Nigeria’s attempt to document oil and gas emissions marked a long-overdue step toward climate accountability, but significant gaps in compliance and transparency pose a risk to undermining the effort.
The Nigeria Extractive Industries Transparency Initiative (NEITI) released its 2022-2023 emissions disclosure report in 2024, showing some progress, yet concerns remained.
The findings and implications are expected to spark critical discussions about Nigeria’s climate accountability and the need for improved transparency in the extractive industries.
Although the value of absolute emissions of kilograms of carbon dioxide equivalent (kgCO₂-eq) must be complemented by emission intensity metrics (kgCO₂-eq per barrel), which allow fair, scale-neutral comparisons—such as between Chevron’s 400,000 bpd and Midwestern’s 9,000 bpd.
However, this emerging progress is undermined by the alarming non-compliance of over 79 percent of listed companies—including majors like AITEO, SEPLAT, and OANDO—who failed to disclose any emissions data.
Compounding this are structural transparency failures, a lack of asset-level disclosures obscures high-emission OMLs, methodological gaps raise risks of greenwashing, and the absence of credible decarbonization plans across most companies signals a weak commitment to real climate action.
State of compliance
The report by the NEITI revealed that only 15 out of 62 companies (24 percent) disclosed their emissions data, with notable oil and gas companies such as AITEO, SEPLAT, and OANDO not reporting any data. The report also identified substantial gaps in the disclosed data, including the absence of emission intensity metrics and detailed asset-level information.
This lack of transparency raised concerns about the industry’s environmental impact and the effectiveness of current reporting practices. The report’s findings suggest that many companies in the oil and gas sector are not meeting their environmental disclosure obligations, which can hinder efforts to track and mitigate the sector’s contribution to climate change.
The NEITI report’s showed the need for improved transparency and accountability in the oil and gas industry. By disclosing emissions data, companies can demonstrate their commitment to environmental responsibility and provide stakeholders with valuable information to assess their performance. The report’s recommendations can help inform policy and regulatory decisions aimed at enhancing environmental reporting and promoting sustainability in the sector.
Climate threat of methane emissions
Methane emissions are a significant climate threat, with 84 times the warming power of Carbon dioxide CO2. The report revealed that some companies have made significant progress in reducing their methane emissions, while others have seen significant increases.
This disparity underscores the need for industry-wide adoption of best practices and technologies to minimize methane emissions.
The report also notes significant variations in emission intensity among companies, with some companies having much higher emission intensities than others.
The impact of methane emissions on the climate cannot be overstated. As a potent greenhouse gas, methane plays a significant role in global warming, and reducing its emissions is crucial to mitigating climate change.
Companies that fail to address their methane emissions risk contributing to devastating climate impacts, including more frequent natural disasters, sea-level rise, and extreme weather events.
To mitigate these risks, companies must prioritize methane emission reduction and adopt best practices in emission management.
This includes implementing leak detection and repair programs, using methane-reducing technologies, and promoting transparency and accountability in emission reporting.
The Dean of the Faculty of Social Science and Humanities at Ontario Tech University, Peter Stoett, highlighted the significance of methane emissions, stating that it’s “terrifying” to consider methane’s impact on short-term warming, which is 25-80 times greater than carbon dioxide, depending on the timescale.
He stressed the need for accurate data on emissions and reducing subsidies for harmful agricultural and energy extraction projects.
Also, the Former minister of Environment, Dr. Muhammad Mahmood Abubakar, Nigeria’s environment minister, noted “the phenomenon of climate change is staring everyone in the face, and actions to handle its impacts have become far more critical than before adding that this underscores the urgency of addressing climate change and methane emissions in Nigeria.
“Methane has over 80 times the warming potency of CO2 over a 20-year span, significantly contributing to climate change and negatively impacting air quality and human health.
“Nigeria is the first country in Africa to regulate methane emissions in the energy sector, aiming to reduce emissions from its oil and gas industry and mitigate climate change.
“Limiting methane emissions by 45% by 2030 can avoid nearly 0.3 degrees of global warming and save 26 million tonnes of crop losses.”
Transparency failures
The report raised several red flags regarding data quality and credibility, including probable errors, physically impossible emissions, and production-emissions mismatches.
The report, therefore, called for targeted accountability pathways, including independent audits, disclosure of emissions data, and enforcement of Scope 3 reporting.
Civil society must now respond with urgency to demand intensity disclosures, compel asset-level data, and publicly expose non-compliant actors.
The lack of transparency in emissions reporting is a significant concern, as it undermines efforts to track progress and hold companies accountable for their environmental impact.
Abdulmumin Abubakar, NEITI’s head of oil and gas unit, noted that emissions disclosure is a new requirement under the 2023 EITI standard and a novel obligation introduced under the PIA 2021, backed by guidelines issued by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
While some companies are building internal systems and policies to comply, many show limited awareness, and others didn’t provide data to NEITI at the time of publication. This gap reflects the sector’s limited but evolving capacity to meet domestic and global climate reporting obligations.
The 2007 NEITI Act provides for sanctions, including fines and imprisonment, for non-compliance with legitimate data requests, but enforcement remains weak.
“To close this gap, NEITI uses a data request compliance ranking report that indirectly “names and shames” non-compliant companies. However, NEITI lacks direct investigative or prosecutorial powers, relying on other institutions for enforcement, which is a major barrier to curbing corruption in the extractive sector.”
Also, Dr Nkiruka Maduekwe, Director General of the Nigeria Council on Climate Change, noted that for Nigeria, acting on methane emissions is not just about climate responsibility, but also about local health and sustainable development.
“Nigeria is proud to partner with UNEP’s IMEO and the European Commission on scientific research to measure emissions across sectors and enable methane action in Nigeria,” she said.
She emphasized the importance of addressing methane emissions for both climate and development goals.
Experts said that without accurate and reliable data, stakeholders are unable to make informed decisions or assess the effectiveness of emission reduction strategies.
“The report’s findings underscore the need for robust transparency and accountability mechanisms to ensure that companies are held to high standards of environmental reporting.
“To address these transparency failures, the report recommends a multi-faceted approach that includes independent audits, public disclosure of emissions data, and enforcement of Scope 3 reporting.
“Implementing these measures, stakeholders can increase confidence in the accuracy and reliability of emissions data, enabling more effective decision-making and accountability. Civil society organizations, regulators, and companies must work together to prioritize transparency and accountability in emissions reporting,” the expert said.
The consequences of inaction are significant, as continued lack of transparency can undermine trust in the industry and hinder efforts to address climate change.
Demanding intensity disclosures, compelling asset-level data, and publicly exposing non-compliant actors, civil society can play a critical role in promoting transparency and accountability.
Ultimately, transparency and accountability are essential for driving progress and ensuring that companies are held to high standards of environmental responsibility.
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