Africa's Climate Agenda Short Analysis

The benefits of methane mitigation and reduction in Nigeria’s oil and gas sector

Nigeria’s oil and gas sector presents an opportunity to turn climate challenges into economic, social and environmental wins. Reducing methane emissions can drive climate resilience, enhance public health, create green jobs and position Nigeria as a global leader in the energy transition.

The benefits of methane mitigation and reduction in Nigeria’s oil and gas sector
Quality Stock Arts/Shutterstock.com
By Mahmoud Ibrahim Mahmoud
Published on Feb 12, 2025
Summary
  • Methane mitigation in Nigeria’s oil and gas sector can significantly reduce greenhouse gas emissions, combat climate change and support Nigeria’s Nationally Determined Contribution (NDC) targets.
  • An array of social and economic benefits can be derived for Nigeria through capturing and converting methane to fuel industries, high-performance computing (HPC) centres, artificial intelligence hubs and waste-to-energy projects.
  • As a result of improved air quality from methane reduction and mitigation actions, Nigeria also stands to gain from health and well-being improvements.
  • Action on methane mitigation could also trigger the development of renewable energies and accelerate the just energy transition (JET).
  • Nigeria’s desire to reduce its methane footprint is a demonstration of its potential for climate leadership, both regionally and globally.
Introduction and background

As Africa's leading oil and gas producer, Nigeria occupies a strategic position in global energy dynamics. The country’s vast hydrocarbon resources, which include the largest proven natural gas reserves in Africa, have long been the backbone of its economy.1 However, Nigeria’s reliance on oil and gas, accounting for over 90% of export earnings and up to 80% of government revenue, presents a dual challenge: economic dependency and environmental vulnerability.2 3 The sector is also responsible for a substantial portion of the country’s greenhouse gas (GHG) emissions, particularly methane – a potent climate pollutant. Methane emissions from Nigeria’s oil and gas operations are significant, with gas flaring, venting and leaks contributing to over 439.8 kilotons annually.4 This not only exacerbates climate change but also leads to severe environmental degradation, economic losses and public health crises, especially in host communities of oil and gas infrastructure across the upstream, midstream and downstream of the sector.

The International Energy Agency (IEA) identifies methane mitigation in the oil and gas sector as one of the fastest, most cost-effective means of reducing global emissions. Furthermore, the IEA estimates that Nigeria could unlock USD 1.5 billion annually through methane reduction strategies.5 Therefore, as the continent's largest oil producer and a strategic player in the global energy transition, Nigeria is uniquely positioned to demonstrate how methane mitigation and reduction pathways can serve as a cornerstone for sustainable development and climate action.6 7 In this respect, Nigeria’s oil and gas sector holds immense potential to lead the global fight against methane emissions while unlocking transformative socio-economic opportunities. This analysis highlights the key benefits of methane mitigation and reduction in the oil and gas sector for Nigeria and, by extension, the African continent and the world.

The core benefits of methane mitigation and reduction in Nigeria's oil and gas sector

The mitigation and reduction of methane emissions from the oil and gas sector offers multidimensional benefits for Nigeria. These benefits, outlined below, include the environment and climate, socio-economics, health and well-being, the just energy transition (JET), and regional and global leadership.

