Nigeria currently grapples with unpaid gas royalties amounting to $559.8 million and unpaid gas flare penalties totaling $828.8 million, as reported by the Nigerian Extractives Industries Transparency Initiative (NEITI). The Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji, highlighted these figures during the 2nd German-Nigerian Symposium on Green Hydrogen in Abuja.
Despite being a significant global gas producer, Nigeria encounters challenges due to continuous gas flaring activities. The unreconciled figures from the 2021 NEITI report indicate a substantial amount of unpaid gas royalties and flare penalties, posing obstacles to global zero emissions initiatives.
This ongoing issue was previously addressed in July 2023 by Hon. Tajudeen Abass, the Speaker of Nigeria’s Federal House of Representatives, who revealed an annual loss of $2.5 billion due to gas flaring. The flared gas represents potential revenue that could have been generated through its sale or utilization.
Patrick Mgbebu, Chairman of the Gas Monitoring Committee at the Revenue Mobilization Allocation and Fiscal Commission (RMAFC), informed the House that the Federation Account lost over $277 million in gas flaring penalties between 2020 and 2022.
At the Hydrogen conference, Dr. Markus Wagner, Country Director of GIZ Nigeria & ECOWAS, stressed the transformative potential of green hydrogen for reducing carbon emissions and diversifying energy sources. He emphasized the importance of data and information in facilitating a successful energy transition, suggesting Nigeria position itself as a technology leader to capitalize on the opportunities presented.
Ekperikpe Ekpo, Nigeria’s Minister of Gas, highlighted the country’s commitment to achieving Net Zero Emission by 2060. He identified hydrogen as a viable pathway for decarbonizing the energy sector, urging substantial investments and a conducive climate for investors.
Ambassador Annett Günther, representing Germany in Nigeria, affirmed the commitment of both countries to drive hydrogen production and utilization, reflecting a shared dedication to advancing hydrogen-related initiatives.
