Nigeria is stepping up efforts to attract investment into its natural-gas sector while putting greater pressure on companies that have received permits for gas-flaring projects but have failed to make adequate progress.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned investors that licences awarded under the country’s gas-flare commercialisation programme could be revoked if projects remain stalled. The regulator reviews projects one year after approval and can take action where progress is considered insufficient.

The initiative is designed to capture natural gas that would otherwise be burned at oil-production facilities. Nigeria wants to turn this wasted gas into an economic resource while reducing emissions and improving the efficiency of its energy industry.

According to the NUPRC, 27 of 43 identified gas-flaring sites have already been awarded to investors. Authorities want these projects to translate into actual investment, employment and additional gas supplies rather than remain inactive after receiving regulatory approval.

Nigeria has more than 215 trillion cubic feet of proven natural-gas reserves, making the sector an important part of the country’s plans for electricity generation, industrial development and energy security.

The government is also working on wider reforms in the oil and gas sector. Recent official announcements have highlighted efforts to unlock investment potential, strengthen public-sector performance and expand economic opportunities.

The latest regulatory warning indicates that Nigeria wants investors to move quickly from licensing to actual project development. Stronger enforcement could help the country reduce gas flaring while generating additional economic value from its large natural-gas reserves.