In a significant development for Nigeria’s energy sector, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced on September 3, 2025, that the country’s gas-to-power supply reached a three-month high of 862.86 million standard cubic feet per day (MMSCF/D) in July 2025. This marks a 3.48% increase from June’s figure of 833.86 MMSCF/D, signaling a positive trend in Nigeria’s efforts to bolster energy supply for its power sector. The milestone, detailed in the NUPRC’s Gas Production Status Report, comes alongside a remarkable reduction in gas flaring, which dropped to 7.16% in July, even as daily gas production rose to 7.59 billion standard cubic feet per day (BSCFD). This dual achievement underscores Nigeria’s commitment to enhancing energy security while advancing its environmental sustainability goals, positioning the country as a key player in Africa’s energy transition.
A Breakthrough in Gas-to-Power Supply
The increase in gas-to-power supply to 862.86 MMSCF/D in July 2025 represents a recovery from a slight decline observed in May (837.64 MMSCF/D) and June (833.86 MMSCF/D). According to the NUPRC, this figure is the highest in three months, reflecting a month-on-month growth of 3.48%. The report provides a detailed breakdown of gas-to-power supply over the first seven months of 2025: January recorded 780.23 MMSCF/D, February saw an increase to 849.37 MMSCF/D, March and April peaked at 886.83 MMSCF/D and 886.7 MMSCF/D, respectively, before dipping in May and June, and rebounding in July. This upward trajectory is a critical development for Nigeria, where reliable electricity supply remains a persistent challenge, with over 40% of the population lacking access to the national grid, according to the World Bank.
The gas-to-power sector is a cornerstone of Nigeria’s energy ecosystem, as natural gas is the primary fuel for the country’s thermal power plants, which account for approximately 80% of Nigeria’s electricity generation capacity. The increase in gas supply to power plants is expected to enhance electricity generation, reduce outages, and support economic activities across households, businesses, and industries. The NUPRC’s report highlights the government’s efforts to prioritize domestic gas utilization, with 27.82% of total gas production in July allocated to the domestic market, 35.88% to export sales, and 29.13% to field and plant operations, including fuel, gas lifting, and reinjection to maintain reservoir pressure.
This milestone is particularly significant given Nigeria’s historical struggles with gas supply constraints, pipeline vandalism, and inadequate infrastructure. The 3.48% month-on-month increase, though modest, signals progress in addressing these challenges and reflects the impact of recent investments in gas infrastructure, regulatory reforms, and partnerships with private sector players. The NUPRC attributes the achievement to its ongoing initiatives, including the Nigerian Gas Flare Commercialisation Programme (NGFCP), a Decarbonisation and Sustainability Blueprint, and the promotion of Carbon Capture and Storage (CCS) technologies.
A Milestone in Gas Production and Flaring Reduction
In addition to the gas-to-power surge, Nigeria achieved a rare energy milestone in July 2025, with daily gas production reaching 7.59 BSCFD, an 8.58% increase from the 6.99 BSCFD recorded for the full year of 2024 and a 9.84% rise from the 6.91 BSCFD in 2023. This sustained growth over the past three years underscores Nigeria’s position as one of Africa’s leading gas producers, with proven reserves of over 200 trillion cubic feet, making it the continent’s largest holder of natural gas reserves.
Equally significant is the reduction in gas flaring, which fell to 7.16% in July 2025, down from 7.55% in 2024 and 7.38% in 2023. Gas flaring, the burning of associated gas produced during oil extraction, has long been a contentious issue in Nigeria, contributing to environmental degradation, greenhouse gas emissions, and lost economic opportunities. The NUPRC’s efforts to curb flaring align with the government’s commitment to achieving zero routine flaring by 2030 and reducing methane emissions by 60% by 2031. The simultaneous increase in gas production and reduction in flaring is a testament to the effectiveness of these initiatives, particularly the NGFCP, which seeks to commercialize flared gas for domestic and industrial use.
The reduction in flaring is a critical step toward environmental sustainability. Gas flaring releases carbon dioxide, methane, and other pollutants, contributing to climate change and air pollution in oil-producing regions like the Niger Delta. According to the World Bank’s Global Gas Flaring Reduction Partnership, Nigeria flared approximately 7.1 billion cubic meters of gas in 2022, making it one of the top flaring countries globally. The drop to 7.16% in July 2025, despite increased production, reflects improved gas capture and utilization technologies, stricter regulatory enforcement, and investments in gas processing facilities.
