The Nigerian National Petroleum Company Limited (NNPCL) generated N2.68 trillion in revenue in February 2026, marking a 4.2 per cent increase from the N2.57 trillion recorded in January, despite a drop in crude oil production.
However, the national oil company’s profit after tax plunged sharply by 64.67 per cent to N136 billion, down from N385 billion in the previous month.
Revenue Up, Profit Down
According to the company’s February monthly report released on Saturday, the decline in profit was largely driven by increased remittances to the Federal Government.
Statutory payments surged to N1.804 trillion, following a presidential directive scrapping the 30 per cent profit retention in the oil and gas sector. This led to a 148.48 per cent rise in remittances, compared to N726 billion in January.
Despite lower profitability, the figures underscore NNPCL’s continued importance as a major contributor to government revenue amid ongoing fiscal pressures.
Oil Production Falls to 1.51mbpd
Crude oil and condensate production dropped to 1.51 million barrels per day (mbpd) in February, from 1.64mbpd recorded in January.
A breakdown shows:
Crude oil: 1.27mbpd
Condensate: 0.24mbpd
The company attributed the decline to several operational setbacks, including outages and infrastructure challenges.
Key Disruptions
NNPCL identified major factors behind the production dip, including:
Outage of the Trans Forcados Pipeline due to integrity issues
Start-up challenges at Agbami GTC 2 and 3 after maintenance
Delayed completion of the Sterling Oguali flow station
Production constraints at Enyie wells linked to sludge management
These disruptions affected both production volumes and crude evacuation.
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Gas Output Remains Strong
In contrast, gas production rose to 7,458 million standard cubic feet per day, one of the highest levels in recent months.
Gas sales stood at 4,893mmscf/d (on a two-month lag basis), slightly below mid-2025 peaks.
Crude Sales and Fuel Supply Concerns
Total crude oil and condensate sales fell to 23.08 million barrels, compared to 28.64 million barrels recorded in October 2025.
Meanwhile, fuel availability at NNPC Retail stations dropped to 58 per cent, raising concerns about distribution efficiency and potential supply tightness.
Progress on Key Gas Projects
NNPCL reported continued progress on critical gas infrastructure projects:
Ajaokuta–Kaduna–Kano (AKK) Pipeline – 93% complete
Obiafu–Obrikom–Oben (OB3) Pipeline – 96% complete
These projects are central to Nigeria’s domestic gas expansion strategy and are expected to boost supply, particularly to northern regions.
Outlook
The company reaffirmed its commitment to restoring production levels through:
Improved asset reliability
Faster resolution of evacuation constraints
Timely delivery of key infrastructure
Stronger collaboration with industry stakeholders
Upstream pipeline availability stood at 93 per cent, indicating relative stability despite recent disruptions.
Context
Nigeria continues to face challenges in meeting crude oil production targets due to:
Pipeline vandalism
Oil theft
Ageing infrastructure
Delayed upstream investments
The recurring outages on the Trans Forcados Pipeline remain a major risk to output stability.
Bottom Line
While NNPCL’s revenue growth and increased remittances highlight its critical role in supporting government finances, falling production and shrinking profit margins signal ongoing structural and operational challenges within Nigeria’s oil sector.
