By Emmanuella Opara | November 11th 2026
KEY POINTS
- NNPC Limited says natural gas will remain central to its energy transition and long-term business strategy.
- The company is prioritising gas development, flare recovery and operational emission reduction.
- Inadequate financing, technology and infrastructure remain major obstacles to Nigeria’s decarbonisation efforts.
- NNPC is developing emissions measurement and reporting systems in collaboration with regulators, partners and financiers.
MAIN STORY
The Nigerian National Petroleum Company Limited has identified natural gas development and recovery of flared gas as key priorities in its decarbonisation strategy, as the national oil company seeks to reduce operational emissions while maintaining Nigeria’s energy security and economic interests.
The company’s Manager of Sustainability Strategy, Standards and Policy, Philemon Yilleng, disclosed this during a panel session on decarbonising Africa’s energy value chain at the ongoing United Nations Climate Change Conference, COP31, in Antalya, Türkiye.
Yilleng said NNPC had adopted natural gas as its transition fuel, describing it as a cleaner alternative that would remain central to the company’s long-term energy plans.
“Now, we have been able to identify gas as our transition fuel. So, for us, gas is not just a transition fuel, but our destination fuel. So we want to identify gas as a cleaner alternative for us,” he said.
He explained that the company’s approach was guided by the Petroleum Industry Act, which requires it to balance energy security, environmental responsibility and commercial viability.
As part of its immediate priorities, NNPC is targeting emission reductions, recovery of gas currently being flared and improvements in operational efficiency.
Yilleng said the company was also integrating decarbonisation into its business operations to ensure that environmental considerations informed its activities.
The company has developed policies and frameworks to guide its sustainability programme, including a measurement, reporting and verification system for monitoring emissions and tracking progress.
He said NNPC was working with regulators, joint venture partners and financiers to translate its sustainability commitments into practical changes across its operations.
However, Yilleng identified inadequate financing for gas development as a major obstacle to accelerating Nigeria’s energy transition.
He argued that the country’s gas resources could help address energy poverty, support industrialisation and strengthen energy security if sufficient investment was directed towards their development.
He called for increased financing to support gas as a transition fuel, noting that the resources required to achieve the country’s energy ambitions must be mobilised.
The Managing Director of Carbon Limits, Stephanie Saunier, acknowledged progress made by NNPC in developing its emissions measurement, reporting and verification system over the preceding 12 to 18 months.
She described the company’s progress as considerable but said it needed to move towards actual field measurements to establish the credibility of its emissions data.
Similarly, the Assistant Director and Head of Environment Management and Sustainability at the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Celina Evbuomwan, identified inadequate technology, infrastructure and financing as major constraints to emission reduction.
She said insufficient and scattered infrastructure around gas-producing facilities had limited operators’ ability to recover flared gas and channel it into electricity generation and industrial applications.
THE ISSUES
NNPC’s decision to position natural gas at the centre of its energy transition strategy reflects the challenge of balancing environmental commitments with Nigeria’s dependence on hydrocarbons for energy supply and economic activity.
Although gas produces lower carbon emissions than coal and some other fossil fuels when burned, it remains a fossil fuel. Its continued use therefore presents questions about how the country will balance near-term energy needs with longer-term decarbonisation objectives.
Financing is another major concern. Yilleng identified inadequate investment as a constraint to gas development, while the NMDPRA representative pointed to gaps in technology and infrastructure.
Without sufficient pipelines, processing facilities and other supporting infrastructure, recovering flared gas and delivering it to power plants and industries will remain difficult.
The credibility of emissions reporting is also important. While NNPC has developed a measurement and verification framework, the need for actual field measurements highlights the importance of reliable data in assessing the company’s environmental performance.
WHAT’S BEING SAID
“For us, gas is not just a transition fuel, but our destination fuel.”
Philemon Yilleng, Manager, Sustainability Strategy, Standards and Policy, NNPC Limited.
“Credible data is more like a journey than just an end.”
Stephanie Saunier, Managing Director, Carbon Limits.
WHAT’S NEXT
NNPC is expected to continue working with regulators, joint venture partners and financiers to strengthen its emissions monitoring framework, improve operational efficiency and advance gas development and flare recovery.
The availability of financing, technology and supporting infrastructure will remain important to the implementation of these plans.
BOTTOM LINE
NNPC is placing natural gas, flare recovery and operational emission reduction at the centre of its decarbonisation strategy. However, financing shortages, infrastructure limitations and the need for credible emissions data remain key challenges to translating its commitments into measurable results.
