Reps vow to recover $9bn fines from oil and gas companies over gas flaring
Evasion of gas flare penalties has caused Nigeria a loss of about ₦258 billion yearly.
This was disclosed by the chairman of the Ad-hoc Committee in charge of investigating gas flaring, Hon. Ahmed Munir, during a briefing in Abuja which was attended by stakeholders from the Federal Ministry of Environment, Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), National Oil Spill Detection and Response Agency (NOSDRA), and others.
According to NOSDRA, 19.14 billion standard cubic feet (SCF) of gas was flared by oil and gas companies in January 2023, and 14.04 billion SCF of gas was flared in February 2023, contributing 1.3 million tonnes of carbon dioxide emission.
Offshore companies, on the other hand, flared 25.8 billion SCF of gas valued at $90 million and equivalent to 1.4 million tonnes of carbon dioxide emission.
Despite the FG’s stand on gas flaring and the penalties imposed on the companies, most of them have been evading gas flare penalties, and this has caused Nigeria a loss of about ₦258 billion yearly.
The negative impact of gas flaring on the soil, aquatic ecosystems, and the environment as a whole, has been reported over time as it has contributed majorly to the collapse of rivers and oceans by increasing water temperature.
This has also led to the death of aquatic animals and in turn, destroyed the source of living for people in riverine communities.
The RMAFC chairman, Gas Monitoring Committee, Patrick Mgbebu, revealed that Nigeria would have earned about $12.4 billion if the gas was sold, and not flared.
Speaking further, Munir expressed disappointment by the refusal of the oil and gas companies to abide by the country's rules on gas flaring adding that the 10th Assembly will make sure it recovers all unpaid fines levied on the companies, and also ensure they comply with the country's legislation and regulations.
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