NNPCL Revenue Climbs Despite Slump in Crude Output
The Nigerian National Petroleum Company Limited (NNPCL) has reported a decline in oil production for February 2026, even as monthly revenues saw a modest increase. Output fell to 1.51 million barrels per day (mbpd), a notable slide from the 1.64 mbpd achieved in January. This dip highlights the persistent volatility in Nigeria’s upstream sector despite ongoing efforts to stabilise the industry. The January figures comprised 1.27 million barrels of crude and 240,000 barrels of condensate.
Financial performance remained resilient despite the thinning volumes at the wellhead. The state oil firm generated N2.68 trillion in revenue during the period, marking an increase of N110 billion over the previous month. After tax, the company recorded a profit of N136 billion. Statutory payments to the federation account totalled N1.8 trillion, providing a necessary, if strained, cushion for the national budget.
The company blames technical and logistical hurdles for the production slip. It claims to be strengthening “production resilience” by addressing asset reliability and evacuation constraints. Faster resolution of these bottlenecks is essential if the country is to meet its ambitious fiscal targets. Management is also pushing for deeper collaboration with private operators to drive a more disciplined recovery across key oil assets.
Progress on critical gas infrastructure remains a central plank of the company’s midstream strategy. Construction on the Ajaokuta-Kaduna-Kano (AKK) gas pipeline continues, with the firm aiming for early gas delivery to the Federal Capital Territory. This project is vital for the industrialisation of northern Nigeria. Meanwhile, drilling operations for the River Niger crossing of the Obiafu-Obrikom-Oben (OB3) pipeline are currently underway.
Security and operational stability continue to cast a shadow over the broader energy landscape. While President Bola Tinubu has pledged to better equip the armed forces to crush bandits and terrorists, the impact on oil infrastructure remains a concern. The loss of a senior officer in a recent Boko Haram attack underscores the risks faced by those protecting national assets. Without a secure environment, consistent production will remain an elusive goal.
The NNPCL insists that its infrastructure delivery remains on course despite these headwinds. Timely completion of the OB3 and AKK pipelines would significantly alter the domestic energy mix. However, the immediate challenge remains the crude output gap. Until the company can bridge the difference between projected capacity and actual barrels, the treasury will remain vulnerable to production shocks.