  • Environmental and climate benefits: Nigeria’s heavy reliance on oil and gas extraction makes methane reduction a critical environmental and climate challenge. Compared to other African countries, Nigeria’s methane emissions are among the highest.8 In fact, according to the World Bank’s Global Gas Flaring Reduction Partnership (GGFR), methane emissions from flaring, venting and leaks in Nigeria’s oil and gas sector accounts for a significant portion of the global methane emission budget.9 Similarly, the Nigerian Gas Flare Tracker (NGFT) tool reveals high emissions from gas flaring in the country.10 While countries like Algeria, Angola and Egypt face similar challenges, Nigeria’s legacy of under-regulated flaring, weak enforcement and outdated infrastructure exacerbates the issue.11 Methane, a powerful GHG gas over 80 times more potent than carbon dioxide over a 20-year period, accelerates climate change by trapping heat.12 Its presence drives extreme weather patterns, rising sea levels and biodiversity loss. Therefore, action on methane mitigation and reduction positions Nigeria as a pivotal actor in Africa’s methane mitigation landscape and offers substantial environmental and climate benefits.
  • Social and economic benefits: With a population exceeding 220 million, over 60% of whom are under 25, Nigeria faces unique socio-economic and developmental challenges. Yet, this youth demographic also presents an opportunity.13 The country’s young, tech-savvy workforce is ripe for training and engagement in emerging sectors like high-performance computing (HPC), data analytics, machine learning and cryptocurrency. However, as growth in these sectors surges, the demand for high-power data centres, which consume large amounts of electricity for processing and cooling, is also rising.14 15 Methane that would otherwise be flared, i.e. wasted, can provide a reliable and cost-effective solution for these energy-intensive operations and reduce dependency on traditional grid power sources. The turning of methane into a productive asset can also address key issues in the climate financing space. For example, the potential exists to leverage cryptocurrency and blockchain-based financial instruments to generate funding for methane-capture projects, scaling investments needed to advance flare-down incentives. The NGFT reports that approximately 188,000 GWh of electricity was lost through gas flaring in Nigeria from January 2019 to December 2024.16 To put this into context, Nigeria’s total average electricity generation capacity currently hovers around 4,000 to 5,000 MWh, supplying only about 50% of national electricity demand.17 Capturing this otherwise wasted resource has the potential to catalyse an entirely new sector focused on sustainable energy, job creation, technological innovation and enhanced economic growth.18
  • Health and well-being benefits: Reducing methane emissions offers multiple health benefits in the form of direct improvements in public health situations and secondary gains that serve as feedstock for the energy generation value chain by utilising captured methane to power healthcare services. According to the World Resources Institute, methane reduction is a precursor to improved air quality which could significantly cut healthcare expenditures, thus minimising hospital visits linked to pollution exposure.19 20 Lower methane emissions mean reduced release of hazardous pollutants like volatile organic compounds (VOCs) and toxic air pollutants that contribute to respiratory and cardiovascular illnesses.21 This results in healthier communities, lower healthcare costs and enhanced quality of life, particularly for vulnerable populations near oil and gas facilities.22 Field studies in Aleto, Eleme (Rivers State), and Koroama, Yenagoa (Bayelsa State), highlight the potential of repurposing captured methane to power hospitals, health centres and up to 50,000 homes in oil and gas operations’ host communities. Reliable electricity could also power life-saving equipment, reduce maternal and child mortality, and strengthen healthcare delivery. While exact savings figures for Nigeria remain uncertain, estimates suggest that comprehensive methane reduction efforts could yield substantial healthcare cost reductions and public health improvements. For instance, globally, methane mitigation could prevent around 255,000 premature deaths and 775,000 asthma-linked hospital visitations each year.23 Similarly, the transition from fossil fuels to renewables in South Africa’s energy sector is projected to prevent over 255,000 premature deaths by 2050.24
  • Just energy transition (JET): In a world transitioning to cleaner energy, Nigeria stands at a crossroads where it can either lead by example or face increasing risks of stranded assets and diminished global relevance in the energy sector. Considering that Nigeria depends on oil and gas for most of its energy demand, methane mitigation and reduction could trigger the development of renewable energy sources such as solar and wind. Renewable energy offers a multitude of additional benefits over fossil fuels, positioning it as a cornerstone for sustainable development, climate action and pathways to social equity.25 26 Renewable energy industries also create more jobs per dollar invested compared to fossil fuels.27 28 According to a report by the IEA, the fossil fuel industry, comprising the oil and gas extraction subdivision, employed 11.8 million people globally in 2023.29 On the contrary, as the world experiences a boom in renewable energy and the transition towards cleaner energy, renewable energy industries created approximately 12.7 million jobs globally in 2021. 30According to the International Renewable Energy Agency (IRENA), this figure rose to 13.7 million in 2022. This upward trajectory has a significant potential for job creation in Nigeria’s solar PV, wind and biomass sectors. Notably, decentralised renewable projects, such as solar microgrids, support sub-national goals by fostering local entrepreneurship and energy access in underserved regions. In addition, the sector provides better opportunities for women compared to the traditionally male-dominated fossil fuel industry: Women represent 32% of the renewable energy workforce, surpassing their 22% share in the fossil fuel sector. The renewable energy sector is therefore providing a window of opportunity for gender inclusivity.31 Nigerian initiatives such as Solar Sister, which empowers women entrepreneurs to distribute solar energy products, thus promoting gender equity alongside climate goals, exemplify this trend. Renewable projects are also instrumental in achieving sub-national climate targets, as can be witnessed, for instance, in Lagos State's deployment of solar power in schools.32 Furthermore, the social justice and equity benefits of renewables contribute to energy justice by providing affordable and clean energy to marginalised communities. This reduces energy poverty and fosters social development.
  • Regional and global leadership: As Africa’s largest oil and gas producer, Nigeria's commitment to reducing methane emissions gives the country a pivotal role in shaping the continent’s climate action and energy transition.33 34 Its active participation in global initiatives like the Global Methane Pledge and its implementation of national policies to reduce, for example, short-lived climate pollutants (SLCPs), demonstrate a deliberate effort to align climate goals with sustainable development.35 Coherent implementation to optimise the multiple direct and indirect benefits of methane reduction can strengthen Nigeria’s leadership role while fostering regional and global collaboration for a cleaner, more resilient future.
Accelerating the benefits of methane mitigation and reduction in Nigeria

