N462bn: NNPC Profit Falls As Revenue Sheds N636bn
Higher crude flows failed to lift the bottom line for the Nigerian National Petroleum Company Limited in May 2026, as the state oil firm recorded a profit after tax of N462 billion, down from the N481 billion posted in April, despite pumping its most crude in nearly a year.
The company’s Monthly Report Summary for May, released on Wednesday, showed that combined crude oil and condensate production rose to 1.73 million barrels per day, up from 1.68 million barrels in April and the highest monthly output in at least twelve months. Crude oil alone accounted for 1.47 million barrels daily, with condensate steady at 0.25 million.
The disconnect between rising output and falling profit was driven by revenue. NNPC generated N4.335 trillion in May, a drop of about N636 billion, or roughly 12.8 per cent, from the N4.971 trillion recorded in April. Crude oil and condensate sales fell sharply to 18.95 million barrels from 23.65 million in April, pointing to weaker offtake even as production climbed.
NNPC linked the production gains to improved asset reliability and better facility performance, but said output stayed below target because of well performance issues at TEPNG, reservoir pressure limitations at Bonga, lifting curtailments at Nembe, and maintenance activity at Stardeep Agbami. Natural gas production rose to 7,774 million standard cubic feet per day, the highest in the review period, while upstream pipeline availability held firm at 98 per cent. Petrol availability at NNPC retail stations stood at 57 per cent, up from 54 per cent in April.
The company disclosed that it remitted N1.144 trillion to the Federation Account in May, lifting cumulative statutory payments between January and May 2026 to N4.858 trillion. That figure carries weight against a backdrop of sustained scrutiny over how much of NNPC’s earnings actually reach the three tiers of government. Data presented to the Federation Account Allocation Committee earlier in the year showed the firm remitted just N180.04 billion in production sharing contract profit oil in the first quarter, against a budgeted N1.40 trillion, a shortfall of N1.22 trillion, with no interim dividend recorded for January, February or March. President Bola Tinubu signed Executive Order Nine on February 18 to restructure the oil revenue remittance framework, directing that the Federation receive the full value of PSC profit oil.
The May numbers also sit within a longer performance arc. NNPC posted a record profit after tax of N5.4 trillion on revenue of N45.1 trillion for the 2024 financial year, then reported N5.76 trillion profit on N60.5 trillion revenue for 2025. Group Chief Executive Officer Bayo Ojulari has tied the company’s direction to a strategy anchored on “transparency, innovation, and disciplined growth,” with targets to raise crude output to 2 million barrels per day by 2027 and 3 million by 2030, alongside a possible listing on international exchanges.
Two gas projects central to that ambition moved closer to the finish line. The Obiafu Obrikom Oben (OB3) pipeline reached 97 per cent completion, with commissioning of the remaining section expected before the end of the third quarter, while the Ajaokuta Kaduna Kano (AKK) pipeline hit 94 per cent, as the company targets first gas delivery to Abuja before the close of 2026.**