From Waste to Wealth: How Nigeria’s Flare Gas is Powering a Greener, Richer Future

By Adonis Byemelwa

In the shadow of Nigeria’s vast oil legacy lies a quieter revolution—one powered not by black gold, but by the gas that once went up in flames. For decades, flare stacks have lit up oilfields across the Niger Delta, burning off what many saw as waste. But today, those flames are being reimagined—not as pollution, but as potential.

Nigeria, holding the largest proven gas reserves in Africa—about 209 trillion cubic feet (TCF)—has long been a paradox. With energy potential that could light up the continent, it’s also one of the world’s top gas-flaring countries. In 2024 alone, the country flared around 5.5 billion cubic meters (BCM) of gas—4% of global flaring. That’s not just a statistic—it’s an opportunity lost, an environment harmed, and an economy shortchanged. But the tides are turning.

From Waste to Wealth: Nigeria’s Wake-Up Call

The market value of the flared gas in 2024 is staggering—$1 billion, or over ₦1.5 trillion, effectively burnt into the sky. But it’s not just about money. That same wasted energy could’ve powered 30 billion kWh of electricity—the equivalent of 12 billion liters of diesel, potentially saving Nigerians ₦16.8 trillion in energy costs.

And then there’s the environmental cost. With over 15 million tons of CO₂ emitted from this practice, the impact on communities, agriculture, and air quality—especially in oil-rich regions like the Niger Delta—is tangible. Children grow up under skies tinged with smoke. Farmers watch their soil degrade. Flaring isn’t just a policy issue—it’s a lived experience.

The Industry Steps In: NEUMAN & ESSER and SPG Steiner Lead the Charge

NEUMAN & ESSER, a leading reciprocating compressor manufacturer with almost 200 years of experiences, and SPG Steiner, a leading German engineering firm, with decades of technical mastery are coming with solutions. These companies aren’t just bringing solutions—they’re laying the groundwork for a new gas economy.

NEUMAN & ESSER is developing its market presence with their local partner MILAT Nigeria. The aim is to bring the compression technology as well as hydrogen generation experiences closer to end users. When developing complex solution for flare gas utilization, they work together with SPG Steiner, a world-class expert in modular gas processing, clean combustion systems, and cryogenic storage. Its subsidiary, Prematechnik, has been pioneering advanced combustion systems since 1957, ensuring not only efficiency but environmental compliance.

What truly sets this partnership lead by NEUMAN & ESSER apart is the complex solution of complete flare gas utilization. They are coming with the tailored solution. Based on the project specifics, they can design technology to any kind of end product – being that CNG, LPG, LNG or gas-to-power application. It can also be adapted to utilize stranded gas locally for  the same purposes as for the flare gas.

This is particularly relevant for Nigeria, where oilfields are scattered, infrastructure is patchy, and the need for mobile, scalable solutions is critical.

Policy & Progress: NGFCP and the Road to 2030

Regulatory momentum is finally catching up. In 2022, Nigeria’s upstream regulator, NUPRC, launched the Nigerian Gas Flare Commercialisation Programme (NGFCP). By 2023, 49 flare sites were awarded to 42 companies tasked with capturing and utilizing flare gas using proven, commercial technologies.

This program feeds directly into the World Bank’s Zero Routine Flaring by 2030 initiative, aligning Nigeria with a global mission to curb methane emissions and boost energy equity.

NEUMAN & ESSER and SPG Steiner, through their energy-efficient modular systems, are supporting this transformation with total power consumption as low as 2836 kW while integrating gas treatment, liquefaction (LNG, LPG, C5+), compression, storage, and even powerplant integration. The vision is bold: turn flare sites into microenergy hubs, supplying gas, electricity, and even exportable fuels.

Real Impact on the Ground: Beyond the Technology

It's one thing to talk about technology and another to see its impact in the field. In Port Harcourt and Lagos, MILAT Nigeria Ltd isn’t just selling equipment—they’re training local engineers, expanding workshops, and scaling field services. The team has already contributed to refinery rehabilitation projects involving multi-stage pumps, reciprocating compressors, and centrifugal systems—modernizing aging infrastructure and ensuring Nigeria’s energy backbone can support its gas ambitions.

These aren’t abstract achievements. They translate to jobs for local technicians, power for underserved areas, and a cleaner future for communities long burdened by pollution.

The flare gas that once symbolized waste now holds the promise of energy independence, economic diversification, and environmental healing.

Toward a Sustainable Energy Future

Nigeria stands at a critical crossroads. With a young, growing population, urgent energy needs, and global scrutiny on emissions, the path forward must be both sustainable and strategic. The combination of smart policy, innovative technology, and local capacity building could make Nigeria not just a participant, but a leader in the global energy transition.

As global attention increasingly turns to methane reduction and cleaner fuels, Nigeria's flare gas—if harnessed correctly—could become its most valuable untapped asset. With companies like NEUMAN & ESSER and SPG Steiner driving innovation on the ground, and with local partners like MILAT bridging the gap between engineering and community needs, the pieces are finally falling into place. The future of gas in Nigeria isn't up in smoke anymore—it’s being redefined, refined, and redistributed. One flare site at a time.

Jens Wulff, Managing Director of NEUMAN & ESSER Deutschland says:

Our vision is very clear, we want to have a positive impact with our solutions at many different levels.

The mission is first of all, reduce toxic and greenhouse gas emissions to improve the environment. Secondly, by making energy and value carriers available, to set the preconditions for in-country value generation. Thirdly, to train people on the maintenance of the equipment. Finally, in the long run, more and more components of the solution can be sourced locally, and the proven technology can even be exported to other regions with a strong Nigerian Value Chain share.

We do transfer our mission into the reality and actions across Africa. The commitment of us is very clear and I hope the market, customers and business partners can feel this focus of us.