NNPC Reports Revenue Growth in February 2026 Amidst Production Declines and Profit Compression

ABUJA NIGERIA:  The Nigerian National Petroleum Company Limited (NNPC) has announced a revenue of N2.68 trillion for February 2026, representing a 4.2% increase over the N2.57 trillion recorded in January. Despite the top-line growth, the national oil company faced significant operational headwinds and a sharp contraction in bottom-line profitability.

Production Challenges and Operational Constraints

The company’s monthly performance report revealed a decline in total crude oil output, which fell to 1.51 million barrels per day (mbpd) from 1.64 mbpd in January. This output comprises 1.27 mbpd of crude oil and 0.24 mbpd of condensate.

The NNPC attributed the production shortfall to several technical and logistical disruptions, including:

Infrastructure Outages: Significant downtime on the Trans Forcados Pipeline.

Technical Delays: Start-up challenges at the Agbami GTC facilities following scheduled maintenance.

Operational Bottlenecks: Delays at the Sterling Oguali flow station and constraints at Enyie wells.

Total sales of crude and condensate for the month stood at 23.08 million barrels, a notable decrease from the 28.64 million barrels recorded in October 2025.

Impact of Fiscal Policy on Profitability

While revenue climbed, Profit After Tax (PAT) plummeted by 64.67%, falling to N136 billion from N385 billion in January. This decline is primarily attributed to a shift in fiscal policy following a presidential directive that abolished the 30% profit retention mechanism for the oil and gas sector.

Consequently, NNPC’s statutory remittances to the Federation Account surged by 148.48%, rising from N726 billion to N1.8 trillion. This reinforces the company’s position as the primary driver of federal revenue, even as it impacts internal capital reserves.

Gas Sector Performance and Infrastructure Progress

In contrast to the liquid hydrocarbons sector, gas production showed resilience, reaching 7,458 million standard cubic feet per day (mmscf/d). However, realized gas sales (reported on a two-month lag) were recorded at 4,893 mmscf/d.

Progress remains steady on critical midstream infrastructure intended to bolster domestic energy security:

• AKK Pipeline: The Ajaokuta-Kaduna-Kano project is now 93% complete.

• OB3 Pipeline: The Obiafu-Obrikom-Oben gas link has reached 96% completion.

Downstream Concerns

The report also highlighted potential vulnerabilities in the domestic fuel supply chain. Fuel availability at NNPC Retail Limited stations dropped to 58%, a figure that may signal impending supply inefficiencies or localized shortages if distribution challenges persist.

"NNPC remains committed to enhancing production stability through optimized asset management and strengthened collaboration with industry partners to resolve recurring operational disruptions," the company stated in its official release.