Nigeria recorded a strong increase in external earnings in the second quarter of 2026, driven mainly by higher exports of crude oil, natural gas and refined petroleum products.

Data from the Central Bank of Nigeria showed that total export earnings rose to $20.08bn in Q2 from $15.56bn in the first quarter.

Crude oil exports increased by 15.78 per cent to $9.39bn, while natural gas exports rose by 40.15 per cent to $3.63bn during the period.

The higher export receipts also strengthened Nigeria’s current account position. The country’s current account surplus climbed to $7.54bn in Q2, representing a 67.93 per cent increase from the $4.49bn recorded in Q1. It was also higher than the $5.17bn surplus recorded in Q2 2025.

The CBN attributed the improvement to stronger performance across several export categories.

Exports of refined petroleum products rose by 66.24 per cent to $3.94bn, while non-oil exports increased by 25.30 per cent to $3.12bn.

Nigeria also spent less on crude oil imports, with the value falling from $1.39bn in Q1 to $580m in Q2.

The increase in oil-related earnings comes as the country continues efforts to raise crude production and reduce losses linked to oil theft and attacks on petroleum infrastructure.

Pipeline security has remained a major part of those efforts, with private security contractors and government agencies involved in monitoring critical oil infrastructure, particularly in the Niger Delta.

Industry stakeholders have linked improved surveillance of pipelines to more consistent crude flows and reduced incidents of illegal tapping, although production growth also depends on investment, field development and regulatory efficiency.

Nigeria’s crude and condensate production increased from 1.48 million barrels per day in February to 1.735 million barrels per day in June, according to figures from the Nigerian Upstream Petroleum Regulatory Commission.

The commission has also stressed the need for greater investment and technical expertise to sustain production growth, particularly as the country seeks to develop offshore and deepwater assets.

Investment remains a key challenge for the industry. Annual investment in Nigeria’s oil and gas sector has fallen to about $2bn, compared with $26bn recorded in 2014.

To attract fresh capital, the Federal Government and regulators have introduced incentives and advanced several major projects.

One of the projects is the Bonga Southwest/Aparo development in Oil Mining Lease 118, which is expected to attract as much as $21bn in investment. The project has a projected peak output of about 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day.

The Nigerian National Petroleum Company Limited and its partners have signed agreements and completed the Pre-FEED phase for the project, moving it closer to the next stage of development.

The government has also introduced new incentives for deepwater oil and gas projects as part of efforts to make offshore investments more attractive.

Meanwhile, winners of Nigeria’s 2025 oil and gas licensing round have begun meeting post-award requirements. The NUPRC said 31 companies won 37 oil and gas blocks and warned that companies that fail to pay their required signature bonuses within the stipulated period could lose their provisional awards.

The commission said the applicable signature bonuses range from $3m to $7m per block, alongside other financial guarantees and regulatory requirements.

Industry stakeholders say maintaining Nigeria’s recent production gains will require more than new exploration. They have called for faster development of discovered reserves, investment in mature fields, improved infrastructure, stronger security and quicker regulatory approvals.

Several planned projects, including Bonga North, Southwest/Aparo, Zabazaba and Etan, are expected to contribute to future production if successfully developed.

The combination of higher production, stronger export earnings and new investment could provide additional support for Nigeria’s foreign exchange inflows and government revenues, provided the country can sustain crude and gas output over the longer term.