.3.2 The Department of Petroleum Resources (DPR).

The DPR is responsible for the regulation of the upstream and downstream sectors of the oil and

gas industry in Nigeria. The functions of this agency are highlighted below;

1. The DPR is responsible for the overall supervision of oil and gas activities carried out by

companies engaging in oil and gas operations;

2. The department is responsible for issuing and granting licences, permits, authorization, and

approval in the oil and gas industry.

3. The department is responsible for monitoring and controlling oil industry operations to

guarantee compliance with the national and public policies.

4.3.3 National Environmental Standard Regulation (Establishment) Agency (NESREA) Act

2007.

80
Okafor (note 13).
NESREA has the mandate to enforce all environmental laws in Nigeria including international

agreements or conventions on environmental protection. This is in consonance with the

requirement and strategy of the National Policy on Environment, which requires the government

to put in place legal institutions to protect and manage the Nigerian environment. The Agency is

authorised to enforce compliance with laws, guidelines, policies and standards on environmental

matters, and prohibits the release of hazardous substances into the environment without lawful

permission and authorization. The Agency is also authorised to undertake, coordinate, utilise and

promote the expansion of research experiments, surveys and studies by public or private

agencies, institutions and organisations concerning causes, effects, extent, prevention, reduction

and elimination of pollution and such other matters related to environmental protection and

natural resources conservation other than in the oil and gas sector as the agency may, from time

to time, determine. Although NESREA has a wide mandate to preserve the environment, the

agency's power does not cover oil and gas matters. Similarly, its power to enforce compliance

with international conventions and protocols is subject to domestication of such conventions.

4.3.4 The National Oil Spill Detection and Response Agency (NOSDRA).

It is also one of the institutions responsible for the protection of the environment. However, it

deals mainly with oil spills and ensures that the oil industries comply with the best practices in

their operations. Niger Delta Development Commission was established to tackle environmental

pollution problems associated with the Niger Delta of Nigeria (hereinafter called NDDC Act).

The Commission is empowered to formulate policies, guidelines for the Niger Delta Area and to

plan and implement projects and programmes for the sustainable development and other
environmental problems in the Niger Delta area. Although it appears that the agency has wide

powers, it lacks political will, it can only make recommendations and not necessarily enforce.

4.3.5 The Ministry of Petroleum Resources

The Ministry of Petroleum Resources has the overall duty for the supervision and regulation of

the oil and gas industry. The ministry also formulates, coordinates, and implements Federal

Government policies for the oil and gas sector.

The Minister who heads the Ministry has the powers to issue licences for the oil and gas

operations per the Petroleum Act. Such licences include the oil prospective licence (OPL) and

the oil mining lease (OML).

4.3.6 Nigeria Gas Company Limited (NGC).

The Nigeria National Petroleum Corporation (NNPC), currently NNPC LTD, owns the Nigeria

Gas Company Limited (NGC) in its entirety, With a N5,000,000 authorised share capital, it was

established as a limited liability corporation. In essence, NGC is in charge of creating a

productive gas industry that would fully meet domestic energy needs and provide industrial

feedstock needs through a nationwide integrated pipelines network. The corporation is also

prepared to establish Nigeria's footprint in the global natural gas market, especially in the West

African sub-region, through the export of gas and its derivatives. As the NNPC's gas division, its

responsibilities include: transporting and distributing natural gas from producing fields to

consumers, advertising natural gas and its derivatives across the country, and within the

ECOWAS sub region, development of a national, integrated pipeline transmission network,

development and recommendation of policies on gas utilisation and pricing to government.


4.3.7 Niger Delta Development Commission (NDDC).

The Niger-Delta Development Commission Act, 2000 also established the Niger Delta

Development Commission (NDDC) to address environmental issues in oil-producing areas and

to battle issues related to the activities of the petroleum industry, as stated in Section 3 and 7 of

the Act. The Oil Mineral Producing Area Development Commission was replaced by this NNDC

commission (OMPADEC). One of its main duties is to strike a balance between the government,

the oil and gas producing firms, and the local communities 81. Additionally, the NDDC deals with

the environmental issues brought on by Nigerian engineering and production-related operations.

