Nigeria’s natural gas industry recorded a dual milestone in July 2025, with production surging to 7.59 billion standard cubic feet per day (bscfd) while gas flaring dropped to 7.16 per cent, according to fresh data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The development highlights Nigeria’s growing capacity to boost supply while aligning with its 2030 zero-flare target, a benchmark for energy transition and environmental sustainability.
Sustained Growth in Gas Output
NUPRC data showed that July’s figure represents an 8.58 per cent jump over the 2024 average of 6.99 bscfd and a 9.84 per cent increase compared with 2023’s 6.91 bscfd. This upward trajectory confirms a three-year growth trend, cementing natural gas as the backbone of Nigeria’s evolving energy economy.
The Commission stressed that the surge stemmed from a mix of increased upstream activity, better compliance with production targets, and strategic utilisation of marginal fields.
Flaring Drops Amid Rising Volumes
Despite higher production, Nigeria cut flaring levels to 7.16 per cent in July, down from 7.55 per cent in 2024 and 7.38 per cent in 2023.
NUPRC attributed this decline to aggressive programmes such as the Nigerian Gas Flare Commercialisation Programme (NGFCP), a Decarbonisation Blueprint, and the introduction of Carbon Capture and Storage (CCS) in upstream projects.
“The simultaneous growth in output and decline in flaring demonstrates Nigeria’s ability to expand supply while reducing emissions,” the Commission stated.
Domestic Supply Strengthens
Domestic Gas Delivery Obligation (DGDO) performance also inched upward, with July deliveries hitting 72.5 per cent, compared to 71.8 per cent in June.
From January to July 2025, DGDO compliance fluctuated between 70.8 and 73.7 per cent, reflecting gradual improvements in distribution despite infrastructure and payment bottlenecks.
Contract Structure and Utilisation
Gas production by contract type in July was dominated by:
- Marginal Sole Risk (63%): driven by formerly marginal fields now repositioned under Sole Risk frameworks.
- Production Sharing Contracts (24%): led by deepwater assets.
- Joint Ventures (10%): reflecting constrained investments.
- Independent Sole Risk operators (3%).
Utilisation patterns revealed that 35.88 per cent of gas went to exports, 27.82 per cent served the domestic market, and 29.13 per cent was retained for upstream operations including reinjection, fuel, and lifting.
Gas-to-Power Rises
Nigeria’s gas-to-power supply climbed 3.48 per cent month-on-month, from 833.86 mmscf/d in June to 862.86 mmscf/d in July, marking its strongest performance in three months.
Over the first seven months of 2025, daily deliveries fluctuated but held above 780 mmscf/d, reinforcing gas as a critical stabiliser for Nigeria’s electricity grid.
Outlook
Analysts expect gas output to remain strong through Q4 2025, supported by upstream investment inflows and ongoing decarbonisation strategies. However, sustaining low flaring rates will require accelerated infrastructure rollouts, especially in processing and transmission.
For Nigeria, the July numbers signify more than production gains they mark progress in balancing energy security, investment, and climate goals.