Nigeria’s gas industry recorded a significant improvement in July 2025, as new data showed an increase in production and higher supply to the power sector. Figures released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirmed that average daily gas output reached 7.59 billion standard cubic feet per day (BSCFD), marking steady growth compared to the previous months.
Deliveries to power plants improved by 3.48% month-on-month, climbing from 833.86 million standard cubic feet per day (MMSCF/D) in June to 862.86 MMSCF/D in July. This level of supply was the strongest recorded in three months. Earlier in the year, supply had stood at 780.23 MMSCF/D in January, 849.37 MMSCF/D in February, and peaked at 886.83 MMSCF/D in March before fluctuating slightly in April and May.
In its weekend statement, the regulator highlighted that Nigeria also reduced gas flaring to 7.16% in July, down from 7.55% in 2024 and 7.38% in July 2023. The decline was linked to initiatives such as the Nigerian Gas Flare Commercialisation Programme (NGFCP), the Decarbonisation and Sustainability Blueprint, and the adoption of the Upstream Petroleum Decarbonisation Template (UPDT).
The data further revealed that gas production in July was 8.58% higher than the 6.99 BSCFD recorded in 2024 and 9.84% above the 6.91 BSCFD produced in 2023. According to the breakdown of gas utilisation, 35.88% of production in 2025 has been exported so far, 27.82% went to the domestic market, and 29.13% was allocated to field and plant operations including fuel, reinjection, and lifting.
On production contract types, Marginal Sole Risk operators contributed the largest share at 63%, followed by Production Sharing Contracts (24%), Joint Ventures (10%), and Sole Risk operators (3%). For the Domestic Gas Delivery Obligation (DGDO), July performance stood at 72.5%, which was an improvement from 71.8% in June. Monthly DGDO results this year have generally remained above 70%.
The NUPRC emphasized that the consistent growth in production and the reduction of routine flaring reflect Nigeria’s ongoing commitment to achieving cleaner energy targets and ensuring a more reliable gas-to-power supply. It added that the goal of eliminating routine gas flaring by 2030 remains on track, with new policies and partnerships reinforcing the country’s decarbonisation roadmap.
The report signals optimism for both the domestic energy market and investors in Nigeria’s gas industry, as stronger output and improved compliance are expected to support electricity generation and economic stability.
Summary: Nigeria increased daily gas production to 7.59 BSCFD in July 2025, boosted supply to power plants, and achieved one of its lowest gas flaring rates at 7.16%. The regulator linked these improvements to ongoing decarbonisation measures, stronger policy enforcement, and improved contract performances across operators. With supply and flaring data showing progress, Nigeria’s energy sector is positioning itself for cleaner, more sustainable growth.
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