Nigeria's Energy Sector Faces Billions Lost to Gas Flaring as Power Reforms Advance

A World Bank Global Gas Flaring Tracker released in June 2026 warned that Nigeria is losing an estimated US$54 billion a year as gas is burned off instead of captured, placing the country among nine that account for over 80 % of global flaring. The report said eliminating routine flaring would require US$70‑100 billion in upfront investment and highlighted weak pipeline infrastructure, undeveloped gas markets and limited regulatory enforcement as key barriers.

At the same time, President Bola Tinubu’s administration is pursuing major power‑sector reforms. The Presidential Power Sector Debt Reduction Programme (PPSDRP) authorises up to N4 trillion in bonds to settle arrears owed to generation and gas companies. A N501 billion Series 1 bond issued in late‑2025 was oversubscribed, and by early‑2026 payments to GenCos and GasCos began. Settlement agreements worth roughly N2.28 trillion have been signed, aiming to restore financial viability, attract investment and improve electricity supply for households and industry.