Executive Summary
Background and objective
Methane emissions from the oil and gas sector present a critical but under-addressed environmental and economic challenge for Nigeria. As the second-largest source of methane in sub-Saharan Africa, Nigeria faces increasing pressure to reduce emissions both to meet its climate commitments under the Paris Agreement and to remain competitive in an evolving global energy market. Despite these challenges, methane mitigation and reduction offer Nigeria a low- or no-cost pathway to significantly reduce short-lived climate pollutants (SLCP) while improving operational efficiency in its oil and gas sector.
To better understand and address this issue, APRI - Africa Policy Research Institute launched the Methane Mitigation and Reduction Project (MMRP) in collaboration with the Department of Climate Change in the Nigerian Federal Ministry of Environment. The initiative offers a comprehensive review and assessment of Nigeria’s current methane emissions landscape in the oil and gas sector; identifies gaps and opportunities across regulatory, technological, and financial dimensions; and proposes actionable strategies to reduce emissions across the oil and gas value chain while supporting national energy and economic goals.
The primary objective of the MMRP is to assess and enhance methane mitigation and reduction strategies within Nigeria’s oil and gas industry. This involves evaluating the current state of emissions, analysing existing policy frameworks, identifying financing gaps and opportunities, and engaging stakeholders at all levels – from government agencies and private operators to civil society and local communities. By situating Nigeria’s methane mitigation agenda within broader sustainable development and climate goals, the project aims to generate practical, evidence-based recommendations to support the country’s transition toward a lower-emissions and more economically resilient energy future.
The MMRP initiative has produced a suite of strategic outputs, including a Framing Paper, Mapping Report, Commentary, Fact Sheet and Short Analysis. Together these provide a comprehensive insight into Nigeria’s methane emissions landscape. They also compile Nigeria’s key strengths and achievements, identify key regulatory and technological gaps, and offer actionable pathways for aligning the oil and gas sector with global methane reduction goals.
Nigeria’s key strengths and achievements
- Regulatory commitment: Nigeria was one of the first African countries to sign the Global Methane Pledge and has expressed intent to align with international frameworks such as the OGMP 2.0 and the Oil and Gas Decarbonization Charter (OGDC).
- Industry legislative framework: The 2021 Petroleum Industry Act (PIA) introduces reforms that create a basis for technological and commercial accountability, including the establishment of distinct regulatory agencies (NUPRC and NMDPRA).
- Sectoral environmental legislation: The 2006 NOSDRA Act is a critical environmental legislation enacted to oversee oil and gas pollution in Nigeria’s petroleum industry and has demonstrated technical expertise through the Nigerian Gas Flare Tracker and Oil Spill Monitor for pollution response experience.
- Gas flaring initiatives: Programmes like the Nigeria Gas Flare Commercialization Programme (NGFCP) and associated penalties under the PIA demonstrate an effort to discourage routine flaring and venting.
- Technical partnerships: Engagement with multilateral stakeholders (e.g., DFID/FCDO, World Bank’s GGFR, UNEP, CCAC) for capacity-building, financing and data infrastructure shows Nigeria’s openness to international collaboration.
Project scope and methodology
The project adopted a multi-pronged methodology, including:
- A review of national and international policy and regulatory frameworks
- Stakeholder mapping and consultations across government, private sector, civil society, international partners and host communities
- Field visits to key oil-producing states (Bayelsa, Rivers, Cross River, Anambra, Lagos, Abuja)
- Case studies on regulatory performance, technology deployment and socio-economic impacts
- Qualitative and quantitative data collection and comparative analysis with global benchmarks
Key findings
- Policy and institutional frameworks
Nigeria has several methane-related policies (e.g. the National Gas Policy, NDCs, NGFCP, SLCP Action Plan), but these are often fragmented, conflicting and weakly enforced. Notable issues include:
- Conflicting targets: 2025 deadline set by the petroleum ministry vs. 2030 set by the LTV-2050.
- Overlapping mandates between NOSDRA, NUPRC, NMDPRA and the Ministry of Environment.
- Data credibility crisis: Industry self-reporting often underestimates emissions compared to satellite-based evidence.
- Limited use of MRV systems and lack of an integrated legal framework
- Stakeholder perspectives
- Government agencies such as NOSDRA and NMDPRA demonstrate high awareness but face coordination and enforcement challenges.
- Private organisations cite high costs, weak incentives and lack of sectoral coordination as key barriers.
- International partners underscore the need for stronger data systems, institutional coherence and investment incentives.
- Academic institutions like Niger Delta University offer untapped potential but require funding and engagement.
- Host communities report severe environmental and health impacts from flaring and emissions but are largely excluded from policy and mitigation processes.
- Financing landscape
- Nigeria needs USD 1.5 billion in methane mitigation investment by 2030 yet faces major funding gaps.
- Global methane finance is disproportionately low in the fossil fuel sector, where Nigeria’s mitigation potential is greatest.
- Private capital and climate funds are underutilised, while public financing is volatile.
- Promising initiatives like flare-gas-to-energy and carbon markets remain underdeveloped.
Opportunities for action
The project identified clear opportunities to transform Nigeria’s methane agenda into a strategic economic and climate advantage:
|
Opportunity |
Potential impact |
|
Integrated methane governance framework |
Aligns policies, timelines and enforcement |
|
Enhanced MRV using satellite tech (e.g. NGFT, SMET) |
Improves data credibility and transparency |
|
Carbon markets and green bonds |
Attracts climate finance and incentivises mitigation |
|
Host community engagement |
Builds trust and ensures just energy transition |
|
Technology deployment (e.g. LDAR, vapour recovery) |
Reduces emissions, creates jobs and enhances efficiency |
Recommendations
|
Theme |
Potential impact |
|
Policy & regulation |
|
|
Operation & industry |
|
|
Finance & investment |
|
Conclusion
Methane mitigation and reduction is a powerful, underutilised lever for Nigeria’s climate ambition and economic resilience. If fully implemented, the recommendations of this report can unlock new investment, reduce environmental and health risks, support the just energy transition and positionNigeria as a regional leader in climate-smart oil and gas governance.
The MMRP concludes that a coordinated national methane plan – backed by political will, technology, financing and community inclusion – is essential for transforming Nigeria’s methane challenge into a development opportunity. Now is the time for bold, practical action.
About the author
Dr. Mahmoud Ibrahim Mahmoud
Dr. Mahmoud Ibrahim Mahmoud is an accomplished Geospatial Information and Environmental Scientist specializing in satellite remote sensing and Geographic Information System (GIS) applications. He is currently a Senior Climate Change Fellow working on Methane Mitigation and Reduction in Nigeria with the APRI - Africa Policy Research Institute. His research interests include emission detection, gas flare, spatial land-use planning, urban ecology, methane emission reduction for climate change mitigation, and environmental sustainability.
