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By
Olubayo Oluduro
PhD candidate,
University of Ghent
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Oil is the mainstay of Nigerian economy and
the Niger Delta is the region that hosts the
Nigeria’s oil industry
Nigeria is in joint venture partnership with oil
multinational companies like Shell,
ExxonMobil, Texaco/Chevron, Agip, Total etc
While Russia ranked as the top gas flarer in
the world with 50.7 bcm, Nigeria ranked
second with 23 bcm, thus accounting for
about 13% of global flaring
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While 99% of associated gas is used or reinjected into the ground in the US. and
Western Europe, Nigeria flares about 76%
Gas has been flared in Nigeria since oil was
discovered and there are more than 100 gas
flare sites, some of which are located within
residential areas
The economic loss as a result of gas flaring is
about $2.5 billion in government revenues
and $72 billion for the period 1970-2006
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lack of necessary technology for the gathering
and conserving the gas flared
low gas demand in the domestic and regional
markets and low level of environmental
consciousness of the consequences of gas flaring
failure of the government to meet its financial
contribution under the existing joint venture
lack of clearly defined long-term vision for the
gas sector
lack of robust fiscal, legal, and regulatory
framework and institutions to interface with
foreign investors
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Petroleum (Drilling and Production) Regulation
1969.
The Associated Gas Re-Injection Act of 1979. It
provides that no company engaged in the
production of oil and gas shall after 1st January,
1984 flare gas produced in association with oil
without the permission in writing of the Minister
The Minister made the Associated Gas ReInjection (Continued Flaring of Gas) Regulations
1984 which provide for exemptions to the earlier
general ban on flaring
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Associated Gas Re-Injection (Amendment) Decree
1985 permits a company engaged in the production
of oil or gas to continue to flare gas in a particular
field(s) on the payment of a fee prescribed by the
Minister
This Decree fixed a fine of 2 kobo (equivalent to
$0.0009 in 1985) and was again raised in January
1998 to N10 ($11 ¢) for every 1000 scf of gas flared
Associated Gas Re-Injection Act 2004 and the
Associated Gas Re-Injection (Amendment) Act 2004
which made it compulsory for all oil producing
companies in the country to submit detailed plans for
utilisation of their gases
Deadline was shifted from 2004 to 2008, and again
to 2009
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the flare-down penalty was increased to $3.50 in 2008 for
every 1,000 standard cubic feet of associated gas flared
In January 2010, the House of Representatives fixed 31st
December, 2012 as the terminal date of gas flaring in
Nigeria
Two important bills are at the National Assembly:
Associated Gas Re-Injection (Amendment) Bill 2008 which
seeks to extend the deadline for flaring of gas to 31
December 2008 and to impose a fine of N410.00 (about
$3.00) per standard cubic feet of gas flared; and the Gas
Flaring (Prohibition and Punishment) Bill 2009 which
prohibits the flaring of both associated and nonassociated gas and makes the penalty equal to what is
applicable in the international market
Fines can never compensate for the harmful effect of gas
flaring on the lives of the people
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Biodiversity laws in Nigeria include the Convention on
Biological Diversity (CBD) 1992, the Ramsar
Convention, the Convention on International Trade in
Endangered Species of Wild Fauna and Flora (CITES
1973), etc which recognises the need for Nigeria to
protect biological resources
there is non-applicability of the national laws on
biodiversity conservation to the Niger Delta areas as
result of the fear that it will affect the oil exploration
activities
African Charter on Human and Peoples’ Rights
already domesticated into Nigeria municipal law
provides that ‘All people shall have the right to a
general satisfactory environment favourable to their
development
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Nigeria signed the United Nations Framework
Convention on Climate Change (UNFCCC) 1992
Nigeria also ratified the 1997 Kyoto Protocol aims at
strengthening the international response to climate
change, and promote the ultimate objective of
UNFCCC
Nigeria as a non-Annex 1 country, is eligible to host
Clean Development Mechanism (CDM) projects that
can earn revenue from the sale of carbon credits
Nigeria has also joined the Global Initiative for Gas
