Economy
Nigeria’s Gas Production Rises 2.97% to 687bn scf in Q1 2026
By Adedapo Adesanya
Data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed that gas production increased from 667.27 billion standard cubic feet in Q1 2025 to 687.09 billion standard cubic feet in the same period of 2026, representing a year-on-year growth of about 2.97 per cent.
A breakdown of the figures indicated mixed production trends across the three-month period. January 2026 production slipped slightly to 233.96 billion scf from 236.32 billion scf recorded a year earlier.
However, output strengthened in February and March, with production rising to 212.62 billion scf and 240.51 billion scf, respectively, making March the strongest production month within the review period.
However, gas flaring declined by more than 8 per cent, underscoring gradual progress in the country’s drive to monetise gas resources and curb environmental waste.
The report also showed notable improvement in Nigeria’s gas flare management, a long-standing challenge in the oil and gas sector. Total gas flared dropped from 50.95 billion scf in Q1 2025 to 46.83 billion scf in Q1 2026, reflecting an 8.1 per cent reduction.
Average flare intensity equally improved, declining from 7.65 per cent in Q1 2025 to 6.81 per cent in Q1 2026, suggesting operators captured more gas for commercial use rather than burning it off.
Monthly flare rates also trended downward throughout the quarter, reinforcing signs of tighter compliance and improved operational efficiency.
A major shift emerged in the structure of Nigeria’s gas production during the period. Associated gas production, generated alongside crude oil extraction, weakened sharply, falling from 370.28 billion scf in Q1 2025 to 332.82 billion scf in Q1 2026. In contrast, non-associated gas production surged to 354.17 billion scf from 296.99 billion scf, highlighting stronger output from standalone gas projects and dedicated gas developments.
Nigeria’s export gas market posted one of the strongest performances in the quarter. Export gas sales climbed by over 30 per cent to 292.87 billion scf from 223.99 billion scf in Q1 2025, driven largely by improved liquefied natural gas exports and stronger global demand for Nigerian supplies.
However, domestic gas sales painted a different picture. Supplies to the local market declined by 8.5 per cent to 171.15 billion scf from 186.98 billion scf recorded in the corresponding period of 2025, raising fresh concerns about gas availability for power generation, manufacturing and industrial activities within Nigeria.
Despite the drop in domestic sales, total utilised gas remained largely stable at 639.68 billion scf, compared to 639.91 billion scf in Q1 2025, reflecting improved efficiency in gas capture and commercialisation.
With proven gas reserves estimated at over 215 trillion cubic feet, Nigeria continues to position natural gas as a critical transition fuel for electricity generation, industrial expansion, petrochemicals and export earnings.
The federal government has also intensified enforcement measures and commercial recovery initiatives under programmes such as the Nigerian Gas Flare Commercialisation Programme to reduce routine gas flaring and unlock greater value from the nation’s vast gas resources.
By Modupe Gbadeyanka
The transition guidelines on the Tax Acts 2025 to provide direction to taxpayers, tax practitioners, revenue authorities and other stakeholders on how to address various issues arising from the old regime to the new framework have been released by the federal government.
The framework was issued on Thursday via a statement signed by the Director of Press Relations in the Federal Ministry of Finance, Efe Ovuakporie.
The guidelines set out the process for transition from the repealed tax laws to the new tax framework effective January 1, 2026.
Under the guidelines, the Tax Acts 2025, comprising the Nigeria Revenue Service (Establishment) Act, the Nigeria Tax Act, the Nigeria Tax Administration Act, and the Joint Revenue Board (Establishment) Act, apply from the respective commencement dates as enacted in each law. In particular, January 1, 2026, for the Nigeria Tax Act, 2025.
Tax liabilities, assessments, audits, investigations, disputes and enforcement actions relating to periods before that date will be treated under the repealed tax laws, the notice stated.
Tax returns relating to accounting periods ending before January 1, 2026, will be filed under the previous tax laws, while returns relating to accounting periods ending from January 1, 2026, onward will be administered under the new tax framework.
The document also covers the treatment of income taxes, transaction taxes, development levies, tax incentives, exemptions, record-keeping obligations and transactions that span both the old and new tax regimes.
Existing tax incentives and exemptions granted under the repealed laws will remain in place until their expiration dates. New applications and pending requests, however, will be considered under the provisions of the Tax Acts 2025.
The Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, described the Tax Acts 2025 as a significant milestone in Nigeria’s tax reform programme, noting that the Guidelines set out how existing obligations, ongoing matters and future transactions will be treated under the new regime.
According to the Minister, the guidelines are anchored on three key principles – clarity, fairness and administrative certainty, adding that they are intended to promote uniform implementation and support effective administration across the Nigeria Revenue Service, State Internal Revenue Services, the FCT Internal Revenue Service, Local Government Revenue Committees, tax practitioners and taxpayers nationwide.
By Adedapo Adesanya
The Federation Account Allocation Committee (FAAC) has shared a total of N2.300 trillion among the federal government, state governments, and Local Government Councils from the revenue generated in May 2026.
The amount is slightly higher than the N2.257 trillion distributed last month, according to a statement issued by the Head of Information at the Federal Ministry of Finance, Mrs Efe Ovuakporie.
The FAAC allocation was confirmed at its June 2026 meeting following consideration of revenue receipts for the month of May.
The total distributable revenue of N2.300 trillion comprised N1.611 trillion from statutory revenue and N688.785 billion from Value Added Tax (VAT).
From the distributable amount, the federal government received N818.680 billion, while state governments got N759.141 billion. Local Government Councils were given N534.277 billion, and oil-producing states received N188.132 billion as 13 per cent derivation revenue.
The gross statutory revenue for the month stood at N2.652 trillion, representing an increase of N273.623 billion compared to the N2.378 trillion recorded in April 2026.
FAAC reported significant increases in collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties, Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), and oil royalties during the period under review.
However, collections from Import Duty, Value Added Tax (VAT), Excise Duty, and Common External Tariff (CET) levies recorded declines compared to the previous month.
Gross VAT revenue for May 2026 stood at N743.668 billion, lower than the N806.617 billion collected in April 2026.
The committee noted that despite the decline in VAT collections, overall revenue performance for the month was strengthened by improved receipts from petroleum-related taxes and Companies Income Tax.
By Aduragbemi Omiyale
Trading in the equities of Fortis Global Insurance Plc on the floor of the Nigerian Exchange (NGX) Limited has been suspended.
The action was taken on Wednesday, June 17, 2026, by the regulatory subsidiary of the NGX Group Plc, NGX Regulation (NGX RegCo) Limited.
It was to prevent investors from buying and selling the company’s securities on the stock market ahead of its share reconstruction.
According to a circular signed by the Head of Issuer Regulation Department of NGX RegCo, Mr Godstime Iwenekhai, the suspension is also to determine the shareholders who are entitled to receive the reconstructed shares.
“Trading license holders and the investing public are hereby notified that trading in the shares of Fortis Global Insurance Plc was suspended on Wednesday, June 17, 2026.
“The suspension is necessary to prevent trading in the shares of Fortis Global Insurance Plc to enable the Company’s Registrars and the Central Securities Clearing System Plc (CSCS) to reconcile their books for the listing of the reconstructed shares on Nigerian Exchange Limited (NGX).
“The suspension is also required for the purpose of determining the shareholders who are entitled to receive the reconstructed shares,” the notice stated.
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