Nigeria has warned companies that they could lose permits to develop and commercialize gas-flaring sites if they fail to make sufficient progress on their projects, as Africa’s largest oil producer steps up efforts to end routine gas flaring by 2030.

The warning was issued by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which is overseeing the Nigerian Gas Flare Commercialisation Programme. The initiative aims to channel gas that would otherwise be burned at oil production sites into commercial uses, including power generation and industrial activities.

NUPRC Director General Oritsemeyiwa Eyesan said companies awarded flare sites would be assessed after one year to determine whether they had made meaningful progress in developing the projects. Those that fail to demonstrate sufficient activity could have their awards revoked.

The regulator has identified dozens of flare sites under the commercialisation programme and has awarded a number of them to investors seeking to capture, process and market the gas.

Gas flaring has long been a major environmental and economic issue for Nigeria. Burning associated gas releases greenhouse gases and other pollutants while wasting a resource that could be used to generate electricity, supply industries and support domestic energy needs.

The government’s 2030 target reflects efforts to reduce routine flaring while increasing the use of Nigeria’s substantial natural gas resources.

The latest warning signals a tougher approach toward companies that have secured opportunities under the programme but have yet to translate those awards into operational projects. For the Nigerian government, accelerating gas commercialisation is also part of a broader effort to strengthen energy supply and generate greater economic value from the country’s oil and gas resources.