In a statement issued in Lagos, RDI’s Executive Director, Philip Jakpor, argued that many operators now treat flaring fines as a routine cost of doing business rather than an incentive to invest in gas capture infrastructure.
Rising penalties, persistent flaring
The group’s position is backed by data from the Nigerian Oil Spill Monitor, which tracks environmental incidents and emissions across the oil and gas sector. According to the dataset covering March 2012 to 2025, companies paid an estimated $646 million in gas flaring penalties in 2025—the highest level recorded in the past five years.
Jakpor noted that the historical peak remains the $934 million paid in 2018, when gas valued at $1.6 billion was flared. Although penalty payments declined between 2020 and 2022, they have resumed an upward trend since 2023.
Flared gas volumes followed a similar pattern. Output stood at 349.3 million standard cubic feet (SCF) in 2020, before declining to 264.6 million SCF in 2021 and 230.1 million SCF in 2022. However, volumes increased again to 278.3 million SCF in 2023 and 301.3 million SCF in 2024, indicating a reversal of earlier progress.
“Penalties are not deterrents”
RDI stressed that rising penalty payments should not be interpreted as increased government revenue success, but rather as evidence of regulatory weakness. According to the organisation, oil companies appear more willing to pay fines—described as relatively minimal—than to commit capital toward reducing emissions.
At the current rate of about $2 per 1,000 SCF, Jakpor argued that the penalty regime lacks the financial weight needed to compel compliance, especially given decades of missed deadlines to end gas flaring dating back to 1984.
Environmental and economic costs
Beyond regulatory concerns, the group highlighted the broader impact on host communities in the Niger Delta. Continuous flaring contributes to air pollution, acid rain, and declining agricultural productivity, while exposing residents to harmful emissions.
RDI warned that focusing on penalties as a revenue stream ignores these long-term environmental and public health consequences, which continue to affect livelihoods in oil-producing regions.
Climate commitments under scrutiny
The organisation also questioned Nigeria’s commitment to its net-zero emissions target by 2060, noting that ongoing gas flaring directly undermines climate goals.
RDI maintained that incremental policy adjustments may no longer be sufficient, urging the government to prioritise emission reduction at the source. According to the group, only a complete and enforceable ban on gas flaring can deliver meaningful and lasting change.