NNPC Rakes In ₦2.68 Trillion Revenue As Profit Plunges 64%

The Nigerian National Petroleum Company (NNPC) Limited recorded a revenue of ₦2.68 trillion from its operations in February 2026, representing a 4.2 per cent increase from the ₦2.57 trillion posted in January.

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However, the company’s profit after tax dropped sharply by 64.67 per cent to ₦136 billion, down from ₦385 billion recorded in the previous month, reflecting mounting operational and fiscal pressures.

Details from the firm’s February monthly report summary released on Saturday showed that while earnings improved, profitability weakened significantly.

The decline in profit was largely attributed to increased statutory remittances to the Federal Government following a presidential directive that removed the 30 per cent profit retention in the oil and gas sector.

As a result, NNPC’s remittance surged by 148.48 per cent, rising from ₦726 billion in January to ₦1.804 trillion in February.

The report highlighted the company’s continued fiscal importance, noting that its contributions remain a major source of government revenue amid economic pressures.

Crude Production Drops To 1.51mbpd

Crude oil and condensate production fell to 1.51 million barrels per day in February, down from 1.64 million barrels per day in January, underscoring persistent challenges in the upstream segment.

A breakdown showed crude oil output at 1.27mbpd, while condensate production stood at 0.24mbpd.

The company attributed the decline to multiple operational setbacks affecting key assets and infrastructure.

It stated: “February production performance was impacted by the combined effect of the outage of the Trans Forcados Pipeline due to integrity issues, start-up challenges of Stardeep Agbami GTC 2 and 3 following completion of turnaround maintenance, delayed completion of the Sterling Oguali flow station, and production ramp-up constraints from Enyie wells due to sludge management issues, among other operational challenges.”

Naija News reports that despite the drop in crude oil production, gas output recorded a strong performance, rising to 7,458 million standard cubic feet per day, one of the highest levels in recent months.

Gas sales, however, stood at 4,893mmscf/d on a two-month lag basis, slightly below peak levels recorded in mid-2025.

Meanwhile, total crude oil and condensate sales for February stood at 23.08 million barrels, significantly lower than the 28.64 million barrels recorded in October 2025, reflecting both production and evacuation constraints.

Fuel Availability Dips

Naija News reports that on the downstream side, the report showed that the availability of Premium Motor Spirit at NNPC Retail stations dropped to 58 per cent.

This development has raised concerns about fuel distribution efficiency and the possibility of supply tightness in parts of the country.

The company also reported progress on critical gas pipeline projects aimed at boosting domestic supply and strengthening energy security.

The Ajaokuta-Kaduna-Kano gas pipeline project has reached 93 per cent completion, with ongoing work targeted at delivering early gas supply to Abuja and other northern regions.

Similarly, the Obiafu-Obrikom-Oben gas pipeline project recorded 96 per cent completion, with drilling operations continuing in collaboration with stakeholders.

NNPC reaffirmed its commitment to restoring production levels through improved operational efficiency and infrastructure reliability.

“We will continue to strengthen production resilience and restore output through improved asset reliability, faster resolution of evacuation constraints, timely delivery of critical infrastructure, and deeper collaboration with operators and other stakeholders to drive disciplined and accountable production recovery across key assets,” the report stated.

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

Nigeria has continued to face difficulties meeting its crude oil production targets due to pipeline vandalism, oil theft, ageing infrastructure, and delayed investments in upstream operations.

The Trans Forcados Pipeline, a major crude evacuation route, has remained particularly vulnerable to outages, often leading to significant production losses.

Despite these challenges, the strong revenue and remittances recorded in February underscore NNPC’s critical role in supporting government finances, especially amid fiscal and foreign exchange constraints.

The report noted that all figures remain provisional and subject to reconciliation with relevant stakeholders, as efforts continue to stabilise production and unlock the country’s oil and gas potential.