The ambition to implement a robust methane mitigation and reduction strategy presents Nigeria with multiple tangible benefits across environmental, social, health, economic and regional and global leadership domains. This necessitates urgent and strategic actions to implement methane reduction policies, enforce regulations and invest in clean technologies, ensuring both climate stability and economic prosperity. Nigeria’s commitment to international climate agreements, including its revised Nationally Determined Contributions (NDCs) under the Paris Agreement and its adherence to the Global Methane Pledge to reduce emissions by 30% by 2030, underscores its commitment to addressing methane emissions.36 Accordingly, Nigeria has developed digital regulatory tools such as the Nigerian Gas Flare Tracker under the Accountability, Transparency, Data, and Policy Enforcement (ATDPE) initiative of the National Oil Spill Detection and Response Agency (NOSDRA).37 In addition, by leveraging its Climate Change Act of 2021, as well as the Petroleum Industry Act of 2021, and declaring the current era as the Decade of Gas initiative, Nigeria is uniquely positioned to balance its development needs with climate action, making methane mitigation a strategic priority.

Over the past several years, Nigeria has emerged as a key player in methane mitigation and reduction efforts, leveraging its role as Africa’s largest oil and gas producer and a major methane emitter. The country has taken several steps toward advancing methane reduction, both regionally and globally. For instance, as a Global Methane Pledge (2021) signatory and champion at COP26, Nigeria committed to reducing methane emissions by 30% by 2030 from 2020 levels. This strategic move positioned Nigeria as the first African country to formally commit to the methane reduction target, setting a benchmark for other oil-producing nations in Africa. Other strategic efforts include:

  • development of a short-lived climate pollutants (SLCPs) national action plan (NAP)-SNAP;
  • enactment of the Petroleum Industry Act (PIA) 2021 through legislative reforms;
  • development and implementation of the framework of the Nigerian Gas Flare Commercialisation Programme (NGFCP);
  • demonstration of leadership and climate diplomacy in international climate negotiations under the United Nations Framework Convention on Climate Change (UNFCCC);
  • advocating for methane finance mechanisms at COP27, COP28 and COP29 to support developing countries in methane reduction projects, and – through platforms such as the African Ministerial Conference on the Environment (AMCEN) and ECOWAS Climate Strategy forums – advocating for regional climate action agendas with cross-border collaboration initiatives for methane management in Africa’s Gas Exporting Countries Forum (GECF);
  • involvement in international partnerships, such as the Global Methane Hub, to develop methane reduction projects through grants, technology transfer and capacity building;
  • working closely with the World Bank’s Global Gas Flaring Reduction Partnership (GGFR), receiving technical and financial support for methane emission reduction programmes;
  • building research, innovation and capacity by hosting global universities and organisations, such as the Africa Policy Research Institute (APRI), the Climate and Clean Air Coalition (CCAC) and the Clean Air Task Force (CATF), all of whom are focused on methane emissions research and data transparency.

