NNPC Revenue Falls Despite Stable Oil Production
NNPC reported lower revenue in May as production stayed stable and major gas infrastructure projects moved closer to completion.
The Nigerian National Petroleum Company Limited (NNPC) reported lower earnings in May 2026, even as crude oil and natural gas production remained largely stable.
According to the company’s latest Monthly Report Summary, NNPC revenue fell by almost 13 per cent to ₦4.335 trillion, down from ₦4.971 trillion recorded in April. Profit after tax also declined from ₦481 billion to ₦462 billion, suggesting that market conditions and operational challenges affected the company’s financial performance despite steady production levels.
The report showed that NNPC produced 1.73 million barrels of crude oil and condensate per day during May, while natural gas production reached 7,774 million standard cubic feet per day. Upstream pipeline availability stood at 98 per cent, while Premium Motor Spirit (PMS) availability at NNPC Retail Limited stations averaged 57 per cent.
The company said it is addressing issues affecting production, including declining reservoir pressure, lifting constraints, maintenance shutdowns, and facility reliability.
“The company is intensifying efforts to address performance issues, declining reservoir pressure, lifting constraints, maintenance-related shutdowns and facility reliability challenges. These measures are expected to reduce production deferments, improve asset availability and boost overall output.”
Between January and May 2026, NNPC made statutory payments of ₦4.858 trillion to the Federation. The company also reported significant progress on key gas infrastructure projects. The Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline has reached 94 per cent completion and is expected to begin supplying gas to Abuja later this year, while the OB3 River Niger Crossing project is now 97 per cent complete.
Beyond its energy operations, NNPC said the NNPC Foundation donated a 1.5 Tesla Magnetic Resonance Imaging (MRI) system and supporting equipment to the Nnamdi Azikiwe University Teaching Hospital in Nnewi, Anambra State. The company said the facility is improving access to advanced diagnostic services and reducing the need for patients to seek MRI scans outside the South-East.
The company noted that all financial and operational figures remain provisional and subject to reconciliation with relevant stakeholders.
Do you think ongoing gas infrastructure projects will strengthen NNPC revenue and Nigeria’s energy sector in the long term?
