NIGERIA · ENERGY

Seven and a half percent burned off, a rate not seen since last October, and the regulator threatening licences.

Nigeria’s LNG terminal, where gas is captured rather than burned off

Nigeria flared 7.48 percent of its gas output in August 2026. That is the highest monthly rate since October 2025.

What the Figures Show

Nigerian producers flared 18,350.55 million standard cubic feet of gas in August 2026. Total output was 245,439.13 million standard cubic feet, giving a flaring rate of 7.48 percent.

The remaining 227,088.58 million cubic feet was utilised, a rate of 92.5 percent. The flaring rate is the highest since October 2025, when it reached 7.55 percent.

What Flaring Actually Is

Gas often comes out of the ground alongside oil. Where there is no pipeline or processing plant to take it, producers burn it off at the wellhead.

The gas is wasted and the burning releases carbon dioxide. It is the single most visible form of loss in an oil field.

The Month-on-Month Move

Flared volume rose 17.7 percent from July, when 15,587.54 million standard cubic feet were burned. That is a substantial jump in a single month.

Against August 2025 the increase is 9.7 percent by volume. The rate itself rose only slightly year on year, because output also grew.

The Pattern Across 2026

Nigeria has flared about 131,564 million standard cubic feet in the first eight months of 2026. The monthly rate has stayed above six percent throughout.

The lowest month was March at 6.40 percent. There has been no month this year in which the rate approached elimination targets.

Why It Keeps Happening

The regulator attributes the persistence to inadequate infrastructure. There is not enough gas transport capacity, and processing facilities are ageing with high downtime.

That framing matters because it points at capital spending rather than at willingness. A producer with nowhere to send gas has limited options at the wellhead.

What the Regulator Has Said

The Nigerian Upstream Petroleum Regulatory Commission has warned that it will act where operators show insufficient progress. Its stated remedy includes revoking the award where necessary.

Revoking a licence is the strongest tool a petroleum regulator has. Whether it is used is a different question from whether it is threatened.

The Money Already Collected

Nigeria collected about 521.87 billion naira in flare penalties during 2025, roughly US$393 million. That was 74.57 percent of a target of 699.84 billion naira.

Missing a penalty target by a quarter can mean two things. Either less gas was flared than expected, or less was collected than was owed.

Where Nigeria Sits Globally

Nigeria remained among the world’s nine largest flaring countries in 2025. The others were Russia, Iran, Iraq, Venezuela, Mexico, Libya, Algeria and the United States.

Those nine accounted for 83 percent of global flaring. Nigeria’s total for 2025 was about 203.9 billion cubic feet.

What It Means Beyond the Oil Fields

Gas that is burned is gas that is not powering Nigerian homes or factories. The country has chronic electricity shortages and abundant gas.

Every month at this rate is a measurable quantity of fuel destroyed within reach of a grid that needs it. That is the practical cost rather than the environmental one.

What Is Not Yet Known

The commission has not named the operators responsible for the largest volumes. Nor has it said how many awards are under review.

It is also unclear whether penalty collection for 2026 is on target. No mid-year figure has been published.

What to Watch

Whether any award is actually revoked. The threat has been made before without being used.

Watch also for gas infrastructure announcements. The regulator’s own explanation points there rather than at enforcement.

More: Africa news and analysis, every day from The Rio Times.

Background: ECLAC: Panama Canal Economy Still the Engine as Growth Seen at 4.4%.

Frequently Asked Questions

How much gas did Nigeria flare in August?

18,350.55 million standard cubic feet, or 7.48 percent of output.

Is that high?

It is the highest monthly rate since October 2025, when it reached 7.55 percent.

What is gas flaring?

Burning off gas produced alongside oil, where there is no pipeline or plant to capture it.

Why does it happen?

The regulator cites inadequate gas transport capacity and ageing processing facilities with high downtime.

What can the regulator do?

It has said it may revoke awards where operators show insufficient progress.

Where does Nigeria rank?

Among the world’s nine largest flaring countries in 2025, which together accounted for 83 percent of global flaring.

Sources: Nigerian Upstream Petroleum Regulatory Commission monthly data for August 2026; World Bank global gas flaring rankings for 2025; exchange rate from open.er-api.com, 17 September 2026.