FG Fails to Recover N13.33bn Gas Flaring Fines

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Amazin Zion

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Mar 1, 2023
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Reports show that the Federal Government lost N13.33 billion in income from gas flaring fines imposed on oil and gas companies in January and February 2023.

According to the National Oil Spill Detection and Response Agency's most recent gas flare statistics, firms operating onshore would face penalties for breaking the gas flaring law.

“Companies operating onshore flared 24.5 billion SCF of gas valued at $85.8m, with $49m penalties payable,” the government noted.

According to the research, businesses flared 19.14 billion SCF of gas in January and 14.04 billion SCF of gas in February 2023, generating 1.3 million tonnes of carbon dioxide emissions and 2,500 gigatonnes of electricity generation potential.

Companies working offshore, on the other hand, burned 25.8 billion SCF of gas worth $90 million, enough to generate 2,600 gigatonnes of power and emit 1.4 million tonnes of CO2.

In January and February 2023, offshore businesses burned 10.84 billion SCF and 13.09 billion SCF of gas, respectively. NOSDRA did not specify how much the fines for the flare would be.

However, according to reports, the Federal Government did not receive up to N22 billion from petrol flaring fines in January and February.

According to the Central Bank of Nigeria's quarterly data bulletin for the first quarter of 2023, the Federal Government earned N4.6 billion in January and N4.07 billion in February.

Read more: https://www.investingport.com/fg-fails-to-recover-n1333bn-gas-flaring-fines/