Nigeria, Eight Other Countries Account for 83% of Global Gas Flaring Worth $54bn – World Bank

Nigeria has been listed among nine countries responsible for more than 83 per cent of global gas flaring in 2025, according to a new World Bank report that also estimated the practice wasted about $54 billion worth of enery resources during the period under review.

The report, released by the World Bank’s Global Flaring and Methane Reduction Partnership (GFMR) in collaboration with the Payne Institute at the Colorado School of Mines, identified Nigeria alongside Russia, Iran, Iraq, Venezuela, Mexico, Libya, Algeria and the United States as the dominant contributors to global gas flaring.

Collectively, the nine countries accounted for about 46 per cent of global crude oil production, yet were responsible for more than four-fifths of all gas flared worldwide, underscoring the scale of inefficiencies in the global oil and gas value chain.

Gas flaring refers to the burning of natural gas produced during crude oil extraction, rather than capturing it for domestic use, industrial applications or export. While often used as a pressure-relief mechanism in oil production, the practice is widely criticised for wasting energy resources and significantly contributing to greenhouse gas emissions.

According to the report, global gas flaring rose for the third consecutive year, increasing from 157 billion cubic metres (bcm) in 2024 to 167 bcm in 2025, signalling a continued setback in global efforts to curb emissions from the oil and gas sector.

The World Bank estimated that the flared gas in 2025 generated about 429 million tonnes of carbon dioxide equivalent emissions, including approximately 50 million tonnes of unburned methane, a greenhouse gas significantly more potent than carbon dioxide.

For Nigeria, the findings come at a time when the country is intensifying efforts to reposition natural gas as a key pillar of its energy transition agenda. The Federal Government has repeatedly pledged to end routine gas flaring through policy frameworks such as the Nigerian Gas Flare Commercialisation Programme (NGFCP), alongside efforts to attract investment into gas infrastructure and utilisation projects.

Nigeria holds one of Africa’s largest proven natural gas reserves and has continued to promote gas development as a pathway to expand electricity generation, deepen industrialisation, support gas-based manufacturing and increase foreign exchange earnings.

However, the latest report suggests that significant structural challenges continue to hinder progress, particularly in the area of infrastructure required to capture and commercialise associated gas that is otherwise flared.

It noted that more than 60 per cent of the increase in global flaring in 2025 came from Russia, Mexico and Iran, with Russia maintaining its position as the world’s largest gas flaring country after recording a nine per cent increase in flaring volumes.

Globally, the report said the volume of gas flared in 2025 exceeded the amount of liquefied natural gas (LNG) transported through the Persian Gulf within the same period, and was roughly equivalent to Africa’s total annual gas consumption.

The World Bank valued the wasted gas at about $54 billion, describing the figure as a significant loss of potential revenue and energy security benefits at a time of rising global demand for cleaner fuels.

The report further estimated that eliminating routine gas flaring worldwide would require between $70 billion and $100 billion in upfront investment. It stressed that the technologies needed to capture and utilise associated gas already exist, but identified inadequate infrastructure, weak gas markets, financing constraints and poor regulatory enforcement as major barriers.

Despite the overall increase in global flaring, the report highlighted some progress in selected countries. The United States reduced flaring by about seven per cent, supported by the commissioning of the Matterhorn Express Pipeline, while Kazakhstan recorded an 87 per cent reduction since 2012, driven by stronger regulation and sustained investment in gas infrastructure.

The World Bank concluded that these examples demonstrate that gas flaring can be significantly reduced when supported by strong policy frameworks, regulatory enforcement and infrastructure investment, adding that such measures can simultaneously improve energy security, expand gas supply for power generation and industrial use and reduce global emissions.