APPRAISING THE PRINCIPLES OF SUSTAINABLE DEVELOPMENT AND PHASE-OUT OF GAS FLARING IN THE OIL AND GAS SECTOR IN NIGERIA UNDER THE PETROLEUM INDUSTRY ACT 2021

Abstract

The exploitation of oil and gas should be based on the principle of sustainable development as anchored on the Brundtland’s Report of the World Commission on Environment and Development (WCED) 1987, as the ‘development that meets the needs of the present without compromising the ability of future generations to meet their own needs’ The Report is made up of four concepts; the need for States to preserve their natural resources for the benefit of future generations, the exploitation of the natural resources in a prudent manner, the equitable use of these resources having regards to the strategic interests of other States and, the need to integrate economic issues in the economic plan of States. It is in response of these principles that Nigeria has formulated laws and regulations on the phase out of gas flare in the oil and gas sector. Prominent among these laws are the Constitution of the Federal Republic of Nigeria 1999 (as amended) the Petroleum Industry Act, 2021, the Gas Flaring (Prohibition and Punishment Act, 2009, the Gas Flare (Prevention of Waste and Pollution) Regulations 2018, and the recently passed Climate Change Act, 2021. Nigeria also has ratified some international treaties and agreements such as the United Nations Framework Convention on Climate Change (UNFCCC), 1992, the Kyoto Protocol, 1997 and the Paris Agreement on Climate Change, 2015 among others. Nigeria has ratified or domesticated some of these treaties on sustainable development to end gas flare in the oil and gas sector. The objective of the research therefore was to appraise the principle of sustainable development in the oil and gas sector and to assess whether the existing legal frameworks are capable of phasing out gas flare in the oil and gas sector as well as meeting the opportunities in investment in gas utilisation. The doctrinal approach was adopted and reference was made to text books, journal articles, internet sources and other materials in the analysis. It was found that despite the existence of a robust legal framework on the subject matter, Nigeria has failed to take advantage of investment opportunities in carbon trade due to lack of capacity, technology, finance and the political will to enforce these laws and regulations. It is hoped that the recently passed Petroleum Industry Act, 2021, the Gas Flare (Prevention of Waste and Pollution), Regulations 2018 and the Climate Change Act, 2021 will go a long way in minimising the continued flaring and venting of gas in Nigeria. It is recommended that Nigeria should implement a gas commercialisation utilisation plan in tandem with international reality.