Oil output falls to 1.51mbpd as NNPC remits N1.804trn amid pipeline disruptions

ABUJA – Nigeria’s crude oil and condensate production declined to an average of 1.51 million barrels per day (mbpd) in February 2026, even as the Nigerian National Petroleum Company Limited (NNPC Limited) reported a sharp increase in remittances, paying N1.804 trillion into the Federation Account within the same period.

According to the company’s February Monthly Report Summary released at the weekend, the production downturn was largely triggered by operational disruptions, including the Trans Forcados Pipeline outage caused by integrity issues, startup challenges at Stardeep Agbami GTC 2 and 3 following turnaround maintenance, delays at the Sterling Oguali flow station, and sludge management constraints at Enyie wells.

Despite the fall in output, the report showed improved financial inflows, with total revenue rising to N2.68 trillion in February from N2.57 trillion recorded in January.

However, Profit After Tax (PAT) dropped significantly to N136 billion in February, down from N385 billion in the previous month, reflecting volatility in earnings despite stronger top-line performance.

The company noted that statutory remittances surged markedly to N1.804 trillion in February, compared to N726 billion in January, attributing the jump to improved compliance and recent policy reforms in the oil and gas revenue framework.

It also stated that crude oil and condensate production averaged 1.51mbpd during the month under review.

NNPC Ltd explained that ongoing stabilisation efforts across key assets, including enhanced reliability programmes, faster evacuation resolutions, and increased coordination with operators, were beginning to support gradual recovery in production performance.

It also highlighted progress on the Ajaokuta–Kaduna–Abuja (AKK) gas pipeline project, aimed at accelerating early gas delivery to Abuja as part of broader energy infrastructure expansion.

In February 2026, President Bola Tinubu signed an Executive Order restructuring revenue remittance processes in the sector.

The directive suspended the collection of management and frontier exploration fees by NNPC Ltd and mandated full remittance of oil and gas revenues to the Federation Account.

It also established an inter-agency implementation committee chaired by the Minister of Finance and Coordinating Minister of the Economy to oversee compliance.

The reforms, government officials said, are intended to improve transparency, strengthen accountability, and ensure that revenue flows from the oil and gas sector align with constitutional provisions, even as the industry continues to grapple with operational challenges affecting output stability.