The US has set a benchmark in the oil & gas industry, becoming the first country to export 10.1 million metric tonnes (mmt) of Liquefied Natural Gas (LNG) in a single month in October.
With the European benchmark for gas trading at $10.88 per million British thermal units (mBtu) in October, the US revenue from this single month’s export volume is estimated at approximately $5.71 Billion. This figure highlights the wealth generated by monetising natural gas.
The contrast with Nigeria, which boasts the largest gas reserves in Africa, could not be more painful. While the US collects billions, Nigeria continues to burn its resource. World Bank data for 2024 shows Nigeria recorded a troubling 12% increase in flaring volume, the second largest global rise.
The National Oil Spill Detection and Response Agency (NOSDRA) data further confirms Nigeria lost an estimated $1.1 billion (N1.7 trillion) in potential revenue to gas flaring in 2024 alone. This stark paradox demands immediate action.
6 URGENT REASONS for Nigeria to Learn from the U.S. LNG Boom
1. The Financial Loss: Closing the $5.7 billion revenue gap
The US success shows that every cubic foot of gas is a potential source of national wealth. Nigeria’s $1.1 billion annual loss to flaring is an economic hemorrhage that must be immediately stopped. The U.S. revenue of $5.71 Billion from just one month of LNG export offers a powerful lesson: stopping flaring is a direct, multi-billion-dollar injection into the national economy. Nigeria needs to see gas as its primary source of foreign exchange and rapidly deploy technology to capture and monetize it .
2. The Human and Environmental Catastrophe:
Flaring is not just an economic issue; it’s a severe public health crisis in the Niger Delta. The practice releases toxic gases and contributes significantly to climate change.
“Flaring is a violation of human rights… Nowhere else in the world have communities been subjected to it on such a scale,” noted one civil society report, highlighting the profound health damage and environmental degradation suffered by the Niger Delta people.
Urgent action is required to stop the emission of 7.4 million tonnes of CO2 (from H1 2023 data) and protect citizens from respiratory illnesses and climate risks.
3. The infrastructure & investment imperative:
The U.S. record was achieved through massive private investment in liquefaction terminals and extensive pipeline networks that connect wells to the global market. Nigeria’s flaring problem is rooted in a fundamental lack of infrastructure to gather the gas. The solution requires Nigeria to:
- Create an attractive, stable environment for both local and international investors.
- Rapidly fund and build the gas gathering, processing, and pipeline facilities needed to move gas from fields to export terminals like NLNG.
4. The Power Paradox:
The U.S. model proves that massive exports can coexist with a robust domestic energy supply. The gas that Nigeria flared in 2024 had the potential to generate 30,100 Gigawatts-hour (GWh) of power.
This energy could solve Nigeria’s chronic electricity shortages, fueling rapid industrialization and creating jobs. Prioritising gas utilization for power generation is a key lesson from the U.S. and a vital step toward domestic stability.
5. The Policy and regulatory failure:
Nigeria has both laws and a commitment to achieving zero routine flaring by 2030. However, the 12% rise in flaring volume in 2024 indicates a failure in enforcement and follow-through.
“The persistence of gas flaring has raised questions about the effectiveness of the extant laws and the role of law makers in the elimination/reduction of the hazardous act,” noted a legal analysis.
The Nigerian Gas Flare Commercialisation Programme (NGFCP) must be fully executed, penalties must be made steep enough to deter the practice, and the government must demonstrate the political will to hold major operators accountable.
6. The need for a strategic vision:
For decades, Nigeria treated its massive gas reserves as a mere inconvenient by-product of oil production. The U.S. success is the result of a long-term strategy that recognized gas as a primary resource.
Nigeria must immediately adopt a gas-centric strategic vision that treats its 200+ trillion cubic feet of reserves as a separate, critical economic engine, driving industrial growth, job creation, and energy diversification across the country.
Read more on Four things to know as US becomes first country to export 10.1 million tonnes of LNG