As it relates to gas flaring, the provision of section 7(1) of the NDDC Act provides for the

functions of the commission to include inter alia: formulate policies and guidelines for the

development of the Niger- Delta area, tackle ecological and environmental problems that arise

from the exploration of oil mineral in the Niger-Delta area and advise the Federal Government

and the member States on the prevention and control of oil spillages gas flaring and

environmental pollution, liaise with the various oil mineral and gas prospecting and producing

companies on all matters of pollution prevention and control, liaise with the various oil mineral

and gas prospecting and producing companies on all matters of pollution prevention and control

and execute such other works and perform such other functions which in the opinion of the

Commission, are required for the sustainable development of the Niger- Delta area and its

people82.

It is worthy to note that the NDDC is controlled by a board, which is made up of members from

all the 9 States in Nigeria that make up the Niger Delta region.

81
Ibid.
82
Section 7 (a-j), NDDC Act 2000.
4.3.8 National Upstream Regulatory Commission (NURPC)

The Nigerian upstream petroleum regulatory commission was established pursuant to the

petroleum Industry Act 2021. The commission which replaced the Department of Petroleum

Resources (DPR) is a body corporate, with perpetual succession and a common seal which has

the power to acquire, hold, and dispose property, sue and be sued in its own name 83. The

Commission is basically responsible for the technical and commercial regulation of the upstream

petroleum operations84. Amongst other objectives, the commission monitors the oil and gas

industry to ensure compliance with relevant regulations and laws, oversees the safety and other

regulations that relate to the exportation and importation of the products into the country,

manages the upstream and downstream sectors in Nigeria petroleum industry, promotes healthy,

safe and efficient and effective conduct of the upstream petroleum operations in an

environmentally and sustainable manner, ensures strict implementation of the national upstream

petroleum operations.

4.4 NATIONAL POLICIES ON THE REGULATION OF GAS FLARING IN NIGERIA.

4.4.1 Nigeria's Policy on Atmospheric Protection.

The National Policy on the Environment (NPE) and the National Agenda 21 85 of Nigeria contain

the policy impetus for the adequate and effective control of air quality standards and natural gas

conservation. The Policy acknowledges that a healthy environment and clean air are both crucial

for human survival as well as the survival of other living things.


83
Section 4 (1) (2), Petroleum Industry Act 2021.
84
Ibid, (3)
85
Full text of the policy can be found on [Link] assessed 15th January 2023.
Accordingly, the Government was committed to, inter alia:

Sustainable [Oil and Gas] exploitation strategy to be adopted nationally will seek to evolve a

realistic national conservation policy that ensures optimum economic returns from oil and gas

exploration and production, while ensuring adequate provisions for strategic reserves and taking

into consideration the welfare of the local inhabitants of the oil and gas producing areas;

* Monitor air emissions and gaseous wastes (CO, CO2, NO, H2S, CH4, SO2, etc.) discharged at

production platforms, refineries, petrochemical and gas processing facilities, through continual

air quality sampling, as well as through daily visual checks for leakages around tanks, pumps,

pipelines and transfer points;

*Promote conservation and restoration of natural formation pressure through elimination of gas

flaring and the production of greenhouse gases;

* Promote complete utilisation of produced Associated Gas, reduce gas flaring and the

production of greenhouse gases86.

4.4.2 Natural Gas Conservation and Development Policy.

According to this policy, among other things, the oil companies must incorporate gas utilisation

terms in their contracts in order to enable oil and gas production sharing contracts (PSCs). The

tactics and techniques they will employ to manage the related gases that will be created in the

field during oil exploration are discussed in this section. In accordance with this policy, the oil

companies (gas producers) will conduct optimisation studies of their respective oil fields, while

NAPIMS (one of the subsidiaries of the Nigerian National Petroleum Corporation) will be in

86
Olaronke Falade, Nigerian Environmental law and the menace of Gas flaring, (2018) Pg.82, pp. 1-124.
charge of the overall planning for gas optimization and the associated fiscal incentives for gas

utilisation (incentives to encourage gas utilisation and transportation to interested third parties) 87.

