By Shakirat Akintola

Nigeria’s strategic pivot toward natural gas is yielding substantial financial dividends, with export revenues climbing to $2.53 billion in the first quarter of 2026.

According to the latest Balance of Payments Highlights released by the Central Bank of Nigeria (CBN), gas export receipts grew by 12.95% quarter-on-quarter, up from the $2.24 billion recorded in the final quarter of 2025.

The surge in gas revenue underpins a much stronger external trade position for Africa’s largest economy. It coincides with an aggressive national strategy to expand gas production, optimize infrastructure, and diversify foreign exchange earnings away from a historical, hyper-dependence on crude oil.

Driving the External Surplus

The apex bank’s data highlights a remarkable turnaround in Nigeria’s trade balance. Supported by the steady climb in gas revenues, alongside robust crude oil exports ($8.11 billion) and refined petroleum exports ($2.37 billion), Nigeria’s overall current account surplus skyrocketed by 255.7% quarter-on-quarter to hit $4.98 billion in Q1 2026.

The financial boost from the energy sector was further amplified by a dramatic 87.5% drop in refined petroleum imports, which plummeted to $310 million from $2.48 billion in Q4 2025—a decline analysts attribute to growing domestic refining capacity. Consequently, the nation’s core merchandise trade engine—the goods account—recorded a massive surplus of $5.95 billion for the quarter.

The Shift to a Gas-First Economy

Industry experts note that the upward trajectory of gas earnings reflects steady infrastructure utilization. Data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) indicates that aggregate daily natural gas production hovered near 7.93 billion standard cubic feet per day (bcf/d) by mid-quarter, with commercial export volumes holding strong at roughly 40% of total output.

For a country historically vulnerable to the volatile swings of global oil prices, the consistent growth in gas monetization offers a structural buffer. The federal government’s “Decade of Gas” initiative has continued to prioritize processing facility expansion and regional pipeline connectivity, keeping international shipments fluid to major buyers across Europe and Asia.

With Nigeria’s gross external reserves climbing to $48.35 billion at the end of March 2026—up from $45.75 billion in December 2025—the Q1 numbers suggest that the country’s broader macroeconomic stabilization policies are finding solid footing, anchored firmly by a diversifying energy portfolio.

The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Nigerian National Petroleum Company Limited (NNPCL) “over its failure to account for approximately ₦5.9 billion reportedly spent on the incorporation, transition, and rebranding of NNPC into NNPCL.”

The NNPC reportedly paid N2.9 billion for incorporation expenses from petroleum product proceeds, while the National Petroleum Investment Management Services (NAPIMS) also charged N2.9 billion to crude oil revenue for the same purpose, bringing the total amount spent on the rebranding of NNPC to NNPCL to ₦5.9 billion.

In the suit number FHC/ABJ/CS/1248/2026, filed last week at the Federal High Court in Abuja, SERAP is seeking “an order of mandamus to direct and compel the NNPCL to account for about ₦5.9 billion allegedly spent on the rebranding of the NNPC to the NNPCL.”

SERAP is asking the court to “direct and compel the NNPCL to provide a comprehensive reconciliation statement detailing the specific financial transactions relating to the ₦5.9 billion expenditure, including the identities of the contractors involved, and how the funds were utilized for the rebranding of NNPC to NNPCL.”

SERAP is also asking the court to “direct and compel the NNPCL to disclose the names and official positions of the government officials who authorized and approved the release and expenditure of the ₦5.9 billion reportedly spent on the rebranding of NNPC to NNPCL, and to clarify whether the expenditure complied with applicable procurement laws and due-process requirements.”

In the suit, SERAP is arguing that: “There is a legitimate public interest in the disclosure of the details sought. The NNPCL has a legal responsibility to explain whether the ₦5.9 billion expenditure represents value for money, constitutes lawful spending of public funds, and complies with applicable due process requirements.”

SERAP is also arguing that, “There ought to be full transparency and accountability regarding the reported ₦5.9 billion spent on rebranding NNPC to NNPCL. Nigerians have the right to know who approved the expenditure, who received the funds, the nature of the services rendered, and whether due process and procurement requirements were strictly followed.”

