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 Aduragbemi Omiyale
About N3.007 trillion of the N4.359 trillion revenue generated by Nigeria in July 2026 was disbursed in August 2026 to the three tiers of government by the Federation Account Allocation Committee (FAAC) at its meeting held in Owerri, Imo State, on the sidelines of the National Council of the Federation and Economic Development.
A statement issued on Tuesday by the Director of Press and Public Relations in the Office of the Accountant-General of the Federation, Mr Bawa Mokwa, disclosed that the gross statutory revenue jumped 17.8 per cent from N3.700 trillion in June due to improved collections from petroleum and non-oil revenue sources.
The statement noted that Petroleum Profit Tax, Hydrocarbon Tax, Companies Income Tax, Capital Gains Tax, Stamp Duty, petroleum royalties, mineral royalties, excise duty and gas-flaring penalties rose, while earnings from Value Added Tax (VAT), import duty, Common External Tariff levies, gas-flaring fee rentals and miscellaneous oil revenue declined.
“In its regular monthly business, FAAC approved the disbursement of a total of N3.007 trillion to the Federal Government, the 36 State Governments and the 774 Local Government Councils as revenue for July 2026,” a part of the statement disclosed.
By Adedapo Adesanya
Oil prices rose marginally as Iran said it would adopt a more offensive stance and the Strait of Hormuz would remain closed, while the United States ruled out extending a ceasefire.
Brent crude futures finished higher by 15 cents or 0.17 per cent at $91.02 a barrel, while the US West Texas Intermediate (WTI) crude futures chalked up 44 cents or 0.52 per cent to trade at $84.94 a barrel.
A top Iranian negotiator, Mr Mohammad Baqer Qalibaf, said that Iran will keep the strait closed until the United States meets the conditions of the interim deal signed in June.
Mr Qalibaf’s comments came after a senior Iranian official earlier said that Iran will shift to a “fully offensive” military posture as efforts have stalled toward a permanent end to the war.
Meanwhile, US President Donald Trump, who previously labelled that deal “over,” said on Tuesday that talks between the US and Iran were neither taking place nor scheduled, but the strait was open.
Iran has separately been negotiating with Oman on an agreement on managing the strait and says they are close to a deal. However, the American President threatened to bomb Oman, a longstanding US security partner.
Yemen’s Houthis launched missiles in an attack on vessels they described as a Saudi military ship and four escorts in the Red Sea while the United Kingdom Maritime Trade Operations (UKMTO) separately said it received a report on Tuesday that a vessel was struck by an unknown projectile while transiting out of the strait, causing engine room damage and a crew casualty.
Amid these developments, Saudi Aramco has resumed oil loadings from inside the strait, and is offering cargoes for loading via ship-to-ship transfers off Fujairah in the United Arab Emirates (UAE) while two Chinese shipping giants also have started collecting oil cargoes outside the Gulf.
Russia is reportedly rerouting Kazakhstan’s crude oil exports from the Baltic port of Ust-Luga to the Black Sea port of Novorossiysk, freeing up capacity for more Russian oil exports from the Baltic amid heightened Black Sea security risks. The move would allow Russia to replace Kazakh barrels at Ust-Luga with its own crude exports, while Ukrainian drone attacks make it more difficult for Russian exporters to secure tankers for Black Sea loadings.
By Adedapo Adesanya
The Federal Competition and Consumer Protection Commission (FCCPC) is set to investigate leading cement manufacturers over allegations of price manipulation in the Nigerian cement market.
The anti-trust agency has formally issued a Notice of Commencement of Investigation and Summons to Produce to major manufacturers in Nigeria’s cement industry following preliminary findings from a three-month cross-border study conducted by its Anticompetitive Practices Department. Some of Nigeria’s manufacturers include Dangote Cement, BUA Cement and HBM Nigeria, previously known as Lafarge Africa.
The investigation, according to a statement signed by the Director of Corporate Communications at FCCPC, Mr Ondaje Ijagwu, was initiated in response to persistent public complaints over the rapidly rising cost of cement.
The commission’s preliminary 40-page field report revealed a sharp increase in retail prices during the first half of 2026, where a 50kg bag selling for between N9300 and N9700 in January escalated to between N13,000 and N15,000 in several regions by July.
The FCCPC noted that Nigeria maintains an installed production capacity exceeding 60 to 65 million metric tonnes annually against an estimated domestic demand of roughly 25 to 30 million metric tonnes, creating a situation of significant excess installed capacity where downward price pressure would ordinarily be expected.
It also stated that cross-border comparative metrics across Sub-Saharan and North African markets revealed that retail prices in Nigeria remain significantly higher than in countries such as Kenya, Tanzania and Togo despite Togo lacking natural limestone deposits.
“Of particular concern to the commission is that this level of production capacity has not resulted in the downward pressure on domestic prices that might ordinarily be expected in a competitive market with substantial excess capacity,” the agency said.
While cement manufacturers have pointed to macroeconomic headwinds, including persistent Naira depreciation, rising energy expenses, transport logistics, and the inflated cost of imported industrial machinery spare parts, the FCCPC is actively auditing these claims against verified operational data.
Through the formal summons, the commission is legally requiring the affected entities to present comprehensive documentation detailing their pricing methods, factory capacity utilisation rates, export volumes, and distribution network agreements.
