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

This policy brief by the Africa Policy Research Institute argues that Nigeria can transform its methane emissions from the oil and gas sector into an economic asset. By capturing wasted gas from flaring, venting, and leaks, Nigeria could unlock significant annual value, improve energy access, and meet climate commitments through a structured governance and commodification strategy.

• Nigeria experiences substantial economic losses due to methane emissions in the oil and gas sector, which stem from flaring, venting, fugitive leaks, oil-spill biodegradation, polluted sediment flux (specifically in the Ogoni axis), and abandoned wells. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) estimates that 250–300 million standard cubic feet per day (MMscfd) of gas is wasted, representing an annual loss of USD 1.2–1.4 billion at domestic prices, or over USD 2.5 billion when valued as liquified natural gas (LNG).
• Capturing and commercialising at least 50% of currently wasted methane could generate an estimated USD 1.5–2 billion in annual value for Nigeria. This value would be derived from power generation, petrochemical feedstocks, CNG or micro-LNG solutions, and digital economy applications including data centres, Bitcoin mining, and artificial intelligence and machine learning workloads. Such a strategy is estimated to create between 50,000 and 80,000 specialised technical jobs.
• The document proposes a phased implementation timeline for methane mitigation: the short term (2026) focuses on deploying satellite and ground-based measurement, reporting and verification (MRV) systems and regulatory reforms; the medium term (2027–2029) focuses on scaling gas-to-power, CNG, and micro-LNG projects; and the long term (2030–2033 and beyond) aims to phase out routine flaring and venting and remediate abandoned wells.
• A fragmented regulatory landscape is identified as a primary barrier to methane capture. The brief recommends establishing a Methane Governance Council to coordinate regulatory, environmental, fiscal, and climate agencies, and suggests a structural review of the Petroleum Industry Act (PIA) to integrate the National Oil Spill Detection and Response Agency (NOSDRA) into its framework.

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} }