Gas Flaring Penalties Is Not Revenue

Coalition of Environmental Organizations

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Gas Flaring Penalties Is Not Revenue

Decades of oil and gas exploitation in Nigeria’s Niger Delta have resulted in extensive environmental degradation and public health challenges. A seminal study by Ologunorisa, Temi (2001), published in The International Journal of Sustainable Development & World Ecology, documents the cumulative impacts of gas flaring, including:

• Declining agricultural productivity;
• Depressed flowering and fruiting of crops such as okro and oil palm;
• Increased air pollution and soil and rainwater acidification;
• Accelerated corrosion of residential infrastructure, particularly roofing materials;
• Elevated concentrations of sulphates, nitrates, and dissolved solids;
• Rising incidence of skin and respiratory illnesses; and
• Deepening socioeconomic hardship within host communities.

Despite Section 104 of the Petroleum Industry Act (PIA) 2021, which prohibits gas flaring except under strictly regulated circumstances, routine flaring persists at significant levels, exposing host communities to sustained environmental and health risks.
While Executive Order 9 was introduced as part of broader fiscal transparency reforms, its classification of gas flare penalties as revenues payable into the Federation Account raises serious legal, environmental, and policy concerns.
Gas flare penalties, imposed and collected by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), are designed primarily as regulatory deterrents and environmental sanctions, not as income streams for national revenue distribution.

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Gas Flaring Penalties Is Not Revenue

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