Abstract
Gas flaring remains a major environmental and economic challenges in Nigeria’s oil and gas industry, resulting in significant resource wastage and ecological degradation. Although Nigeria is one of the world’s leading oil producers, large volumes of natural gas continue to be flared rather than harnessed for economic development. This study investigates the economic impacts of gas flaring on Nigeria’s economic sustainability, focusing on its effects on GDP growth, industrial development, and energy security. It also evaluates the effectiveness of existing policies and the role of infrastructure and regulatory quality in mitigating flaring. A mixed-methods research design was adopted. Quantitative data were sourced from secondary sources, including reports from the Nigerian National Petroleum Corporation (NNPC) and the Department of Petroleum Resources (DPR), as well as financial publications from key industry stakeholders. Regression analysis was used to assess the relationship between gas flaring and economic performance indicators. Qualitative data were collected through surveys, interviews, and focus group discussions involving oil company officials, government regulators, and community leaders in the Niger Delta. The findings reveal that gas flaring has a significant negative effect on economic sustainability, with a 10% increase in flaring linked to a 0.5% decline in GDP growth. Weak regulatory enforcement, inadequate infrastructure, and limited investment in gas processing facilities were identified as key factors driving persistent flaring, despite policies such as the Gas Flaring (Prevention of Waste) Act (1979) and the National Gas Policy (2017). The study highlights the economic, environmental, and social costs of flaring and recommends more vigorous policy enforcement, increased infrastructure investment, and public-private partnerships to promote gas utilisation and enhance Nigeria’s economic sustainability.