ABUJA, Nigeria (VOICE OF NAIJA)- The Nigerian National Petroleum Company Limited has reported a revenue of N2.68tn from its operations in February 2026, even as crude oil production declined to 1.51 million barrels per day due to pipeline outages and operational challenges.
The company recorded a 4.2 per cent increase in revenue, rising from N2.57tn in January to N2.68tn in February.
However, profit after tax dropped sharply by 64.67 per cent to N136bn, compared to N385bn in the previous month.
According to details from its February monthly report summary released on Saturday, profit after tax stood at N136bn, while statutory payments to the Federal Government increased to N1.804tn, highlighting the company’s continued fiscal significance despite production setbacks.
The steep decline in profit followed increased remittances to the Federation after a presidential directive scrapped the 30 per cent retention on oil and gas profits.
Consequently, NNPC’s remittance surged by 148.48 per cent, rising from N726bn in January to N1.8tn in February.
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The report showed that crude oil and condensate production fell from 1.64 million barrels per day in January to 1.51 million barrels per day in February, reflecting disruptions across key upstream operations.
A breakdown indicated that crude oil output stood at 1.27mbpd, while condensate contributed 0.24mbpd during the period.
The company linked the decline to several operational issues, including outages on critical export infrastructure.
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 drop in crude production, gas output remained strong, increasing to 7,458 million standard cubic feet per day one of the highest levels recorded in recent months.
However, gas sales stood at 4,893mmscf/d on a two-month lag basis, slightly below peak levels seen in mid-2025.
The report also showed that total crude oil and condensate sales for February stood at 23.08 million barrels, lower than the 28.64 million barrels recorded in October 2025, reflecting both production and evacuation challenges.
On the downstream side, the availability of Premium Motor Spirit at NNPC Retail Limited outlets declined to 58 per cent, raising concerns over fuel distribution efficiency and potential supply constraints in some parts of the country.
In terms of infrastructure, the company reported steady progress on key gas pipeline projects central to Nigeria’s domestic gas expansion plans.
The Ajaokuta-Kaduna-Kano gas pipeline reached 93 per cent completion, with ongoing work aimed at enabling early gas supply to Abuja and other northern regions.
Similarly, the Obiafu-Obrikom-Oben gas pipeline project recorded 96 per cent completion, with drilling activities continuing in collaboration with stakeholders.
The report stated, “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.”
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Upstream pipeline availability stood at 93 per cent, indicating relative stability in parts of the network despite disruptions during the month.
Nigeria has continued to face challenges in meeting its crude oil production targets due to factors such as pipeline vandalism, oil theft, ageing infrastructure, and delayed upstream investments.
The Trans Forcados Pipeline, a major crude evacuation route, has remained vulnerable to outages, often resulting in significant production losses.
Meanwhile, the Federal Government has increasingly relied on NNPC Limited as a key revenue source amid fiscal pressures and foreign exchange challenges.
The company’s strong revenue and statutory remittances in February underscore its vital role in supporting government finances, even as operational inefficiencies continue to affect production.
The report noted that all figures are provisional and subject to reconciliation with relevant stakeholders.