4.4.3 The Nigeria Gas Flare Commercialization Programme (NGFCP).

The 2017 Nigeria Gas Flare Commercialization Programme intends to lessen the negative effects

of gas flaring on the environment and society in Nigeria in order to protect the environment,

minimize the waste of natural resources, and generate social and economic benefits from gas or

captured gas88. It is required to purchase all gas designated for flare without incurring any costs,

and the gas must be sold at a competitive auction sale. To enter the flare site and collect flared

gas, a permit or licence must be obtained. For the production of ten thousand barrels of oil, the

penalty for non-compliance is two dollars (NGN 830.24) per thousand standard cubic feet. A

further fine of USD 2.50 (NGN 1037.80) per cubic foot is imposed in the event of failure to

make available correct flare figures, refusal to execute the Connection Agreement, and failure to

offer access to the flare site.

It is worthy to note that the Nigerian upstream petroleum regulatory commission (NURPC) has

re-launched the Nigerian Gas Flare Commercialization programme (NGFCP) 2022 aimed at

boosting Nigeria’s commitment to putting an end to routine gas flaring within the next ten years

and to support the goals of energy transition plan89. According to the NUPRC, the NGFCP 2022

presents a hybrid of opportunities for existing bidders and new investors to participate in its first

of its kind flare auction programme90.

87
Ibid.
88
The Niger Delta Development Commission Act 2000 CAP N86 LFN 2004. Available online: Accessed on 18th
February 2023.
89
Templars transcript: Energy & Projects Digest, November 2022.
90
Ibid.
4.4.4 The Nigeria Gas Master Plan 2008.

The 2008 Nigeria Gas Master Plan's objectives are to encourage the use of gas on the domestic

market and to position Nigeria competitively in the international gas export markets in order to

strengthen Nigeria's economy and ensure long-term energy security by putting an end to gas

flaring there91. The Nigerian Gas Master Plan was created in accordance with the National Gas

Policy, and its goal is to develop gas as a resource for national economic development. The goal

of this master plan is to use natural gas in a sustainable way to boost the economy by providing

adequate distribution of gas for home, medium-scale, and commercial usage across the country

and developing a framework for gas pricing that would encourage customers. The design and

approval of this master plan by the federal executive council depends on three primary elements:

Domestic Gas Supply; Gas Pricing Policy and Gas Infrastructure Blueprint. The projects under

this plan will capture the gas; convert the gas into consumable form, store and supply to the three

groups of identified consumers: commercial, industrial and domestic consumers 92. With this plan

the gas market will be harnessed and the expected demand for gas will be met, and the target of

achieving gas flaring phase-out will be achieved. And the plan was borne out by the increasing

demand of the domestic need for energy generation for industrial use and domestic use in form

of fuel or electricity93. In this way millions of tons of gas that should have been flared would be

utilised for economic growth and development of the nation and for export purposes. The gas

will be used to revamp the Nigerian Energy Sector for the production of electricity and also use

in the fertiliser and methanol industries94.

91
72 Associated Gas Reinjection (Continued Flaring of Gas 1984) Regulation. Available online: Accessed on 18th
February 2023.
92
Falade (Note 167) at 90.
93
Ibid.
94
Ibid.
4.5 The Success and Failure of the Laws Enacted to Curb Gas Flaring in Nigeria.

There have been numerous laws enacted to regulate gas flaring in Nigeria. These laws were

enacted as a result of the outcries of the environmental and health hazards caused by gas flaring.