In the short term, some of the benefits of methane mitigation and reduction can be accelerated by:

  • adopting a data-driven accountability, transparency and policy enforcement initiative and utilising the Nigerian Gas Flare Tracker tool as a regulatory gas flare molecule accounting programme;
  • adopting efficient zero flaring and venting technologies such as vapor recovery units (VRUs) that capture methane from storage tanks and low-pressure gas streams; 38
  • replacing the obsolete technology prevalent in Nigeria’s oil and gas assets with flare gas recovery systems that compress and reinject methane into the oil and gas processing stages; 39
  • integrating advanced well-completion technologies that focus on green completion, where gas is captured during well-drilling and -completion phases instead of venting or flaring, as well as closed-loop drilling, which is known to prevent gas release during drilling operations;40 41
  • Leak Detection and Repair (LDAR) systems such as optical gas imaging (OGI), drones and satellites configured with infrared cameras for real-time aerial surveys of methane plumes and leaks, and sensors installed on-site for 24/7 monitoring.42

The optimisation and improvement considerations suggested here will lead to flare efficiencies and prevent methane leaks, thus significantly lowering Nigeria’s carbon footprint and contributing to a cleaner, more sustainable environment. They will also help mitigate the impacts of climate change, such as deteriorating air quality and extreme weather and flooding events. To capitalise on the benefits of methane mitigation and reduction, Nigeria must also leverage existing efforts to accelerate methane mitigation and reduction. This requires a multi-faceted approach that integrates policy strengthening, technological innovation, financial mobilisation and public engagement. Specifically, the country must:

  • strengthen the policy and regulatory framework to enforce existing laws like the Petroleum Industry Act (PIA) and the NOSDRA Act, while integrating methane-specific targets into the country’s NDCs;
  • encourage all oil companies to join and adopt the Oil and Gas Methane Partnership 2.0 programme to solidify their commitment to environmental sustainability;
  • develop a robust measurement, monitoring, reporting and verification (MMRV) system supported by satellite and ground-based technologies to ensure transparency and accountability;
  • promote cleaner technologies such as gas capture and leak detection systems, coupled with industry compliance incentives like tax credits to drive operational efficiency;
  • finance efforts through global climate funds, public-private partnerships (PPPs) and international investment platforms to further support methane reduction initiatives;
  • strengthen public awareness and community engagement through grassroots monitoring programmes and media campaigns to highlight environmental, health and economic benefits.

Finally, Nigeria can assert its regional and global leadership by sharing best practices, showcasing project successes and fostering regional cooperation on methane reduction goals. This integrated strategy can enhance environmental sustainability, boost economic growth and promote public health while positioning the country as a leading force in global methane mitigation efforts.

Conclusion

Methane mitigation and reduction in Nigeria's oil and gas sector offer unparalleled opportunities for environmental protection, economic growth, improved public health and regional leadership in climate action. Strategically, capturing and utilising methane can strengthen energy security by providing a clean and reliable energy source for industries such as high-performance computing and renewable technologies, while creating green jobs and reducing energy poverty. From an environment and sustainability perspective, reduced methane emissions contribute to climate stability and improved air quality, aligning Nigeria with its global climate commitments under the Global Methane Pledge and NDCs. From a socio-economic perspective, these measures bolster livelihoods, reduce energy insecurity and enhance public health by minimising pollution-related diseases. However, these transformative benefits are not automatic. They require deliberate and sustained action through smart regulatory frameworks, technology adoption and stakeholder engagement. While Nigeria has made commendable strides in addressing methane emissions, including commitments in the SNAP and NDCs, current efforts are insufficient to meet the ambitious targets set for 2030. To sustain progress, Nigeria must intensify its mitigation strategies, optimise the benefits of captured methane and ensure an unwavering focus on implementation and enforcement. The path to achieving these goals demands greater urgency, innovation and collaboration to ensure that methane mitigation becomes a cornerstone of Nigeria’s sustainable development agenda. The country’s commitment in this direction can affirm its regional and global leadership status, reaping significant dividends across multiple dimensions while advancing its long-term development and climate priorities.

