Nigeria’s gas sector showed notable gains in July 2025, with data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) pointing to a three-month high in gas-to-power supply, a steady rise in overall gas production, and a continued reduction in flaring rates.
The figures, which were released on Saturday, while positive, also highlight the complexity of balancing production growth, energy delivery, and environmental sustainability in Africa’s largest economy.
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Gas-to-Power Supply at a Three-Month High
According to NUPRC, average daily gas-to-power deliveries rose 3.48 percent month-on-month, climbing from 833.86 million standard cubic feet per day (mmscf/d) in June to 862.86 mmscf/d in July. This represents the highest monthly level recorded since April, when deliveries averaged 886.7 mmscf/d.
Looking at the year-to-date trend, gas-to-power supply began at a relatively low 780.23 mmscf/d in January but showed steady improvement through February (849.37 mmscf/d) and March (886.83 mmscf/d) before dipping slightly in May and June.
The July recovery suggests improved performance from power generation facilities, stronger compliance with the Domestic Gas Delivery Obligation (DGDO), or better coordination between producers and offtakers.
Production Growth Strengthens
Beyond power sector supply, Nigeria’s gas production has been steadily increasing. NUPRC reported that daily output reached 7.59 billion standard cubic feet per day (bscfd) in July 2025. This figure reflects an 8.58 percent increase over the full-year average of 6.99 bscfd in 2024 and an almost 10 percent jump compared to the 2023 daily average of 6.91 bscfd.
The growth trend points to the resilience of Nigeria’s upstream gas industry, which has remained a key pillar of the country’s energy transition strategy.
With government plans to expand domestic gas use through power generation, industrial applications, and transportation (via compressed natural gas), these production gains are crucial for meeting demand and reducing reliance on imported fuels.
Gas Flaring Falls Further
Perhaps the most significant achievement highlighted by NUPRC is the continued decline in gas flaring, which fell to 7.16 percent in July, one of the lowest rates on record. This compares favorably with the 7.55 percent average in 2024 and the 7.38 percent recorded in the same period of 2023.
Reducing flaring while production is rising is a particularly challenging feat, suggesting that programmes like the Nigerian Gas Flare Commercialisation Programme (NGFCP) and the commission’s Decarbonisation and Sustainability Blueprint are beginning to deliver results.
NUPRC’s stated goal is to eliminate routine flaring entirely by 2030, aligning with Nigeria’s broader climate commitments.
Contract Types and Utilisation Patterns
NUPRC’s data also provides insight into how gas is produced and consumed. The bulk of output in July came from marginal sole risk operations (63 percent), followed by production sharing contracts (24 percent), joint ventures (10 percent), and traditional sole risk operators (3 percent).
In terms of utilisation, 35.88 percent of the gas produced was exported, 27.82 percent supplied to the domestic market, and 29.13 percent used for field and plant operations, including gas reinjection and fuel use. This balance reflects the dual role of Nigeria’s gas industry as both a domestic energy enabler and a foreign exchange earner through exports.
What the numbers indicate
The July 2025 numbers tell a story of cautious optimism. Gas-to-power supply is trending upward, production is expanding, and flaring is being brought under control.
However, the fact that nearly 30 percent of production is still consumed internally for operations, and that domestic supply remains under 30 percent, shows that more work is needed to unlock the full potential of gas for Nigeria’s economy.
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NUPRC’s challenge will be to sustain this momentum, ensuring gas projects reach final investment decision, expanding processing and transportation infrastructure, and pushing toward its zero-flare target without compromising supply reliability.
Philip Ibitoye is a Special Correspondent with EKO HOT BLOG. Click here to find daily analysis and critical insight on trending issues in Lagos and other parts of Nigeria.
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