NNPC profit slumps 64% as revenue climbs to N2.68tn in February

The Nigerian National Petroleum Company Limited (NNPC Ltd) posted a revenue of N2.68 trillion in February 2026, marking a 4.2 per cent increase from N2.57 trillion recorded in January, even as crude oil production declined due to operational disruptions across key assets.

According to the company’s February monthly performance report released on Saturday, the improved revenue performance came amid mounting upstream challenges, including pipeline outages and production constraints that dragged crude output down to 1.51 million barrels per day (mbpd).

Despite the rise in revenue, NNPC’s profit after tax dropped significantly by 64.67 per cent to N136 billion, compared to N385 billion in January, reflecting higher statutory deductions and weaker production performance.

The report attributed the profit decline partly to increased remittances to the Federation Account following a presidential directive that removed the 30 per cent profit retention previously enjoyed in the oil and gas sector. As a result, statutory payments surged by 148.48 per cent, rising from N726 billion in January to N1.804 trillion in February.

Crude oil and condensate production fell from 1.64 mbpd in January to 1.51 mbpd in February, with crude accounting for 1.27 mbpd and condensates contributing 0.24 mbpd.

NNPC explained that the drop in output was driven by multiple operational setbacks, including the shutdown of the Trans Forcados Pipeline due to integrity issues, delayed restart operations at Stardeep Agbami GTC 2 and 3 after maintenance activities, and production delays at the Sterling Oguali flow station. It also cited sludge-related constraints affecting output from Enyie wells.

Despite the downturn in oil production, gas output remained strong, rising to 7,458 million standard cubic feet per day (mmscf/d), reflecting continued strength in Nigeria’s gas sector. However, gas sales stood at 4,893 mmscf/d, measured on a two-month lag basis.

The company also reported that total crude oil and condensate sales stood at 23.08 million barrels in February, a decline from 28.64 million barrels recorded in October 2025, underscoring persistent evacuation and infrastructure bottlenecks.

On the downstream side, Premium Motor Spirit availability at NNPC Retail Limited stations fell to 58 per cent, raising concerns over fuel distribution efficiency and supply consistency in parts of the country.

NNPC noted progress on strategic gas infrastructure projects, including the Ajaokuta–Kaduna–Kano (AKK) gas pipeline, which is now 93 per cent complete, and the Obiafu–Obrikom–Oben (OB3) pipeline, which has reached 96 per cent completion. Both projects are expected to boost domestic gas supply upon completion.

The company said it continues to prioritise production recovery through improved asset reliability, faster resolution of evacuation constraints, and closer collaboration with industry stakeholders.

Upstream pipeline availability was recorded at 93 per cent, indicating relative stability in parts of the network despite ongoing disruptions.

The company stressed that all figures remain provisional and subject to reconciliation with relevant stakeholders.