Economy
Nigeria Cuts Gas Flaring to 8%, Target 0% by 2025
By Adedapo Adesanya
The federal government has pledged to end gas flaring by 2025 following the significant reduction to eight per cent.
The pledge was made by the Minister of State for Petroleum Resources, Mr Timipre Sylva, on Monday at a public hearing on gas flaring organised by the House of Representatives in Abuja.
The Minister said that the public hearing was an opportunity to update the records and to bring stakeholders up to speed on happenings in the sector.
He said that elimination of gas flaring was an issue the ministry was taking seriously, saying it was committed to achieving the global consensus on elimination of gas flaring by 2025.
“Today, we have actually reduced gas flaring significantly to a very minimal level of eight per cent.
“If you all recall, in 2020, the ministry of petroleum started what we call the National Gas Expansion Programme and we declared the year 2020 as the year of gas.
“At the beginning of this year, we also declared the year 2021 the beginning of the gas decade. We believe that with all the programmes we have in place, we are on course to achieving complete elimination of gas flaring by the year 2025,” he said.
The Minister recalled that in December 2020, the ministry rolled out a gas penetration programme, noting that it was aggressively pursuing it to attain total elimination and utilisation of gas that was being flared today.
Also speaking, the Minister of Environment, Mr Muhammed Abubakar, said that gas flaring was one environmental challenge a lot had been said about.
Represented by the Director of Environment, Mr Abah Suleman, Mr Abubakar said that gas flaring leads to global warming.
“The fear that the earth might snowball into a runaway greenhouse effect as we have on planet Venus is one of the major reasons why it has been globally accepted that all hands must be on deck to ensure that gas flares are totally put out.
“The federal government has made commitments to the Paris Agreement of the United Nations Framework Convention on Climate Change through our intended national determined contribution.
“The Ministry of Environment is highly desirous and has been giving support to the Ministry of Petroleum in this regard.
“As far back as 2003, when the ministry along some oil companies pushed for the use of compressed natural gas, which went comatose.
“I am happy to say that the administration of President Muhammadu Buhari has kick-started the programme,” he said.
Mr Abubakar said that the ministry had embarked on a programme that would accurately track gas flaring across the country.
He pledged the ministry’s support to enforce all laws and policies to ensure that Nigeria meets its global commitments on gas.
On his part, the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Mr Mele Kyari, said that gas has an attractive value, adding that no one would want to flare gas when it could be commercialised but there must be a perfect framework to achieve that.
“We are connecting most part of the country to the gas network so that people can convert this gas either for power or industrial use and we hope to achieve this by the end of March.
“It is business that makes people invest, no matter how much penalty you put, if the cost of the penalty is cheaper than the cost of developing the gas that may not be commercial, people will continue to flare gas and pay the penalty.
“You can raise the penalty to any number and what it does, it completely makes people not to invest in anything, so increasing the penalty is not the solution.
“The solution is to clear the commercial towns that will enable companies to invest in this flare so that we can convert them into money,” he said.
He said that the harm gas flaring was doing to communities and the environment would go away if commercialised, pledging to work with the National Assembly to put in place every structure required to end gas flaring in the country.
By Adedapo Adesanya
The Naira depreciated on the American currency in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, January 15 by 0.09 per cent or N1.45 to close at N1,551.10/$1 compared with the preceding day’s N1,549.65/$1.
It was the fourth straight session the local currency was losing value on the greenback in the official forex market as the deadline to end the access of Bureaux De Change (BDCs) to the official trading platform nears.
Also, Nigeria’s inflation neared a 29-year high as it rose for the fourth straight month to 34.80 per cent in December 2024 spurred by high festive activities.
On the British currency, which is the Pound Sterling, the domestic currency depreciated by N24.79 to wrap the session at N1,904.43/£1 versus the previous day’s N1,879.64/£1 and against the Euro, it weakened by N14.74 to sell for N1,600.79 per Euro versus N1,586.05/€1.
At the parallel market, the Nigerian Naira traded flat against the US Dollar yesterday at N1,650/$1, according to data obtained by Business Post.
In the cryptocurrency market, most of the tokens gained as the anticipation of Mr Donald Trump’s inauguration as US president is building bullish sentiment for the market, which was also encouraged by a highly anticipated CPI inflation data report in the US.
Litecoin (LTC) grew by 17.7 per cent to quote at $119.82, Ripple (XRP) expanded by 9.0 per cent to a six-year high of $3.10, Solana (SOL) appreciated by 7.2 per cent to trade at $202.81, Dogecoin (DOGE) rose by 5.3 per cent to finish at $0.3789, Ethereum (ETH) increased its value by 4.7 per cent to end at $3,376.28, and Cardano jumped by 3.3 per cent to settle at $1.06, Bitcoin (BTC) gained 2.8 per cent to close at $99,707.22, and Binance Coin (BNB) improved by 1.6 per cent to trade at $710.31, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Adedapo Adesanya
The oil market rose more than 2 per cent on Wednesday, supported by a large draw in US crude stockpiles and potential supply disruptions caused by new US sanctions on Russia.