The impact of these laws and enactment has proved to be a success in various areas. The

environment and human health have frequently been a secondary consideration for oil companies

and the Nigerian government. The government is ignorant to stop gas flaring because of the

economic benefits.

The Success of the laws and enactment are as follows:

* It has served as an eye opener to society to see the importance of tackling gas flaring and

putting an end to it as it is unconstitutional, and a breach of fundamental human right to Life.

* These laws have also penalised the flaring of associated gas in the country for instance, the Re-

injection of Associated Act of 1979 prohibited the flaring of associated gas after 1st January

1984 and only allowed specific circumstances on a field by field basis securing a ministerial

certificate. Also default companies are mandated to pay fines.

* The regulatory laws and enactment also provides guidelines in checking the activities of the

oil companies. The laws make sure that the activities of those oil companies are being approved.

Section 102 of the petroleum industrial Act 2021. Section 104 of the Act however provides that a

licensee or marginal field operator can only flare or vent natural gas in the case of emergency.

Section 107 of the Act states that a Licensee producing natural gas shall, within 12 months of the

effective date, submit a natural gas flare examination and monetization plan to the Authority in
conformity with the regulations formulated under the Act. This Section checks oil companies to

prevent them from flaring gas.

There are however failures of these laws enacted to regulate gas flaring in Nigeria. This bothers

on the implementation of the laws and if they have solved the problem of Gas flaring? . These

policies have been merely good on paper and have not been effective enough in regulating gas

flaring in Nigeria.

Factors leading to the failures of the Laws enacted to curb gas flaring are as follows:

I). Non-Enforcement of Environmental Legislations

There has been no effective enforcement of the environmental regulation because of the

overlapping and conflicting Jurisdiction of separate governmental agencies governing Petroleum

and the environment. There is also a presence of non-transparency among the institutions enacted

to curb gas flaring. In respect to infrastructural projects experience has shown that

Environmental Impact Assessment is hardly undertaken prior to the approval of any project or

when taken has no full participation of the communities 95. Even where the requisite impact

assessments were done, the detailed procedure laid down in the Act/Guidelines were usually

flouted especially in respect of consultations.

2). Economic Reliance on one-source of Energy: It would be easier to combat gas flaring in

Nigeria had a diversified economy and the government was not dependent completely on oil

revenues. Official records show the country has twelve different Energy resources 96. This

includes Oil, Natural Gas, Ta-sands, Coal, Nuclear, Hydropower, Fuel-wood, Solar, Bimuss,

95
Falade (note 167) at 111.
96
National Energy Policy document, 2003, Akarakiri, Afonja and Okejiri, 1991.
Wind, Hydrogen and other Renewables97. There is however high dependence on oil and gas

while other energy resources have not been fully exploited 98. The fight to curb gas flaring should

also include policies and regime that favour investments in gas utilisation projects in order to

prevent high dependence on one source of Energy.

3). Political Will and Dependence on Multinational oil companies (MNOC's).

There has been a lack of political will by the Nigerian government as they have demonstrated

failure to exercise its authority and support any measure that would curb gas flaring in the

country. This has been linked with the fear of what its exercise of authority may occasion the

economy when the Multinational oil companies shut down operations for instance in the case of

Gbemre & others V Shell Petroleum Development Company of Nigeria & others 99. The court in

this case held that gas Flaring in the Niger Delta Violated the rights to Life, health and dignity

and issued a court order to refrain from gas flaring. Thus instead of the Nigerian authorities to

enforce the Judgment, it joined Shell in appealing the Judgment of the court, which permitted the

defendant to continue gas flaring. This however calls for the need for a strong political will to

stop the massive flaring of natural gas in the country.

There is also the existence of political docility and drive to enforce existing gas flaring reduction

policies. This is because of the high corruption and lack of patriotism among the state actors,

public officials and three tiers of government who interface with the multinational companies 100.

4). Legislative fallibility.

