$56.75bn lost to gas flaring as Nigeria wastes energy potential

Nigeria has lost about $56.75 billion since 2002 by burning off natural gas, according to the World Bank. Gas flaring happens when oil companies burn excess gas instead of using it, often because there are no pipelines or .bbuyers.

Every day, Nigeria burns around 192 million standard cubic feet of gas. This is a huge waste because the gas could be used to generate electricity, reduce power shortages, and support industries.

A recent report shows Nigeria had the second-highest increase in gas flaring in 2025, highlighting the ongoing problem.

Experts say the flared gas could produce about 3,400 megawatts of electricity, almost equal to the country’s current power supply. This could help millions of Nigerians who still lack reliable electricity.

Technology analyst Simi Ajayi said the wasted gas could also power data centres, which are important for artificial intelligence (AI). As AI grows worldwide, demand for electricity is increasing rapidly.

The International Energy Agency predicts that global electricity use by data centres will almost double by 2030.

Nigeria already has a law, the Petroleum Industry Act (PIA), which allows companies to capture and use flared gas. About 38 companies have received permits under this programme.

Lagos is also well-positioned for data centres because it has strong internet connectivity through major submarine cables.

Other African countries like Kenya, South Africa, and Egypt are already making progress in attracting data centre investments.

Experts warn that Nigeria must act quickly to take advantage of this opportunity or risk falling behind.