Nigeria must reduce methane emissions in the oil & gas sector: NRGI

Nigeria needs to take immediate action to prevent increasing methane emissions from the oil and gas sector, said the Natural Resource Governance Institute (NRGI) in a new report.

The NRGI recently published a report that noted this must be in place as the Nigerian government continues to expand domestic gas use and exports.

With the world’s ninth-largest gas reserves, Nigeria is a major methane emitter, accounting for 16 percent of sub-Saharan African methane emissions between 2010 and 2020.

“Unchecked oil and gas sector methane emissions threaten to exacerbate the climate change crisis, harm community health and safety, and undermine Nigeria’s capacity to trade in the global market and leverage the proceeds to sustain its economy,” the report said.

“Nigeria needs a robust methane emissions framework to address technical and regulatory gaps across the oil and gas value chain. Frameworks should deliver tailored monitoring reporting and verification (MRV) systems that combine satellite and leak detection and repair (LDAR) technologies, create synergy among stakeholders, and incentivise methane emissions reduction.”

The report depicts the landscape of methane emissions in Nigeria, highlighting socio-economic and environmental costs, opportunities, reduction efforts and trends, its current emissions profile and barriers to progress.

Emissions reduction in the oil and gas sector

Tengi George-Ikoli, a senior programme officer at the NRGI, told Gas Outlook that the Nigerian government has declared a decade of gas to translate its 200 trillion cubic feet (tcf) of gas reserves into domestic energy needs and generate revenues for the government through exports.

She said that ramping up gas sector activities translates to increased gas infrastructure, including pipelines, stations, distribution networks, storage tanks, and the potential for gases to escape into the atmosphere, unintentionally and otherwise.

George-Ikoli noted that upstream, midstream and downstream regulators must adopt regulations and guidelines across the oil and gas value chain that ensure effective monitoring, reporting, and verification of emissions to enable tracking and penalisation.

“Companies and new asset owners must adopt the strictest environmental standards for purchasing divested petroleum assets,” she said.

Magdalene Osakue, a researcher at the International Institute of Tropical Agriculture (IITA) in Nigeria told Gas Outlook that strengthening methane emissions reduction in the oil and gas sector is crucial for Nigeria to meet its climate goals. She said that by reducing the overall greenhouse gas footprint, Nigeria can demonstrate leadership in global climate action.

Averting a climate crisis

George-Ikoli said that to avert the climate crisis requires Nigeria to reduce emissions in line with its Nationally Determined Contributions (NDCs). She said the county must adopt methane emissions reduction strategies if it is to meet its long-term decarbonisation commitments while ramping up gas for industrialisation and meeting its domestic energy needs. 

“Oil producing communities living in riverine areas suffer from flooding and sea encroachment due to the climate change crisis. Communities are at risk of respiratory and cardiovascular defects if appropriate methane emission reduction strategies are not adopted.”

Osakue said methane traps heat in the atmosphere at a higher rate than carbon dioxide, leading to rapid temperature increases. She said that if left unchecked, these emissions will heighten the climate crisis, leading to more extreme weather events such as rising sea levels, floods, droughts, and other environmental impacts.

“Beyond the environmental implications, methane emissions also pose serious risks to community health. It is often released alongside other harmful pollutants, such as volatile organic compounds (VOCs) and hazardous air pollutants (HAPs), which can degrade air quality and contribute to respiratory illnesses, cancer, and other health issues in communities near oil and gas operations.

“Furthermore, methane leaks can increase the risk of explosions and fires, posing a direct threat to the safety of workers and nearby residents. Therefore, reducing methane emissions is not only an environmental necessity but also a critical measure to protect public health and safety.”

Methane emissions reduction technologies

George-Ikoli said Nigeria aspires to leverage its fossil fuels for export to achieve development goals and fund its energy transition. She said if Nigeria is to achieve that goal, it would need to reduce its emissions to have access to foreign markets for its petroleum products.

“A point of reflection for the government would be the EU methane emissions guidelines coming  into force in January 2027. That regulation penalises EU petroleum importers that have high emissions either through penalties, fines or exclusion from the market. Losing access to the EU market which accounts for 43 percent of Nigerian crude oil exports and 60 percent of liquefied natural gas (LNG) exports in 2023 could have devastating effects for the Nigerian economy.”

Osakue noted that given methanes’ significant impact on climate and community well-being, the Nigerian government should prioritise investments in methane emission reduction technologies. By doing so, she said the government can ensure that the oil and gas sector adopts best practices for monitoring, detecting, and mitigating methane leaks.

“Technologies such as advanced infrared cameras, continuous monitoring systems, and improved sealants can drastically reduce methane emissions and are essential tools in the fight against climate change. Investing in these technologies will also have long-term economic benefits.

“This is because captured methane can be utilised as a valuable energy resource, turning a harmful emission into a profitable product. Additionally, the adoption of methane reduction technologies can position Nigeria as a leader in sustainable energy practices, thereby attracting international investments and support.”

“By addressing the dual threats of climate change and community health risks, and by prioritising investments in innovative technologies, Nigeria can take a decisive step toward a more sustainable and prosperous future,” she concluded.

Challenges to methane emissions reduction

The NRGI report noted inaccurate data and insufficient transparency, opaque and disincentivised industry, and regulatory gaps as challenges to reducing methane emissions.

“Data inaccuracy and transparency deficits in Nigeria’s oil and gas industry stem from significant measurement and detection challenges. Establishing robust baselines and targets requires accurate measurement, which has been elusive in Nigeria.

“Reliance on inconsistent methodologies and industry self-reporting without data triangulation undermines the credibility of methane emissions data. Independent and empirically verified measurements are scarce, leading to a ten-fold variance between the lowest and highest estimated methane emissions reported by the government and third-party sources.”

The report recommends that oil and gas companies, including the Nigerian National Petroleum Corporation Limited (NNPCL), prioritise investments in methane emissions reduction technologies and reflect global environmental commitments in local operations. It further states that the government, oil and gas companies, civil society, and international partners can all help Nigeria shrink its methane footprint.

“The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) should ramp up the Nigerian Gas Flare Commercialisation Plan (NGFCP) to incentivise oil and gas companies’ methane abatement commitments and strategies.

“The National Council on Climate Change, the Federal Ministry of Environment Department of Climate Change and the Federal Ministry of Petroleum Resources should coordinate stakeholders to develop a methane emissions baseline study, actualise national emission reduction targets, establish unified, tailored MRV systems, and strengthen oversight by oil and gas regulators,” the report said.

“Oil and Gas companies’ associations and their members should demonstrate and ensure effective compliance with local regulations,” it added.

They should also adopt important industry commitments such as the Oil and Gas Methane Partnership, Oil and Gas Decarbonisation Charter and Oil and Gas Climate Initiative, it stressed.