Nigeria’s national oil company, Nigerian National Petroleum Company Limited, recorded a revenue of ₦2.68 trillion in February 2026, reflecting a modest increase from the ₦2.57 trillion generated in January, even as crude oil production declined during the period.
According to the company’s monthly operational report, revenue rose by 4.2 percent month-on-month. However, this growth did not translate into profitability, as profit after tax dropped significantly by 64.67 percent from ₦385 billion in January to ₦136 billion in February.
The sharp fall in profit has been linked to increased statutory remittances to the Federal Government, which climbed to ₦1.804 trillion. This followed a presidential directive removing the company’s 30 percent retention on oil and gas profits, resulting in a 148.48 percent surge in remittances compared to the previous month.
On the production side, crude oil and condensate output declined from 1.64 million barrels per day in January to 1.51 million barrels per day in February. Of this, crude oil accounted for 1.27mbpd, while condensate contributed 0.24mbpd.
The company attributed the drop in production to several operational setbacks, including disruptions to critical infrastructure and delays in upstream activities.
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.”
Despite the production dip, gas output remained resilient, rising to 7,458 million standard cubic feet per day one of the strongest levels recorded in recent months. Gas sales, however, stood at 4,893mmscf/d on a lag basis, slightly below previous peak levels.
Total crude oil and condensate sales for February reached 23.08 million barrels, a decline compared to 28.64 million barrels recorded in October 2025, reflecting both production and evacuation challenges.
In the downstream segment, the availability of Premium Motor Spirit at NNPC Retail stations fell to 58 percent, raising concerns about distribution efficiency and potential supply constraints in parts of the country.
On infrastructure development, the report highlighted progress on key gas pipeline projects critical to Nigeria’s energy strategy. The Ajaokuta-Kaduna-Kano pipeline has reached 93 percent completion, while the Obiafu-Obrikom-Oben project stands at 96 percent, with construction and drilling activities ongoing.
The company reaffirmed its commitment to improving output and operational efficiency, stating, “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.”
Pipeline availability in the upstream sector was reported at 93 percent, indicating relative stability despite disruptions experienced during the month.
Nigeria continues to face challenges in meeting its crude oil production targets due to factors such as pipeline vandalism, oil theft, ageing infrastructure, and delayed investments. The Trans Forcados Pipeline, in particular, remains a critical but vulnerable export route.
Even so, the company’s strong revenue and increased remittances underscore its vital role in supporting government finances, especially amid ongoing fiscal pressures.
The report noted that all figures remain provisional and subject to reconciliation with relevant stakeholders.
