Environmental Coalition Calls for Urgent Review of Gas Flaring Penalty System
A coalition of environmental organizations has issued a pressing appeal to President Bola Ahmed Tinubu and the National Assembly, urging immediate action to address what they describe as the misuse of funds generated from gas flaring penalties. The groups made their case during a World Press Conference held in Abuja on Friday, February 27, 2026, calling for a comprehensive review of Executive Order 9.
Penalties Should Deter Pollution, Not Generate Revenue
Speaking on behalf of the coalition, Comrade Itsede Victor strongly criticized the current practice of remitting gas flaring penalties into the Federation Account. He argued that this approach unfairly treats environmental violations as a source of government income rather than using the funds to address the devastating impacts on affected communities.
The central question before the nation is this: Should gas flaring penalties serve as a deterrent against environmental destruction, or should they continue to function as a source of government revenue? Victor asked during the conference.
He emphasized that residents of the Niger Delta have endured decades of exposure to toxic emissions from oil and gas activities, with minimal relief or compensation for their suffering.
Health and Environmental Risks Documented
The coalition presented scientific evidence highlighting the severe consequences of gas flaring, including:
- Release of harmful substances such as methane, carbon dioxide, nitrogen oxides, and particulate matter
- Increased rates of respiratory illnesses, cancers, and skin diseases
- Reproductive health challenges among affected populations
- Environmental damage including acid rain, soil degradation, and water pollution
- Biodiversity loss and declining agricultural output
Despite Nigeria's public commitments to reduce gas flaring, the organizations noted that the country remains among the world's leading gas-flaring nations, attributing this persistence to weak enforcement mechanisms and ineffective penalties.
Legal Framework and Supreme Court Ruling Cited
The coalition referenced several legal instruments supporting their position, including Executive Order 9, which currently directs gas flaring penalties paid by oil and gas companies into the Federation Account through the Nigerian National Petroleum Company Limited.
They also cited a 2019 Supreme Court ruling affirming that the right to a clean and healthy environment is inseparable from the right to life, establishing that citizens and civil society groups have legal standing to hold polluters accountable.
Additionally, the organizations pointed to provisions within the Petroleum Industry Act (PIA) 2021, particularly:
- Section 104, which restricts gas flaring except under legally approved conditions
- Section 52(14), which directs that gas flare penalties be applied to gas infrastructure development and community projects
Concerns Over Enforcement and Fund Management
The coalition expressed serious concerns about enforcement failures and fund mismanagement, referencing reports from the Nigeria Extractive Industries Transparency Initiative (NEITI) and National Assembly oversight committees that have documented:
- Persistent arbitrary flaring by oil companies
- High default rates in penalty payments
- Delayed remittances of collected penalties
- Weak enforcement of existing regulations
They further alleged that significant portions of gas flare penalty funds have remained with the Central Bank of Nigeria for extended periods, warning that distributing such funds nationally rather than deploying them in affected areas unfairly shifts the burden of pollution onto victim communities.
Specific Demands for Immediate Action
The environmental groups presented two specific demands for President Tinubu:
- Remove gas flaring penalties from the Federation Account entirely
- Ensure all existing and future penalty funds are strictly channeled toward environmental clean-up, health interventions, poverty reduction, and sustainable development in the Niger Delta region
Gas flaring penalties must serve their true purpose as deterrents. Penalising pollution must never become a business model, the coalition declared in their statement.
They emphasized that lasting peace in the Niger Delta region remains uncertain without visible environmental justice, calling on the administration's Renewed Hope Agenda to prioritize the wellbeing of oil-producing communities who have borne the brunt of environmental degradation for generations.
