By Ono Yima
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned investors awarded flare gas sites under the Nigerian Gas Flare Commercialisation Programme (NGFCP) that they risk losing their permits if they fail to demonstrate meaningful progress in developing and utilising the sites.
The Commission Chief Executive, Mrs Oritsemeyiwa Eyesan, issued the warning during a working visit to the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, in Abuja on Tuesday, September 8, 2026.
Eyesan, who presented an update on the implementation of the NGFCP, said the Commission had instituted a monitoring process to ensure that awards translate into actual projects capable of capturing and commercialising gas that would otherwise be flared.
“One year after an award has been granted, the Commission conducts an evaluation to determine whether there has been considerable progress,” Eyesan said.
“Where there is insufficient progress, the Commission will take appropriate regulatory action, including revocation of the award where necessary,” she added.
The warning signals a tougher regulatory approach to the implementation of the flare gas commercialisation programme, as the NUPRC seeks to move awardees from the stage of securing permits to actual project development.
According to Eyesan, the NGFCP has continued to record progress despite initial resistance from some operators. She disclosed that 43 flare gas sites were originally identified for award, with 27 sites so far successfully awarded to investors, while implementation activities are ongoing.
The NGFCP is designed to enable third-party investors to commercialise gas that is currently being flared at oil production facilities. By capturing and processing the gas, the programme is expected to reduce environmental pollution while creating additional sources of energy for power generation, industrial production and other economic activities.
The Commission’s position also reflects the broader push by the Federal Government to end routine gas flaring and derive greater economic value from Nigeria’s vast natural gas resources. NUPRC said Nigeria currently has more than 215 trillion cubic feet (TCF) of proven gas reserves, with an estimated total reserve base of about 600 TCF.
For the industry, the latest warning puts greater emphasis on execution and accountability. The regulator is effectively making it clear that flare gas awards are not intended to become dormant assets, but must translate into investment, infrastructure and measurable gas utilisation.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, has also called for an aggressive implementation of Nigeria’s gas commercialisation programme to support the country’s 2030 target of eliminating routine gas flaring. He said the objective should be to convert gas resources into useful products and services rather than allowing them to remain a source of environmental pollution.
With 27 sites already awarded, the coming months could therefore provide an important test of whether the NGFCP can move decisively from awards and regulatory approvals to functioning commercial projects. For investors holding flare gas permits, the message from the upstream regulator is increasingly clear: progress must be demonstrated, or the award could be on the line.