97
Ibid.
98
Uchenna J.O, 'Moving from Gas Flaring to Gas Conservation and Utilisation in Nigeria: A Review of the Legal and
Policy Regime' (2014) OPEC Energy Review of June 2014 149 – 183.
99
Suit NO: FHC/CS/B/153/2005.
100
Abikoye, Adhekpukoli, Babade (note 70).
The Lack of an efficient and effective legislative framework to address the issue may be the

primary cause of Nigeria's seemingly ongoing gas flaring. Legal frameworks generally have

flaws because they have openings that allow oil companies to exploit them easily 101. First of all,

neither the MNOCs operating in Nigeria nor the government have enforced the rule of the

Petroleum Act 1969 that required every licensee to submit a proposal for the use of gas after five

years of the licence being granted 102. The regulations has been flawed many times because no

penalty was provided for non-compliance103. Again, oil companies were given permission to flare

gas for a period of five years before submitting the feasibility report. The reason for this was that

this particular piece of legislation was enacted when the Nigerian oil industry was in its

emerging stages as at that time. Because of Nigeria’s reliance on the multinational companies

(MNOCs) for capital and oil exploitation technology, the priority of the Nigerian Government

was to attract foreign investors into the Nigerian oil industry and enforcing sanctions for non-

compliance with the Act was considered likely to discourage investors104.

Secondly, the AGRA 1979 can be argued to have permitted the continuation of the gas flaring

where it empowers the Minister to issue a certificate (permit) specifying for the continued gas

flaring in a particular field, if the minister is satisfied that gas re-injection is not feasible 105. The

Act merely grants minister power to issue a permit without strictly setting out criteria for

granting such permit neither limiting the circumstances for the grant nor prescribing the

permissible limit of associated gas to be flared. Moreover, the initial approach taken by the Act

to out-rightly prohibits gas flaring without recognising the lack of required supporting
101
Mohammed J, ‘Examination of the frameworks for combating gas flaring in Nigeria: why has the Nigerian
Government Failed to Combat Gas Flaring’, (2016) University of Maiduguri Journal of Public Law, 4, pages 94-109.
102
Malumfashi (note 176).
103
Ibid.
104
C. Ochieze, "Corporate Complicity in the Extractive Industry: Where does Legal Liability Stand?’ (2007) 5 O.G.E.L.
15.
105
Section 3(2), Associated Gas Re-Injection Act 1979.
infrastructure has been criticised as an approach that wanted to compel gas utilisation by threat

of a stick106.

Similarly, the forfeiture of concession as the likely penalty for gas flaring has also been argued

as being too rigorous107. However, considering the huge economic loss suffered by the Nigerian

government because of the gas flaring as well as its adverse effects on the affected communities,

the penalty imposed could be justified. It is therefore submitted that, if not for the problem of

infrastructure and funding, this Act would have effectively curbed gas flaring in Nigeria108.

Furthermore, the flaring penalty imposed by the Associated Gas Re-Injection (Amendment) was

too insignificant to actually deter gas flaring. One cannot but agree with Fagbohun 109 that the

MNOC’s were simply content with paying the fines imposed by government as penalty for gas

flaring, particularly that the fines are such that they can comfortably afford 110. The fine was

considered inconsequential when compared to the amount that Nigeria actually lost from flaring

annually.

5). Absence of Gas Utilisation Facilities.

While it is possible technologically to end gas flaring in Nigeria, there is the Lack of adequate

industrial facilities required to commercialise abundant gas resources being flagrantly flared. Gas

flaring persists in Nigeria for various reasons among which are: limited number of appropriate

