The Nigerian economy is facing a major challenge: gas flaring by oil companies. The impact of this practice on the country’s energy production is alarming, with an estimated loss of about 20,100 gigawatts per hour in the first nine months of this year. This situation, resulting in a 5.5% increase over the previous year, highlights the challenges facing the energy sector in Nigeria.
The difficulty in generating over 4,000 megawatts of electricity to meet the needs of households and businesses is partly due to a limited supply of gas to power plants. Gas flaring increased by 8% in nine months, reaching 200.5 million standard cubic feet, compared to 190.2 million recorded the previous year.
Figures released by the National Oil Spill Detection and Response Agency also reveal a monetary value of $701.8 million for gas flared during this period, with potential fines of $401 million for companies responsible, including international companies.
Environmental degradation is also a concern, with an equivalent of 10.7 million tonnes of carbon dioxide emitted from gas flaring. Despite efforts to curb the practice, Nigeria continues to suffer the negative impacts of gas flaring since the 1950s.
Power grid outages are likely to increase, partly due to issues such as lack of gas supply to power plants. The frequency of fluctuations when consumer demand exceeds generation supply can lead to system failures, leading to damage to power generation facilities and significant economic disruption.
Adetayo Adegbemle, Executive Director of PowerUp Nigeria, highlights the negative impact of these outages on power generation companies and the economy as a whole. He explains that the situation can be compared to a domestic generator being overwhelmed by the energy demand in a house, causing the system to malfunction.
In conclusion, it is crucial that steps are taken to address these structural issues and ensure reliable supply of electrical energy to support Nigeria’s economic development. Transitioning to more sustainable energy sources and adopting environmentally friendly practices are essential to ensuring a more stable and sustainable energy future for the country.