Nigeria’s natural gas industry recorded a significant boost in 2025, with total production reaching 2.71 trillion standard cubic feet (scf), underscoring the country’s growing influence in the global gas market. However, despite the gains, persistent gas flaring continues to undermine the sector’s full economic potential.
According to the latest data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), exports accounted for nearly 35 per cent of total production, with 942.7 billion scf shipped overseas. Domestic sales stood at 780.6 billion scf, while 776.6 billion scf was consumed in field operations, bringing total gas utilisation to 2.5 trillion scf, or about 92 per cent of output.
Production was relatively balanced between associated gas (1.456 trillion scf) and non-associated gas (1.25 trillion scf). Output peaked in July at 250.9 billion scf, with May and June also recording strong volumes. September, however, saw the year’s lowest production at 198.3 billion scf, before volumes recovered moderately toward year-end.
Export patterns mirrored production trends. December achieved the highest monthly export of 101.9 billion scf, followed by November and July. Conversely, September exports fell to 45.4 billion scf, coinciding with the production dip. Domestic consumption remained robust in the first half of the year, tapering slightly toward November and December.
Despite these gains, gas flaring remains a major concern. In 2025, around 204 billion scf, or 7.54 per cent of total production, was flared. September recorded the highest flare rate at over nine per cent, while July accounted for the largest absolute volume of flared gas. Lower flare levels were observed in November and December.
The persistence of flaring reflects ongoing structural and infrastructure constraints that limit Nigeria’s ability to fully monetise its gas resources. To address this, the NNPC/Heirs Energies OML 17 Joint Venture in October 2025 signed Gas Flare Commercialisation Agreements under the Nigerian Gas Flare Commercialisation Programme (NGFCP). The initiative aims to redirect flare gas for productive use, including electricity generation, industrial supply, cooking gas, and compressed natural gas.
The agreements marked a shift from regulatory planning to operational execution, connecting operators with approved flare gas buyers to ensure previously wasted gas is monetised effectively.
The 2025 data illustrate a dual reality for Nigeria’s gas sector. On one hand, production growth and strong exports signal an expanding commercial footprint. On the other, the continued flaring of over 200 billion scf highlights the urgent need for infrastructure investment, increased domestic utilisation, and robust commercial frameworks.
As global demand for cleaner energy rises, Nigeria faces a critical challenge: balancing export revenue, domestic energy needs, and environmental responsibilities. How effectively the country addresses flaring and optimises gas utilisation will determine the trajectory of its gas sector in the coming years.
By Juliet Ezeh, Abuja