reservoirs conducive for gas reinjection/storage; Low industrial base in Nigeria resulting in low
106
Nnona G, 'New Policy Regime for Gas in Nigeria: A Perspective on Tax and Related Incentives' (2003) 21 Journal
of Energy and Natural Resources Law 285.
107
Yinka Omorogbe, 'Law and investor protection in the Nigerian natural gas industry' (1996) 14 (2) Journal of
Energy and Natural Resources Law 179.
108
Paul S.T. 'Legal Response to Gas Flaring in Developed and Developing Countries: A Comparative Analysis of
Nigeria, United Kingdom and Norway' (Working Research Paper Series No. 2010/14) international Energy law and
Policy Research Paper Series.
109
Fagbohun, Olanrewaju, p. 180.
110
Gas is More Than Just Hot Air’, December, 2001 in Fagbohun, Olanrewaju.
energy consumption; Huge cost of developing major gas transmission facilities; Limited regional

and international gas markets; and Historical inappropriate fiscal and gas pricing policy 111.

Gas technologies to facilitate reinjection, gathering, transmission and distribution in the

domestic, regional and international networks are capital intensive which hinders weak

participation of private investors112.

Although the Nigerian government has enacted policy which encourages investment in gas

utilisation projects and incentives for gas production, the current gas pricing is not adequate and

effective, especially to the domestic users 113. The price of gas for domestic consumers is still

expensive when compared to its alternative petroleum products which the government also

subsidised. Also as the facilities and equipment to utilise and deliver the petroleum products are

readily available and the products can easily be delivered to the consumers, the marketers and

consumers are driven to the petroleum products rather than gas 114. The domestic consumers’ not

using gas more is not encouraging for the investors who would like to invest in the gas utilisation

project for domestic consumption. The reason for the lack of investment in gas utilisation

facilities could be borne from the over dependence on crude oil to the neglect of gas for local use

and exports115. Ultimately, significant investment is required for gas infrastructure to sustain

increase in economic growth. All these have led to the failures of the Laws and enactment to

combat gas flaring in Nigeria.

111
Akinrinola, T., and Owete, F., “Why Gas Flaring Persists – Shell MD”, The Punch, July 26, 2001 cited in Oche,
Patrick. Petroleum Law in Nigeria –Arrangements for Upstream Operations, Jos: Heirs Great Commission, 2004,
p.174.
112
Philip E. Agbonifo, ‘Opportunities, Challenges and Obstacles to Economic growth and Sustainable Development
Through Natural Gas in Nigeria’, (2015) Journal of Sustainable Development in Nigeria Vol. 17, No 5, Pg. 109, pp.
99- 114.
113
Falade (note 167) at 110.
114
Akinbami, J.F.K., Akinwumi, I. O. & Salami A.T, ‘Implications of Environmental Degradation in Nigeria’. (1996).
Natural Resources Forum: A United Nations Journal, 20 (40), 319-331.
115
Agbonifo (note 220).
6). Institutional Inefficiency

One of the primary regulators in monitoring and enforcement of laws which combat gas flaring

in Nigeria is the NNPC. The NNPC also works through the DPR, its inspectoral division 116 is

also a partner in most Joint Ventures agreement with the oil companies.

Its regulatory functions were criticised, as being double a standard 117. It was argued that ‘the

fundamental challenge of this body is the conflict between its commercial and regulatory

functions118. Therefore the dual status of partner-regulator played by the NNPC creates a conflict

of interest and this has led to failures in strict enforcement of the gas flaring regulations against

the oil companies. The failure of NNPC to fulfil its bargain of the joint venture agreement and

the failure of the oil companies to ensure maximum compliance with the standards and

guidelines119 is the reason why gas flaring still persists. It was also argued that DPR experiences

insufficient funding and a lack of enabling powers to initiate and implement regulatory

measures120.

