Reps to probe ‘$9bn revenue loss’ from gas flaring

Tajudeen Abbas, speaker of the house of representatives, has set up an ad hoc committee to investigate an alleged $9.05 billion revenue loss from gas flaring in Nigeria in the last ten years. 

Abbas, at the inauguration of the committee on Monday, charged members to get root the causes of gas flaring and make recommendations to end the menace.

He said the probe was an acknowledgement of the urgent need to understand and mitigate the environmental, social, and economic impacts of the practice.

“The task before this ad hoc committee is a very critical one that lies at the heart of the health of our people and economic well-being of our nation,” he said. 

“You have been charged with the responsibility of investigating, perhaps, one of the most harmful practices in the oil and gas industry in Nigeria.

“Gas flaring and venting has been a significant environmental, economic, health, and social concern in our country for many years.

“The flared gas represents lost revenue that could have been generated through its sale or utilization. Official records indicate that we lose about $2.5 billion annually to gas flaring.” 

As a major contributor to climate change and environmental degradation, Abbas said gas flaring has direct and indirect impacts on soil, water, and wildlife.

The act, he added, represents a tremendous waste of valuable resources.

The lawmaker said gas is a precious energy source that “could be utilised for various purposes, such as electricity generation, heating, or industrial processes”.

On his part, Babba Munir, the chairman of the committee, said the members were representing the interest of all Nigerians.

He said the issue of gas flaring had lingered for decades despite several undertakings by oil companies to stop it.

“We are here to give everyone a fair hearing, to know where the loopholes are, where we need to tweak our laws to ensure we get optimal result,” he said. 

“We do not have to revisit how important it is to our revenue drive needed for infrastructure, security, education, and health.

“It is a win-win situation for even the oil companies, because if revenues are generated, it was spent on securing our nation, on infrastructure that will better their operations.

“We are insisting and putting our feet down that all agencies of government and oil companies…

“…once you are invited, we expect you to come with your full submissions and with the highest representation of your organisation.” 

The committee invited Total/Mobil V domestic wing, Total/Oando joint venture (JV), Total Energies, African Petroleum (AP) Plc, now Ardova Plc among others, to appear on or before Tuesday.