The Broader Context of Nigeria’s Energy Sector
Nigeria’s energy sector is at a crossroads, balancing the need for economic growth with the imperatives of environmental sustainability and energy security. As Africa’s largest oil producer and a major gas exporter, Nigeria plays a pivotal role in global energy markets. However, the country faces significant challenges in meeting domestic energy demand. With a population of over 200 million and a rapidly growing economy, Nigeria’s electricity demand is projected to reach 45,000 megawatts by 2030, according to the Nigerian Electricity Regulatory Commission (NERC). Yet, the country’s current generation capacity hovers around 5,000–7,000 megawatts, with transmission and distribution losses further reducing the supply to end users.
The gas-to-power sector is critical to addressing this gap, as natural gas offers a cleaner and more reliable alternative to other fossil fuels. The increase in gas-to-power supply to 862.86 MMSCF/D in July 2025 is a step in the right direction, but significant investments are needed to sustain this momentum. Key challenges include aging pipeline infrastructure, vandalism, and gas supply agreements that prioritize exports over domestic needs. The NUPRC’s report notes that 35.88% of gas production in July was allocated to export markets, highlighting the tension between domestic energy needs and Nigeria’s role as a global gas supplier.
Recent government policies, such as the Petroleum Industry Act (PIA) of 2021, have sought to address these challenges by creating a more transparent and investor-friendly regulatory framework. The PIA established the NUPRC as the upstream regulator, tasked with overseeing gas production, utilization, and flaring reduction. The commission’s efforts to improve domestic gas delivery obligations (DGDO), which reached 72.5% in July 2025 (up from 71.8% in June), demonstrate progress in prioritizing local supply. However, stakeholders argue that more needs to be done to ensure that gas-to-power projects receive consistent and affordable gas supplies.
Economic and Social Implications
The surge in gas-to-power supply has far-reaching implications for Nigeria’s economy and society. Reliable electricity is a prerequisite for economic development, powering industries, small and medium enterprises (SMEs), and households. The manufacturing sector, which contributes approximately 10% to Nigeria’s GDP, is particularly sensitive to power outages, with many businesses relying on costly diesel generators. The increase in gas supply could reduce dependence on these alternatives, lowering production costs and boosting competitiveness.
For SMEs, which account for 48% of Nigeria’s GDP and 84% of employment, according to the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), improved power supply could enhance productivity and job creation. Similarly, households stand to benefit from reduced outages, improving quality of life and enabling access to essential services like education and healthcare, which rely on electricity for digital learning and medical equipment.
The reduction in gas flaring also has significant social and environmental benefits, particularly for communities in the Niger Delta, where flaring has caused health issues, environmental degradation, and economic losses. The commercialization of flared gas through programs like the NGFCP could create new revenue streams, support local industries, and improve living conditions in these communities. For instance, flared gas can be used to power micro-grids, providing electricity to remote areas and advancing Nigeria’s goal of universal energy access by 2030.
Challenges and Criticisms
Despite the positive developments, Nigeria’s gas-to-power sector faces several challenges. Pipeline vandalism and sabotage remain persistent threats, particularly in the Niger Delta, where militant groups and criminal networks disrupt gas supply lines. The Nigerian National Petroleum Company Limited (NNPCL) reported losses of over N500 million monthly at its Port Harcourt Refinery due to vandalism, highlighting the scale of the problem. Addressing this issue will require enhanced security measures, community engagement, and alternative transportation methods, such as compressed natural gas (CNG) trucking.
Another challenge is the financial sustainability of gas-to-power projects. Many power plants struggle with unpaid debts from electricity distribution companies (DisCos), which limits their ability to procure gas. The Federal Government’s interventions, such as the Power Sector Recovery Programme, aim to address these liquidity issues, but long-term solutions are needed to ensure a viable gas-to-power value chain.
Critics also argue that the focus on gas-to-power, while important, should not overshadow investments in renewable energy. Nigeria’s abundant solar, wind, and hydropower potential remains underutilized, with renewables accounting for less than 2% of the country’s energy mix. Environmental groups, such as the Nigerian Conservation Foundation, have called for a balanced approach that integrates clean energy solutions to meet Nigeria’s climate commitments under the Paris Agreement.
