This publication is the first of a three-part series on the Nigerian Gas sector. The series aims to highlight the industry issues and challenges as well as assess the opportunities across the value-chain in addition to providing an outlook for the sector. In this first part we assess the impact of gas flaring on the Nigerian economy by estimating in monetary terms the economic and health effects of gas flaring as well as the revenue potential lost from flaring.
According to the World Bank, gas flaring costs the global economy US$20billion in 2018. In Nigeria, PwC estimates that the Nigerian economy lost N233 billion (US$761.6 million) to gas flaring which translates to 3.8% of the global total cost in 2018.
The percentage of gas flared in Nigeria has been reducing since 2002 and stood at 10% in 2018. The country still ranks in the top 10 gas flaring countries in the world, with 7.4 billion cubic feet in 2018. Total gas flared in Nigeria accounted for 6.9% of the top 10 gas glaring countries in 2018.
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