By Juliet Ezeh
Nigeria’s natural gas sector recorded stronger output in 2025, with total production rising to 2.71 trillion standard cubic feet, reinforcing the country’s position as a major gas supplier. Yet beneath the growth figures lies a familiar challenge: a significant volume of gas continues to be flared, highlighting the gap between production gains and full commercial optimisation.
Data released by the Nigerian Upstream Petroleum Regulatory Commission show that production in 2025 surpassed the 2.5 trillion scf recorded in 2024. Of the total output, approximately 942.7 billion scf was exported, accounting for nearly 35 per cent of production and underscoring the dominance of the international market in Nigeria’s gas economy.
Domestic sales during the year stood at 780.6 billion scf, while 776.6 billion scf was consumed in field operations. Overall, about 2.5 trillion scf was utilised, translating to a utilisation rate of 92.4 per cent. While this reflects improved efficiency, the figures also reveal that not all produced gas is monetised.
Associated gas contributed 1.456 trillion scf to total output, while non-associated gas accounted for 1.25 trillion scf, indicating a near-even split between both sources.
Production performance fluctuated across the year. Output peaked in July at 250.9 billion scf, with May and June also recording strong volumes above 239 billion scf. However, September saw a marked slowdown, dropping to 198.3 billion scf, the lowest monthly output for the year. Production rebounded in October before moderating slightly toward year-end, with figures for the final quarter still subject to reconciliation by the regulator.
Export volumes mirrored production patterns, with December posting the highest monthly export figure at 101.9 billion scf. November and July followed closely behind. In contrast, September recorded the weakest export performance at 45.4 billion scf, reflecting the broader dip in output during that period.
Domestic sales were strongest in May and remained elevated through mid-year before tapering off in November and December.
Despite the high utilisation rate, gas flaring remains a notable concern. Approximately 204 billion scf was flared in 2025, representing 7.54 per cent of total production. September recorded the highest flare rate at over nine per cent, while July posted the largest absolute volume of flared gas. December and November saw comparatively lower flare volumes.
The persistence of flaring signals that while Nigeria has made progress in gas commercialisation, structural and infrastructure gaps continue to limit full value capture.
Efforts to address this challenge gained momentum in October when the NNPC/Heirs Energies OML 17 Joint Venture signed Gas Flare Commercialisation Agreements under the Nigerian Gas Flare Commercialisation Programme. The initiative is designed to convert previously flared gas into productive use for power generation, industrial supply, cooking gas and compressed natural gas, aligning with Nigeria’s broader energy transition goals.
The agreements marked a shift from regulatory approvals to implementation, bringing together flare gas offtakers and operators to monetise volumes that would otherwise be wasted.
The 2025 data present a dual narrative. On one hand, Nigeria’s gas production growth and strong export performance demonstrate the sector’s expanding commercial footprint. On the other hand, the continued flaring of over 200 billion scf highlights the urgency of accelerating infrastructure development, domestic utilisation and commercial frameworks.
As global demand for cleaner transition fuels rises, Nigeria’s ability to balance export earnings with domestic energy security and environmental responsibility will define the next phase of its gas strategy.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.