From Waste to Wealth: A National Strategy for Methane Mitigation and Commodification in Nigeria

Nigeria wastes an estimated 250–300 million standard cubic feet per day (MMscfd) of gas through flaring and leakage, representing an annual loss of USD 1.2–2.5 billion. The policy brief argues that capturing and commercialising at least 50% of this wasted methane could unlock USD 1.5–2 billion in annual value, create 50,000–80,000 technical jobs, and improve public health by reducing ground-level ozone pollution. The proposed strategy focuses on existing and legacy infrastructure to avoid fossil fuel lock-in, utilizing low-cost measures like leak detection and repair (LDAR). Implementation is planned across three phases from 2026 to 2033, requiring a unified governance framework and robust measurement, reporting, and verification (MRV) systems to attract climate finance and carbon credits.

• Nigeria experiences significant economic losses due to methane emissions in the oil and gas sector, with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) estimating a waste of 250–300 million standard cubic feet per day (MMscfd) of gas via flaring and leakage. This loss is valued at USD 1.2–1.4 billion annually at domestic prices and over USD 2.5 billion when valued as liquified natural gas (LNG).
• Capturing and commercialising at least 50% of wasted methane across oil and gas systems could generate USD 1.5–2 billion in annual value and create between 50,000 and 80,000 specialised technical jobs. Potential uses for this captured gas include power generation, CNG, micro-LNG, petrochemical feedstocks, and high-performance computing applications like AI and Bitcoin mining.
• Methane mitigation in Nigeria can be achieved through low-cost or negative-cost interventions, specifically systematic leak detection and repair (LDAR), the replacement of high-bleed pneumatic devices, and flare gas recovery initiatives.
• The strategy proposes a phased implementation timeline: the short term (2026) focuses on MRV deployment and pilot projects; the medium term (2027–2029) focuses on scaling gas-to-power and CNG/micro-LNG infrastructure; and the long term (2030–2033+) aims to phase out routine flaring and remediate abandoned wells.
• A fragmented regulatory landscape is a primary barrier to investment; the document recommends a structural review of the Petroleum Industry Act (PIA) and the integration of the National Oil Spill Detection and Response Agency (NOSDRA) into the PIA framework to create a unified governance structure.

APA

Mahmoud, M. I. (2026). From Waste to Wealth: A National Strategy for Methane Mitigation and Commodification in Nigeria. Africa Policy Research Institute. https://afripoli.org/from-waste-to-wealth-a-national-strategy-for-methane-mitigation-and-commodification-in-nigeria

Chicago

Mahmoud, Mahmoud Ibrahim. From Waste to Wealth: A National Strategy for Methane Mitigation and Commodification in Nigeria. Africa Policy Research Institute, 2026. https://afripoli.org/from-waste-to-wealth-a-national-strategy-for-methane-mitigation-and-commodification-in-nigeria.

Wikipedia

{{cite report |last1=Mahmoud |first1=Mahmoud Ibrahim |title=From Waste to Wealth: A National Strategy for Methane Mitigation and Commodification in Nigeria |publisher=Africa Policy Research Institute |date=1 April 2026 |url=https://afripoli.org/from-waste-to-wealth-a-national-strategy-for-methane-mitigation-and-commodification-in-nigeria |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{mahmoud2026from, author = {Mahmoud, Mahmoud Ibrahim}, title = {{From Waste to Wealth: A National Strategy for Methane Mitigation and Commodification in Nigeria}}, institution = {Africa Policy Research Institute}, year = {2026}, month = apr, url = {https://afripoli.org/from-waste-to-wealth-a-national-strategy-for-methane-mitigation-and-commodification-in-nigeria}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }