Data from the Department of Petroleum Resources (DPR) and Nigerian National Petroleum Corporation (NNPC) has shown that the Federal Government has lost N523 billion to gas-flaring between 2015 and 2016, The Guardian reports.
While DPR figures showed an $850 million (N306 billion) loss to gas-flaring in 2015, NNPC’s latest report put losses to gas-flaring in 2016 at N217 billion. According to the NNPC, oil and gas firms flared a total of 244.84 billion standard cubic feet of natural gas in the whole of 2016.
Besides, the country has lost $14.298 billion between April 2008 and October 2016, which the International Oil Companies (IOCs) failed to pay as penalty for gas-flaring. In a similar vein, the Nigerian Extractive Industries Transparency Initiative (NEITI), in its latest oil and gas audit report, has said that oil firms operating in the country have failed to abide by the regulation stipulating a penalty of $3.5 for every 1,000scf of gas flared in the country.
Efforts to get the IOCs to state the reasons for non-payment of the penalty were successful as none of them was willing to comment on the issue. But the Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, said that the Federal Government would set up an independent tracking mechanism to ascertain the actual volume of gas being flared in the country.