NNPC Reports Decline in Monthly Profit Despite Increased Production
Nigeria’s national oil company, NNPC Limited, posted a profit after tax of ₦462 billion for May 2026, a decrease of ₦19 billion from the ₦481 billion reported in April. This decline occurred despite notable improvements in crude oil and natural gas production, as well as enhancements in pipeline availability.
According to the company’s latest monthly report, May’s profit represented a 3.95% dip compared to the previous month’s figures.
Significant Revenue Drop Impacting Operations
Revenue for the month also experienced a significant decline, with NNPC reporting earnings of ₦4.335 trillion in May—approximately ₦635 billion lower than the ₦4.97 trillion recorded in April. Cumulatively, statutory payments to federations from January to May amounted to ₦4,858 billion, reflecting ongoing challenges in the oil sector.
Despite production improvements, NNPC continues to face operational difficulties, including reduced reservoir pressure, suboptimal well performance, and maintenance activities affecting various upstream assets.
Oil Production Sees Yearly High
In May, NNPC achieved a combined crude oil and condensate production level of 1.73 million barrels per day (mbpd), marking the highest monthly output in the past year. Crude oil production increased to 1.47 mbpd, while condensate production remained steady at 0.25 mbpd, suggesting a gradual recovery from previous lows impacted by issues such as oil theft and pipeline vandalism.
Despite this increased output, NNPC noted that production remains below targets, hindered by operational constraints specifically affecting Total Energies Operated Property (TEPNG), reduced reservoir pressure at the Bonga field, and necessary maintenance work at the Stardeep Agbami field.
Steady Recovery in Gas Production
Natural gas production showed continued improvement throughout May, reaching an average daily output of 7.774 billion standard cubic feet (mmscf/day), the highest level recorded in the current reporting period. This represents a recovery from a decline to 6,284 mmscf/day in September 2025, reflecting Nigeria’s strategy to enhance gas as a critical transition fuel and a vital source of export revenue.
However, gas sales slightly decreased to 4,921 mmscf/day, down from 5,044 mmscf/day in April and 5,059 mmscf/day in March.
Pipelines Exhibit Mixed Performance
NNPC’s report highlighted a mixed performance in its downstream operations. Premium Motor Spirit (PMS) utilization at NNPC Retail Limited (NRL) stations stood at 57%, indicating that fuel supply across its retail outlets is not yet optimal. In contrast, the pipeline business performed robustly, with the Obiafu-Obrikom-Oben (OB3) gas pipeline achieving 97% availability and the Ajaokuta-Kaduna-Kano (AKK) pipeline at 94%. Overall, upstream pipeline availability reached 98%.
The report also indicated varied levels of fuel availability across Nigeria, with central and southern regions experiencing relatively higher availability compared to northern and eastern states.
Addressing Ongoing Operational Challenges
NNPC is actively working to enhance production and asset reliability by tackling issues related to reservoir pressure, well performance, maintenance outages, and facility reliability. The company has reported substantial progress on the AKK Gas Pipeline project, including advancements in mainline construction and pre-commissioning activities, aiming for early gas supplies to Abuja in 2026.
Regarding the OB3 gas pipeline project, NNPC stated it has made notable strides at the Niger River crossing, with plans to complete the remaining sections of the pipeline by the end of the third quarter of 2026. Both projects are integral to Nigeria’s strategy to broaden domestic gas access, support industrial growth, and enhance power generation.