According to SERAP, “the disclosure of the identities of the officials involved and the processes followed in approving the expenditure would enable the public to assess whether the expenditure was properly authorized, represented value for money, and was undertaken in accordance with due process and procurement requirements.”

“Given the size of the reported expenditure and the importance of transparency in the management of public resources within the petroleum sector, there is an urgent need for a prompt, thorough, and transparent disclosure of the details surrounding the spending of the funds.”

The suit filed on behalf of SERAP by its lawyers, Oluwakemi Agunbiade, Kehinde Oyewumi, and Andrew Nwankwo, read in part: “The alleged spending of the ₦5.9 billion suggests a grave violation of the public trust and the provisions of the Nigerian Constitution 1999 [as amended], national anticorruption laws, and the country’s international anticorruption obligations.”

“The failure to account for the spending of the ₦5.9 billion on rebranding from NNPC to NNPCL reflects a failure of NNPCL accountability more generally and is directly linked to the institution’s continuing failure to uphold transparency and accountability principles.”

“The refusal or failure of the NNPCL to provide a detailed account of the expenditure undermines the right of access to information concerning the management of public resources.”

“Senate Committee on Public Accounts reportedly raised serious concerns regarding the expenditure of the ₦5.9 billion described as incorporation and transition expenses allegedly incurred during the process of transforming the NNPC into the NNPCL.”

“The Committee described the spending of the ₦5.9 billion as excessive, unjustifiable, and deserving of further explanation, investigation, and legislative scrutiny in the public interest.”

“The transformation of the national oil company from the NNPC into the NNPCL occurred following the enactment of the Petroleum Industry Act (PIA) 2021, which required the corporation to become a commercially oriented limited liability company fully owned by the federal government.”

“Section 13 of the Nigerian Constitution 1999 [as amended] requires all public institutions including the NNPCL to conform to and apply the provisions of Chapter II of the Constitution, while Section 15(5) mandates the public institutions to abolish all corrupt practices and abuse of power.”

“Similarly, Section 16 of the Constitution requires the public institutions to ensure that the material resources of the nation are harnessed and distributed as best as possible to serve the common good.”

“Articles 5 and 9 of the UN Convention against Corruption require Nigeria to ensure transparency and proper management of public funds.”

“Article 21 of the African Charter on Human and Peoples’ Rights recognizes the right of peoples to freely dispose of their natural resources and provides that the misappropriation of such resources shall give rise to the right of the people to recovery and compensation.”

Despite signs of improving macroeconomic stability, the International Monetary Fund (IMF) has argued that many Nigerians continue to face significant economic hardship as high prices and cost-of-living pressures weigh on households.

In its latest assessment of the Nigerian economy, the Fund acknowledged that ongoing reforms have helped strengthen macroeconomic fundamentals, including improved foreign exchange market stability. and stronger external reserves.

It, however, noted that the benefits of these reforms have yet to fully translate into improved living conditions for many citizens.

The IMF projected Nigeria’s economy to grow by 4 percent in 2025 and 4.1 percent in 2026, supported by policy reforms and improving economic conditions. However, the Fund warned that inflation and rising living costs remain major challenges to inclusive growth.

Recent data from the National Bureau of Statistics showed headline inflation rose to 15.69 percent year-on-year in April 2026, underscoring the continued pressure on household incomes despite signs of economic stabilisation.

According to the IMF, sustaining growth will require policies that not only preserve macroeconomic stability but also improve social outcomes, create jobs and support vulnerable households. The Fund noted that while reform measures are beginning to strengthen confidence in the economy, many Nigerians are yet to feel the full benefits in their daily lives.

The assessment comes as Nigeria continues to implement fiscal, monetary and foreign exchange reforms aimed at boosting investment, strengthening public finances and supporting long-term economic growth. While economic indicators have shown gradual improvement, inflationary pressures and high living costs remain key concerns for households and businesses across the country.