Endnotes

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[4] Federal Ministry of Environment. (2018). Nigeria’s national action plan (NAP) to reduce short-lived climate pollutants. Retrieved January 23, 2025, from https://www.ccacoalition.org/en/resources/nigeria%E2%80%99s-national-action-plan-reduce-short-lived-climate-pollutants

[5] International Energy Agency (IEA). (2023, June). Financing reductions in oil and gas methane emissions: a world energy outlook special report on the oil and gas industry and COP28. Retrieved January 23, 2025, from https://iea.blob.core.windows.net/assets/ff747fc8-a8d9-4eda-9bc9-0e2b628cb019/Financingreductionsinoilandgasmethaneemissions.pdf

[6] Aduloju, B. (2023, November 13). OPEC: Nigeria retained position as Africa’s largest oil producer in October. The Cable. Retrieved November 21, 2024, from https://www.thecable.ng/opec-nigeria-retained-position-as-africas-largest-oil-producer-in-october/

[7] Nigerian Upstream Petroleum Regulatory Commission. (2024). Nigeria: leading crude oil producer in Africa. Retrieved November 21, 2024, from https://www.nuprc.gov.ng/nigeria-leading-crude-oil-producer-in-africa/#:~:text=Nigeria%20continues%20to%20dominate%20as,barrels%20per%20day%20(mbpd).

[8] IEA. (n.d.). How much CO2 does Nigeria emit? Retrieved January 10, 2025, from https://www.iea.org/countries/nigeria/emissions

[9] Global Gas Flaring Data. (2024, June 10). Global Flaring and Methane Reduction Partnership (GFMR). Retrieved December 20, 2024, from https://www.worldbank.org/en/programs/gasflaringreduction/global-flaring-data

[10] Nigerian Gas Flare Tracker. (2014, July 6). Satellite gas flare tracking from NOSDRA. Retrieved December 27, 2024, from https://nosdra.gasflaretracker.ng/data.html

[11] BusinessDay Nigeria. (2025, January 12). Unresolved Infrastructure challenges stifling gas sector growth. Retrieved January 12, 2025, from https://archive.businessday.ng/oilandgas/article/unresolved-infrastructure-challenges-stifling-gas-sector-growth/

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[15] Jones, J. (2024, October 25). The Striking AI Data Behind Bitcoin Mining. Brave New Coin. Retrieved November 21, 2024, from https://bravenewcoin.com/insights/bitcoin-miners-face-an-ai-dilemma

[16] National Oil Spill Detection and Response Agency (NOSDRA) – Nigerian Gas Flare Tracker. (2025, January 12). Retrieved January 12, 2025, from https://gasflaretracker.ng/

[17] PUNCH Newspaper. (2024, May 25). Nigeria will generate 6,000MW of electricity by Dec, says Minister. Retrieved January 12, 2025, from https://punchng.com/nigeria-will-generate-6000mw-of-electricity-by-dec-says-minister/

[18] Ejiogu, A. R. (2013). Gas flaring in Nigeria: costs and policy. Energy&Environment, 24(6), 983–998. http://www.jstor.org/stable/43735213

[19] Monaco, A., Ross, K., Waskow, D.,&Ge, M. (2021, September 17). How methane emissions contribute to climate change. Climate. Retrieved December 9, 2024, from https://www.wri.org/insights/methane-gas-emissions-climate-change

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[21] Odubo, T. C.,&Kosoe, E. A. (2024). Sources of air pollutants: impacts and solutions. In Air Pollutants in the Context of One Health: Fundamentals, Sources, and Impacts (pp. 75-121). Cham: Springer Nature Switzerland.

[22] Galimova, T., Ram, M.,&Breyer, C. (2022). Mitigation of air pollution and corresponding impacts during a global energy transition towards 100% renewable energy system by 2050. Energy Reports, 8, 14124-14143.

[23] Renewable Natural Resources Foundation. (2021, June 3). UN Report highlights opportunities and importance of reducing methane emissions. Retrieved December 20, 2024, from https://rnrf.org/2021/06/un-report-highlights-opportunities-and-importance-of-reducing-methane-emissions/

[24] Reporting the Changing World. (2021, July 5). Energy terminal: methane reduction steps could prevent 255,000 premature deaths per year. Retrieved January 12, 2025, from https://www.aa.com.tr/en/energy/natural-gas/methane-reduction-steps-could-prevent-255-000-premature-deaths-per-year/32652

[25] Union of Concerned Scientists-Report and Media. (2008, July 14). Benefits of Renewable Energy Use. Retrieved December 24, 2024, from https://www.ucsusa.org/resources/benefits-renewable-energy-use