116
The Petroleum Act 1969, Schedule 1, paragraph 24-27.
117
Ibironke T.O, 'Transferring Alberta's Gas Flaring Reduction Regulatory Framework to Nigeria: Potentials and
Limitations' (2007) 44 (4) Alberta Law Review.
118
Paul S.T (note 211).
119
jukwu-Ogba N, 'Legal and Regulatory Instrument on Environmental Pollution in Nigeria: Much Talk, LessTeeth'
(2006) 8 (9) I.E. L.T.L
120
Paul S.T (note 211).
CHAPTER FIVE

5.1 Summary of Findings

This research deals with the issue of gas flaring as it has been one of the major issues the

government has been faced with in the oil and gas sector. Gas Flaring has caused great damage

to the environment, health and economy of the country. The Niger Delta region are the people hit

hard with this Mayhem. This research takes a look into the laws enacted to curb gas flaring and if

the enacted laws are adhered to. It also focused on the challenges and effects that are associated

with gas flaring and the implementation of anti-flaring laws in the Nigerian Oil-Sector.

This study also looked into previous research by different authors about the subject matter and

also proffered solutions to the issues of gas flaring in Nigeria. It clamours the need to attain

sustainable development. The research also offers recommendations on how Nigeria can tackle

the issue of gas flaring and lessen the environmental, health and economy effect and to improve

the gas utilisation in the Nigerian oil sector.

5.2 Recommendations
The negative effect of Gas flaring on human health, the environment and the economy cannot be

over-emphasized. Thus there is a need for sustainable measures to combat Gas flaring and

enhance Energy security in Nigeria's Oil and Gas industry. These measures are as follows:

Utilisation of Gas for Electricity Generation.

Nigeria's electricity industry is in a serious problem. As a result, the Federal Government should

enhance Nigeria's gas-based electricity production. Gas flare metres must be installed

electronically with data recovery procedures, independent reporting, and Nigerian Gas Company

supervision. Nigeria's gas master plan needs to be strictly enforced in order to have zero

tolerance for gas flaring in the industry.

Proper Implementation of the Petroleum Industrial Act 2021.

Our laws' effectiveness is hampered by poor enforcement, which is a given. As a result, section

106 of the PIA 2021 must be strictly enforced. This section states that all facilities where natural

gas may be flared or vented must install, evaluate, and maintain reading metres (metering

equipment to measure the amount of flared natural gas) before the start of petroleum operations.

Additionally, section 108 of the Act requires that a natural gas flare elimination and monetisation

plan be submitted to the Commission within 12 hours.

There should be mechanisms in place for tracking flared gas by oil and gas companies with

consistent flare monitoring and evaluation schemes by the NURPC. Control mechanisms to

benchmark the circumstances in which gas operators can flare without prior approval should be

put in place. This must be clearly defined in the law with effective gas flaring measurement

instruments, such as Fluenta’s FGM 160 Flare Gas Meter, which uses ultrasonic technology for
accurate gas flaring measurement and accurate reporting procedure. This will ensure compliance

with the existing anti-flaring legal regime and it will prevent corruption and other sharp practices

in the sector. The aim is to discourage gas flaring and to promote energy security and

sustainability.

There should also be Implementation of the natural gas flare elimination plan under the

Petroleum Industry Act. For instance, the laws regulating petroleum activities and the contractual

agreements between the Federal Government and the oil companies should be detailed on the

management and elimination of gas flaring. Licences should be issued to new oil companies, and

licence renewals, production sharing arrangements, and joint venture agreements should contain

anti-flaring clauses and gas utilisation clauses in all the projects.

This would eliminate gas flaring with stringent penalties such as the revocation of oil licences or

leases and the payment of monetary damages for non-compliance, as is practised in the selected

case study countries to discourage gas flaring.

It is necessary to benchmark oil production with the capacities for gas utilisation by the

prospective oil and gas companies operating in Nigeria before issuance of relevant operating oil

licence(s) by the NURPC so as to end the gas flaring menace in the sector.

Review and Modification of Existing Laws and Policies relating to Gas Flaring.

It is difficult to develop a vibrant and robust natural gas sector.

Finding reform solutions that balance the interests of producers and consumers for their nation is

crucially dependent on governments. Using both the "carrot" and the "stick" can encourage

adherence to rules while encouraging more energy investment and economic growth. Options
include security measures to protect pipelines and electrical transmission, as well as efficient

monitoring, punishment, and enforcement procedures.

