Paltry fines for gas flaring encourages further practice

Oil and gas companies operating in Nigeria were fined a paltry N1.81 billion in nine months between January and September 2015, for failure to comply with the Federal Government’s directives on gas flaring according to data released by the Central Bank of Nigeria (CBN).

A breakdown of the figures from the apex bank’s Third Quarter Statistical Bulletin indicated that in the first quarter of 2015, oil firms paid N670 million as penalties for gas flaring while N70 million and N350 million were paid as penalties in the second and third quarters respectively.

Penalties for gas flares were increased in 20ll by the then petroleum ministry to N10 to $3.50 per 1000 standard cubic feet (scf). Analysts maintain that the penalty for gas flaring is too low and does not offer any real incentive for defaulting companies to desist from the practice.

ISAAC ANYAOGU