Nigerian National Petroleum Company Limited, NNPC, recorded a sharp rise in profitability in March 2026, signaling a gradual but notable recovery in Nigeria’s oil and gas sector.
The company posted a profit after tax of N276bn for the month—more than twice its February earnings—driven largely by stronger gas production and improved operational efficiency across key assets.
The performance came despite ongoing challenges linked to pipeline disruptions and logistical constraints.
According to its latest monthly report, revenue climbed to N2.77tn, reflecting a 3.51% increase compared to February. Production figures also showed encouraging trends, with crude oil and condensate output stabilising at 1.56 million barrels per day.
“This edition records month-on-month growth across key production metrics, with crude oil and condensate output rising to 1.56 mmbopd and gas production climbing to 7,731 mmscf/d.”
Although crude production remained unchanged month-on-month, it marked an improvement from January’s lower output. Gas production, however, stood out as the strongest performer.
Over the first quarter of the year, gas output steadily increased—from 7,281 mmscf/d in January to 7,458 mmscf/d in February—before peaking at 7,731 mmscf/d in March. This represents the highest level recorded within the past 12 months.
The company attributed this improvement largely to operational efficiency, particularly in offshore operations.
“Production improved compared to the previous month, driven by the early completion of the OML 118 Bonga Turnaround Maintenance, delivered 12 days ahead of schedule.”
However, the gains were not without setbacks. Pipeline disruptions significantly affected production during the reporting period, especially outages along key infrastructure.
“The Trans Forcados Pipeline outage, resulting from a leak at the Keremor axis, negatively impacted production volumes, leading to curtailments across several assets…”
Despite these challenges, NNPC stated that it is actively implementing recovery strategies aimed at stabilising output and improving resilience across its operations.
“NNPC Limited continues to strengthen production resilience by executing restoration plans focused on improving asset reliability…”
A closer look at sales data reveals a mixed picture. Crude oil sales declined significantly to 17.37 million barrels in March, down from both February and January levels—an indication that evacuation and logistics issues remain unresolved.
In contrast, gas sales increased to 5,059 mmscf/d, further reinforcing the growing importance of gas as a key driver of revenue and energy supply in Nigeria.
The financial performance reflects this shift, with profit after tax rising by approximately 102.94% month-on-month.
“The report covers key figures, including revenue of N2.774bn (up by 3.51 per cent… profit after tax of N276bn…”
On the infrastructure front, the company reported steady progress on major gas pipeline projects. Work on the Ajaokuta-Kaduna-Kano pipeline continues, with key milestones already achieved, including the completion of welding works on a spur line connected to the Gwagwalada power plant.
“At the same time, drilling operations are ongoing for the Obiafu-Obrikom-Oben Gas Pipeline River Niger Crossing.”
Between January and March, the company remitted a total of N2.89tn to the Federation, highlighting its continued role as a major contributor to government revenue.
However, downstream performance remains a concern. Petrol availability across NNPC retail outlets stood at 56%, suggesting that supply chain and distribution issues are still affecting the sector.
The company also noted that all reported figures remain provisional and subject to reconciliation.
“All production, sales and financial figures are provisional and subject to reconciliation with relevant stakeholders.”
Overall, the March results point to a sector in recovery—buoyed by stronger gas output and improved operational efficiency, but still navigating infrastructure bottlenecks and supply challenges that could impact sustained growth.