Global and Regional Context
Nigeria’s achievements in gas production and flaring reduction position it as a leader in Africa’s energy transition. The continent is increasingly seen as a key player in global gas markets, with countries like Mozambique, Algeria, and Egypt expanding their gas sectors. Nigeria’s 7.59 BSCFD production in July 2025 reinforces its dominance, but competition from other producers requires continued investment in infrastructure and innovation.
Globally, the energy transition is reshaping priorities, with natural gas viewed as a “bridge fuel” to a low-carbon future. Nigeria’s efforts to reduce flaring align with international frameworks like the World Bank’s Zero Routine Flaring by 2030 initiative and the Global Methane Pledge, which Nigeria joined in 2021. However, the country faces pressure to accelerate its transition to renewables, as developed nations push for stricter climate targets. The ongoing United Nations negotiations for a global plastics treaty, which also address fossil fuel-derived products, further highlight the need for Nigeria to balance its gas-driven economy with environmental sustainability.
The Role of the NUPRC and Future Prospects
The NUPRC has been instrumental in driving Nigeria’s gas sector reforms. Under the leadership of Chief Executive Gbenga Komolafe, the commission has implemented policies to boost production, reduce flaring, and enhance domestic gas utilization. The NGFCP, launched in 2016, has awarded contracts to companies to capture and commercialize flared gas, creating new opportunities for power generation, industrial use, and export. The commission’s Decarbonisation and Sustainability Blueprint and promotion of CCS technologies further demonstrate its commitment to aligning Nigeria’s energy sector with global best practices.
Looking ahead, the NUPRC aims to sustain the growth in gas-to-power supply and further reduce flaring. Planned projects, such as the Ajaokuta-Kaduna-Kano (AKK) gas pipeline, are expected to enhance gas transportation and distribution, unlocking additional supply for power plants and industries. The commission is also working to attract foreign investment, with companies like Shell, TotalEnergies, and ExxonMobil expanding their operations in Nigeria’s gas sector.
For FUEZ, the focus will be on consolidating its academic programs, building partnerships, and addressing local education challenges. The university’s success will depend on sustained government support, effective leadership, and community engagement. Professor Bunkure’s appointment signals a commitment to these goals, but the broader context of Nigeria’s education sector underscores the need for systemic reforms to complement such leadership changes.
Public and Industry Reactions
The NUPRC’s announcement has been met with widespread approval from industry stakeholders and policymakers. The Nigerian Gas Association (NGA) praised the milestone, noting that it demonstrates Nigeria’s potential to become a global gas hub. “The increase in gas-to-power supply and reduction in flaring are critical steps toward energy security and sustainability,” said NGA President Ed Ubong. However, some analysts have called for greater transparency in how gas is allocated between domestic and export markets, citing concerns about prioritizing foreign revenue over local needs.
On platforms like X, reactions have been mixed, with some users celebrating the achievement and others questioning its impact on electricity tariffs and accessibility. “More gas is good, but will it translate to cheaper electricity for the common man?” asked a user, reflecting a common sentiment about the disconnect between energy sector gains and tangible benefits for citizens.
Conclusion
Nigeria’s gas-to-power supply reaching a three-month high of 862.86 MMSCF/D in July 2025, coupled with a reduction in gas flaring to 7.16%, marks a significant milestone for the country’s energy sector. These achievements reflect the NUPRC’s strategic efforts to enhance gas production, prioritize domestic supply, and advance environmental sustainability. As Nigeria navigates the challenges of pipeline vandalism, financial constraints, and the global energy transition, sustained investments in infrastructure, renewable energy, and regulatory reforms will be critical to maintaining this momentum.
The surge in gas-to-power supply offers hope for improved electricity access, economic growth, and better living standards for Nigerians. By reducing flaring, the country is also taking meaningful steps toward mitigating climate change and supporting communities in the Niger Delta. As the NUPRC continues to implement its ambitious agenda, Nigeria has the opportunity to solidify its position as a leader in Africa’s energy landscape, balancing economic development with environmental stewardship for a sustainable future.
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