NNPC profit falls 4.1% to N462bn despite highest oil output in one year
The Nigerian National Petroleum Company (NNPC) Limited recorded a 4.1 per cent decline in profit after tax to N462 billion in May 2026, even as crude oil and condensate production climbed to its highest level in nearly one year, underscoring the challenge of translating higher output into stronger earnings.
According to the company’s May 2026 Monthly Report Summary, profit after tax fell from N481 billion in April, while revenue dropped by 12.9 per cent to N4.33 trillion, down from N4.97 trillion recorded in the previous month. Between January and May 2026, NNPC remitted N4.85 trillion to the Federation Account, reinforcing its role as a major contributor to government revenue.
The report showed that crude oil and condensate production rose to 1.73 million barrels per day (mbpd) in May, compared with 1.68 mbpd in April and 1.56 mbpd in March. The latest output represents the company’s strongest monthly production performance since June 2025, driven by improved asset reliability and operational efficiency.
However, despite the recovery, production remained below the Federal Government’s 2026 budget benchmark of 2.06 million barrels per day, highlighting the gap between actual output and the volume required to support projected oil revenues.
NNPC attributed the shortfall to well performance challenges, reservoir pressure limitations at the Bonga field, lifting constraints at Nembe, and planned maintenance activities at the Stardeep Agbami field.
Although production improved, crude oil and condensate sales declined to 23.65 million barrels in May from 25.85 million barrels in April, suggesting weaker sales volumes may have contributed to the drop in revenue and profitability.
Natural gas production recorded a marginal increase to 7.77 million standard cubic feet per day, up from 7.73 million standard cubic feet per day in April, while gas sales eased during the month.
The report also showed that upstream pipeline availability remained robust at 98 per cent, reflecting continued improvements in operational reliability.
On strategic gas infrastructure, NNPC disclosed that the Obiafu-Obrikom-Oben (OB3) gas pipeline has reached 97 per cent completion, with commissioning expected before the end of the third quarter of 2026.
The company added that the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project is now 94 per cent complete and remains on track to supply gas to Abuja before the end of 2026.
The latest figures suggest that while operational performance continues to improve, NNPC faces the challenge of boosting sales volumes and sustaining production growth to support profitability and help the Federal Government achieve its ambitious oil revenue targets for the year.
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