Muhammed Abubakar, Reporting
ABUJA — Companies awarded Nigerian gas flare sites risk losing their permits if they fail to put the facilities to productive use, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned.
The Commission Chief Executive, Mrs Oritsemeyiwa Eyesan, issued the ultimatum during a working visit to the Minister of State for Petroleum Resources (Gas), Rt Hon Ekperikpe Ekpo, in Abuja on Tuesday, 8th September 2026.
During the meeting, Mrs Eyesan presented an update on the Nigerian Gas Flare Commercialisation Programme (NGFCP), outlining progress recorded under the initiative and the regulatory measures available to the Commission.
She explained that the NUPRC conducts a performance review one year after each flare gas site is awarded to determine whether the recipient has made meaningful progress towards development and utilisation.
“One year after an award has been granted, the Commission conducts an evaluation to determine whether there has been considerable progress,” Mrs Eyesan said.
She added that awardees who fail to demonstrate adequate progress could face sanctions, including the cancellation of their permits.
“Where there is insufficient progress, the Commission will take appropriate regulatory action, including revocation of the award where necessary,” she warned.
According to the NUPRC chief, the NGFCP has continued to advance despite initial opposition encountered from some industry operators.
She disclosed that 43 flare gas sites were initially identified for allocation, with 27 sites already awarded and implementation activities currently underway.
Nigeria’s Vast Gas Potential
Mrs Eyesan also highlighted Nigeria’s enormous gas potential, noting that the country possesses more than 215 trillion cubic feet (TCF) of proven gas reserves and an estimated overall reserve base of approximately 600 TCF.
“These resources provide a strong foundation for power generation, industrialisation, exports and broader economic development,” she said.
Host Community Progress
On the development of host communities, Mrs Eyesan said the Petroleum Industry Act had established the Host Community Development Trust framework to resolve longstanding grievances and promote the sustainable use of petroleum resources.
She stated that available records showed that the trusts had contributed to a notable decline in oil theft and spills while improving relations between oil companies and their host communities.
The NUPRC boss said implementation of the framework had produced measurable results across the country.
“To date, 173 Host Community Development Trusts have been incorporated, 147 have been funded, over 1,001 projects are currently ongoing, while more than 200 projects have been successfully commissioned across host communities,” she revealed.
Minister Calls for Aggressive Implementation
In his response, Minister Ekpo urged stakeholders to pursue a focused and more aggressive implementation of the country’s gas commercialisation agenda to enable Nigeria to meet its 2030 deadline for ending routine gas flaring.
“The core objective is to add value to our gas resources by converting them into critical products and services. We must move away from environmental pollution and toward productive resource utilisation,” the minister said.
The warning comes as Nigeria intensifies efforts to curb the environmental and economic costs of gas flaring, a practice that has long plagued the country’s oil-producing regions and contributed significantly to greenhouse gas emissions.