[26] Gates Notes. (2023). Accelerate climate innovation. Retrieved December 24, 2024, from https://www.gatesnotes.com/work/accelerate-climate-innovation/stack/

[27] Jaeger, J. (2021, October 18). Climate-friendly investments can create more jobs per dollar than polluting alternatives. World Resources Institute. Retrieved January 12, 2025, from https://www.wri.org/insights/green-investments-create-more-jobs-polluting-alternatives

[28] Masterson, V. (2022, September 22). This map reveals clean energy jobs now outnumber fossil-fuel ones. World Economic Forum. Retrieved January 12, 2025, from https://www.weforum.org/stories/2022/09/iea-clean-energy-jobs/

[29] IEA. (2022). World energy employment. Retrieved January 23, 2025, from https://iea.blob.core.windows.net/assets/a0432c97-14af-4fc7-b3bf-c409fb7e4ab8/WorldEnergyEmployment.pdf

[30] IRENA. (2023, November 13). Renewable energy and jobs: Annual review 2023 10th EDITION. Retrieved December 20, 2024, from https://www.irena.org/Digital-Report/Renewable-energy-and-jobs-Annual-review-2023

[31] Ibid.

[32] Ibiwoye, D. (2015, January 27). Lagos to deploy 172 solar powered panels in public schools. Vanguard Online Newspaper. Retrieved December 24, 2024, from https://www.vanguardngr.com/2015/01/lagos-deploy-172-solar-powered-panels-public-schools/

[33] Nigerian Upstream Petroleum Regulatory Commission. (2024, July 25). Nigeria: leading crude oil producer in Africa. Retrieved November 21, 2024, from https://www.nuprc.gov.ng/nigeria-leading-crude-oil-producer-in-africa/#:~:text=Nigeria%20continues%20to%20dominate%20as,barrels%20per%20day%20(mbpd).

[34] Global Methane Pledge. (2024). Nigeria - GMP Methane Action Update (September 2024). Retrieved December 20, 2024, from https://www.globalmethanepledge.org/news/nigeria-gmp-methane-action-update-september-2024

[35] Department of Climate Change Federal Ministry of Environment. (2018, December). Nigeria’s national action plan (NAP) to reduce short-lived climate pollutants (SLCPs). Retrieved January 23, 2025, from https://climatechange.gov.ng/wp-content/uploads/2020/09/ nigeria-s-national-action-plan-nap-to-reduce-short-lived-climate-pollutants-slcps-.pdf

[36] United Nations Climate Change. (2022). Nigeria first NDC (updated submission; 2022, June 2). Retrieved December 24, 2024, from https://unfccc.int/documents/497790

[37] Nigerian Gas Flare Tracker. (2014, July 6). Satellite gas flare tracking from NOSDRA. Retrieved December 27, 2024, from https://nosdra.gasflaretracker.ng/data.html

[38] United States Environmental Protection Agency. (n.d.). Natural gas STAR program: vapor recovery units. Retrieved January 23, 2025, from https://www.epa.gov/natural-gas-star-program/vapor-recovery-units

[39] Zeeco. (n.d.). Flare gas recovery units (FGRU). Retrieved January 23, 2025, from https://www.zeeco.com/products/flare-gas-recovery

[40] Ipieca. (n.d.). Green Completions (2014). Retrieved December 27, 2024, from https://www.ipieca.org/resources/energy-efficiency-compendium-online/green-completions-2014

[41] Norwegian Offshore Directorate. (n.d.). Advanced well completion, chapter 4: Recovery. Retrieved January 27, 2024, from https://www.sodir.no/en/whats-new/publications/reports/resource-report/resource-report-2017/recovery/adopt-new-technology/drilling-production-wells/advanced-well-completion/

[42] United States Environmental Protection Agency. (2024). Leak detection and repair - a best practices guide. Retrieved December 27, 2024, from https://www.epa.gov/sites/default/files/2014-02/documents/ldarguide.pdf

About the author
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Mahmoud Ibrahim Mahmoud

Dr. Mahmoud Ibrahim Mahmoud is an accomplished Geospatial Information and Environmental Scientist specialising 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 APRI – Africa Policy Research Institute.

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