Brent crude futures appreciated by $2.11 or 2.64 per cent to $82.03 a barrel and the US West Texas Intermediate (WTI) crude grew by $2.54 or 3.28 per cent to close at $80.04 a barrel.
The US Energy Information Administration (EIA) reported an inventory dip of 2 million barrels for the second week of the year.
The change estimated by the EIA compared with a modest draw of around 1 million barrels for the previous week, which also saw sizable fuel inventories build that dragged oil prices lower.
For the week to January 10, the EIA estimated an inventory build of 5.9 million in gasoline, with production averaging 9.3 million barrels daily. This compared with a build of as much as 6.3 million barrels for the previous week when production averaged 8.9 million barrels daily. That build was the second sizable weekly one after 2024 ended with a build of 7.7 million barrels in gasoline inventories.
The latest round of US sanctions on Russian oil could disrupt Russian oil supply and distribution significantly, the International Energy Agency (IEA) said in its monthly oil market report.
The Paris-based agency said that the sanctions on Iran and Russia cover entities that handled more than a third of Russian and Iranian crude exports in 2024, adding that the market will be in surplus this year as supply growth led by countries outside the Organisation of the Petroleum Exporting Countries and its allies, OPEC+ exceeds subdued expansion in world demand.
This aligns with an earlier projection by the EIA which assumes that OPEC+ would roll back its production cuts and that non-OPEC production would continue leaping forward.
Limiting the gains was fresh developments in the Middle East as Israel and Hamas agreed to a deal to halt fighting in Gaza and exchange Israeli hostages for Palestinian prisoners.
OPEC in its monthly oil report on Wednesday forecast stronger demand growth than the IEA of 1.45 million barrels per day this year and, in its first look at 2026, predicted a similar expansion of 1.43 million barrels per day next year.
OPEC expects global oil demand to rise by 1.43 million barrels per day in 2026, maintaining a similar growth rate to 2025.
By Dipo Olowookere
Sustained profit-taking in high-cap stock like Dangote Cement deepened the woes of the Nigerian Exchange (NGX) Limited on Wednesday.
The domestic equity market lost 1.47 per cent at midweek as the National Bureau of Statistics (NBS) revealed that inflation in Nigeria was further elevated in December 2024 by 34.80 per cent, prompting investors to maintain their selling pressure stance.
Data showed that the industrial goods index depreciated by 4.70 per cent at the close of business as the insurance sector slumped by 3.47 per cent.
However, the consumer goods space improved by 0.99 per cent, the energy counter appreciated by 0.15 per cent, and the banking industry gained 0.02 per cent.
When the closing gong was struck by 2:30 pm to signal the close of trading activities yesterday, the All-Share Index (ASI) was down by 1,529.59 points to 102,095.95 points from 103,625.54 points and the market capitalisation went down by N933 billion to N62.257 trillion from N63.190 trillion.
Like the preceding trading day, investor sentiment was weak at midweek after Customs Street ended with 28 price gainers and 39 price losers, implying a negative market breadth index.
Universal Insurance and Dangote Cement were the biggest price losers as they shed 10.00 per cent each to close at 63 Kobo, and N387.90, respectively, as John Holt declined by 9.99 per cent to N8.47, Transcorp Power lost 9.97 per cent to close at N324.00, and Omatek tumbled by 9.89 per cent to 82 Kobo.
Conversely, Dangote Sugar, NASCON, and Sunu Assurances chalked up 10.00 per cent each to sell for N36.85, N38.50, and N6.71, respectively, as SAHCO rose by 9.95 per cent to N33.15, and Austin Laz grew by 9.94 per cent to N1.99.
Business Post reports that investors bought and sold 435.5 million equities valued at N9.4 billion in 12,098 deals during the session versus the 503.3 million equities worth N12.6 billion traded in 12,900 deals on Tuesday, indicating a decline in the trading volume, value, and number of deals by 13.47 per cent, 25.40 per cent and 6.22 per cent apiece.
Universal Insurance topped the activity log with the sale of 70.3 million shares for N46.4 million, AIICO Insurance traded 39.7 million equities valued at N67.5 million, Access Holdings exchanged 16.8 million stocks worth N414.0 million, Livestock Feeds transacted 16.8 million shares valued at N106.8 million, and Nigerian Breweries traded 16.2 million equities worth N518.2 million.
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