There is a crucial role for the government to create the right incentives. Examples include:

moving subsidies away from diesel to power generation from previously flared gas, ensuring a

fair price for flare gas derived products like LPG or electricity, and ensuring access to pipelines

for captured flare gas. Better accounting of natural resources whether they are hydrocarbon,

forestry or fisheries can help countries understand the national value at risk. This is both waste

associated with flaring gas, but also potentially lost value from environmental damage stemming

from flaring.

Governments should especially examine cases where government subsidies on imported liquid

fuels can be redirected to internal flare capture projects. This reduces outflow of foreign

exchange to import fuel, creates the resource pool to pay for gas development, and can often save

the country money. The legal regimes for combating gas flaring must not be ambiguous; they

must entail proactive monitoring, reporting, and enforcement mechanisms. Fixing a deadline to

end gas flaring must be done by consensus and idem by all stakeholders in the sector for a

feasible date to exterminate gas flaring with stringent penalties for non-compliance after the

agreed dates by all stakeholders in the sector. Also regularly updating of the law to meet up with

those of the countries that have been adjudged heroes in gas flaring eradication and to reflect

latest available technologies that will encourage the use of the most efficient emission reducing

flares is highly recommended.

Independence of the regulatory agencies.


The regulatory and enforcement agencies at the above levels should be guaranteed autonomy,

independence, tenure, defined authority both in funding and manpower and the required

technical expertise to avoid being subject to political control by the government. Also Political

will to prevent gas flaring beyond government interest in the Oil revenue and adoption of

stringent enforcement of gas flaring regulation should be part of the law.

Development of the Oil and Gas Infrastructure.

It is shocking that Nigeria still imports natural gas given the massive amounts of gas reserves in

the nation.

Therefore, it is necessary to upgrade the gas network infrastructure in order to decrease gas

flaring in Nigeria's upstream petroleum sector and to promote gas export, as is done in other

nations including the United Kingdom, Canada, and Saudi Arabia. This can be accomplished by

creating strong domestic gas markets to enhance gas network infrastructure, promote optimal

liquefied petroleum gas utilisation, and change the current gas pricing structures to promote

investments in Nigeria. Gas prices should be appropriate and competitive with other energy

sources as determined by market forces to stimulate investment in the sector and to prevent

waste of resources and to decline environmental risk.

There is the need for more gas pipeline networks to enhance domestic usage of gas and to reduce

its flaring. The Federal Government must also encourage the domestic usage of cooking gas and

other industrial gases in Nigeria. This will promote the commercial utilisation of gas, and it will

reduce gas flaring. Gas flaring is a global threat; hence is a need for robust regulatory and

financial incentives for gas utilisation. There is the need for an explicit Gas master plan for the
construction, networking of a national gas transmission and distribution network since this is sine

qua non for national gas development, monitoring and sustainability in the sector.

5.3 Conclusion

The Issue of Gas Flaring in Nigeria has led to the flow of many Juristic Ink and many laws and

enactment on the Subject. The Nigerian style of Legal institutional framework has been merely

good on paper due to poor Implementation of these laws. In the quest to find adequate regulatory

solutions, we were able to identify the factors which have made the policies to eliminate gas

flaring not reach its goal of eradicating gas flare. These factors includes: the absence of capable

independent and well-funded regulatory, Large scale corruption in the oil and gas sector,

ineffective and non-transparent gas flaring laws, lack of political will and dependence on

Multinational companies, the need for a coordinating spirit amongst not only the Federal, state

and local government but the oil and gas producers as well.

The research also offered ways of utilising flared gas to actualize the zero - gas flaring in

Nigeria. The loop-holes of the various laws to curb gas flare were examined. Suggestions were

made in addressing the loop holes. The study shows that gas flare can be eradicated as stringent

enforcement and compliance to the laws and regulations on gas flaring can serve as permanent

solutions to putting an end to it and making an environment healthier and better.

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