Flaring Reduction (GGFR)
Nigeria still contributes about 70 million metric tons
of CO2 to global emissions a year contrary to its
obligations under these instruments
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Nigerian gas-flaring reduction projects and
other Institutional Frameworks, e.g. Nigeria
Liquefied Natural Gas (NLNG) 1985; SPDC’s
Gbarain-Ubie Integrated Oil and Gas Project
(IOGP); The West African Gas Pipeline (WAGP);
Trans-Saharan Gas Pipeline (TSGP)
Delay in completing several of these gas
gathering projects confirms the lack of
commitment on the part of the government
and the joint venture partners to end gas
flaring
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National Assembly has passed a bill authorising a National
Climate Change Commission but yet to harmonise the two
versions of the Bill
Establishment of the Special Climate Change Unit (SCCU) within
the Federal Ministry of Environment (FME) to specifically deal
with and co-ordinate Climate Change issues in Nigeria
Inauguration of the Presidential Implementation Committee on
the Clean Development Mechanism (CDM) as the body to
organize CDM activities in Nigeria
The above commitments are yet to have any appreciable impact
on the reduction of gas flaring eg. in 2008, Chevron still flared
over 84% of its gas
Significant part of the slight reduction in flaring may well be as a
result of increased ‘unassociated gas’ produced and ‘shut in’
production (Ecumenical Council for Corporate Responsibility
(ECCR) Report, 2010)
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Flaring in Nigeria contributes a great deal to global
emission of greenhouse gases
The corrugated iron roofs of Nigerian villagers that
used to have a life span of up to 20 years now last
less than 5 years owing to the effect of gas flare
Heat from the flares kills vegetation around the flare
area and diminishes agricultural production leading
to the problem of food insecurity
Gas flaring affects wildlife in that the bright light the
flares produce disturbs wildlife forcing them to
migrate
The roaring noise, intense heat causes discomforts
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The use the toxic flames by Niger Delta women to dry
food may result in the poisoning of the foods
It was estimated that in Bayelsa State alone, flaring is
likely to cause 49 premature deaths, 4,960 child
respiratory illnesses among children, 120,000 asthma
attacks, and 8 additional cases of cancer each year
(ERA & Climate Justice Programme, 2005)
Gas flaring is reportedly responsible for the falling in
the life expectancy in the Niger Delta from 70 years
to about 45 years
In the event of climate change resulting in rising of
the sea levels, Niger Delta located in the coastal
region may likely disappear or submerge
The sea-level rise will also affect the oil companies
in terms of oil installations located in the region
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Implicated above are the rights to life, health,
water, food, housing and property, privacy, and
generally, a healthy environment
There have been relatively few cases filed in
Nigeria in which human rights law has been
invoked for climate-change related harms.
Jonah Gbemre v. SPDC Nig. Ltd. and 2 others
Shell v. Ijaw Aborigines of Bayelsa State
Ikechukwu Opara & Others v. SPDC Nig. Ltd. and
5 others
The oil companies exploit the weaknesses in the
local laws and in the courts to deprive the victims
of environmental harm justice
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Absence of the political will to enforce the domestic and
international environmental laws
Power imbalance among the stakeholders in oil industry
Absence of a national legal framework that meets the
demands of climate change mitigation and adaptation, and
which clearly addresses global warming
Unavailability of adequate information and data needed to
tackling climate change impacts
Lack of appropriate technology
Lack of capacity for effective implementation of climate
change policies and treaties
government overdependence on oil
Corruption
Insecurity in the Niger Delta region
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A strong political will to enforce the regulations and
policies on gas flaring and climate change
Ensure that there is good governance
The domestication and enforcement of international
environmental treaties to which Nigeria is a signatory
Development of a strong partnership with developed
nations for technology, knowledge and funding
A strong partnership with the private sector and civil
society
The integration of human rights in climate change
law and policy, including imposition of human rights
duties on MNCs
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Thank you for listening