THE House of Representatives on Thursday, December 5, passed for second reading, a bill for an act to prohibit gas flaring, encourage commodity utilisation and provide for penalties and remedies for gas flaring violations.
The bill sponsored by Babajimi Benson, seeks to prohibit the flaring and venting of natural gas, except in strictly regulated circumstances, while encouraging the utilisation of gas resources to foster economic growth and energy generation.
The proposed legislation aims to mitigate the environmental, health, and economic impacts of gas flaring, aligning Nigeria’s oil and gas operations with international climate change commitments.
Whoever violates the proposed law would face stringent penalties, including fines of $5 per 1,000 standard cubic feet of gas flared and potential suspension of operations for repeat violations.
Leading debate on the general principles of the bill, Benson said gas flaring had plagued Nigeria for decades, leading to severe environmental degradation, public health crises, and economic losses contributing to greenhouse gas emissions, global warming, and acid rain, exacerbating climate challenges.
The lawmaker said public health impacts of the practice are equally dire, as pollutants from gas flaring cause respiratory and cardiovascular diseases, particularly among residents of communities close to flaring sites.
He said economically, flaring results in the waste of a valuable resource that could otherwise be harnessed for energy generation or exported to generate revenue.
According to the chairman, House Committee on Defence, the bill is designed to address those issues while bringing Nigeria in line with global standards such as the Paris Agreement on climate change.
“The bill provides for a comprehensive prohibition of gas flaring except in emergencies or when explicitly authorised by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). Operators are required to submit and implement Gas Utilisation Plans, detailing how gas that would otherwise be flared will be captured, processed, or commercialised.
“Offenders who violate these provisions face stringent penalties, including fines of $5 per 1,000 standard cubic feet of gas flared and potential suspension of operations for repeat violations. Furthermore, the bill ensures that communities affected by gas flaring are entitled to compensation and environmental restoration, creating a mechanism for redress…
“The Anti-Gas Flaring (Prohibition and Enforcement) Bill, 2024, is a timely and necessary response to one of Nigeria’s most pressing environmental challenges. Its provisions are both practical and forward-looking, addressing immediate concerns while laying the groundwork for a sustainable future,” he added.
The ICIR reported that the House of Representatives resolved to recover the over $9 billion gas flaring fines that the Federal Government had imposed on erring local and foreign companies operating in the Nigerian oil and gas industry.
The House, through its ad-hoc committee investigating gas flaring in the country, also resolved to investigate the $277.2 million disparity in the gas flaring penalties recorded by the National Oil Spill Detection and Response Agency (NOSDRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.