Nigeria’s state-owned oil company, NNPC Limited, recorded a profit after tax of ₦462 billion in May 2026, representing a ₦ 19 billion decline from the ₦481 billion reported in April, despite improvements in crude oil production, natural gas output and pipeline availability.
The company’s latest monthly report summary, published on Wednesday, showed that the May profit was 3.95 per cent lower than the previous month’s performance.
|
|
Revenue also declined significantly during the period. NNPC reported revenue of ₦4.335 trillion in May, down by about ₦635 billion from the ₦4.97 trillion recorded in April.
According to the report reviewed by PREMIUM TIMES, cumulative statutory payments to the Federation between January and May stood at ₦4.858 trillion.
|
|
|
|---|
Although production improved during the month, the company said it continued to grapple with operational challenges, including declining reservoir pressure, underperforming oil wells, lifting constraints and maintenance activities across several upstream assets.
Oil production hits one-year high
The report showed that combined crude oil and condensate production rose to 1.73 million barrels per day (mbpd) in May, the highest monthly output the company has recorded in the past 12 months.
Crude oil production increased to 1.47 mbpd, while condensate production remained steady at 0.25 mbpd.
The increase marks a gradual recovery from production lows recorded late last year, when crude theft, pipeline vandalism, operational downtime and ageing infrastructure weighed heavily on output.
Despite the improvement, NNPC said production remained below target due to operational constraints, particularly at TotalEnergies-operated assets (TEPNG), declining reservoir pressure at the Bonga field, lifting-related curtailments affecting Nembe production, and maintenance activities at the Stardeep Agbami field.
Gas output continues recovery
Natural gas production also maintained its upward trajectory during the month.
According to the report, average daily gas production rose to 7,774 million standard cubic feet per day (mmscf/d), the highest level recorded during the review period.
Gas production fell to 6,284 mmscf/d in September 2025 before steadily recovering in subsequent months, reflecting the country’s increasing emphasis on gas as a transition fuel and a key source of export earnings.
Gas sales, however, eased slightly to 4,921 mmscf/d, compared with 5,044 mmscf/d in April and 5,059 mmscf/d in March.
Pipeline performance
The report showed mixed performance across NNPC’s downstream operations.
Premium Motor Spirit (PMS) availability at NNPC Retail Limited (NRL) stations stood at 57 per cent, indicating that fuel supply across the company’s retail outlets remained below optimal levels.
Pipeline operations, however, recorded stronger performance. The Obiafu-Obrikom-Oben (OB3) gas pipeline achieved 97 per cent availability, while the Ajaokuta-Kaduna-Kano (AKK) pipeline recorded 94 per cent availability. Overall, upstream pipeline availability stood at 98 per cent.
A heat map in the report showed varying levels of fuel availability across the country, with central Nigeria and parts of the South recording relatively stronger product availability than in some northern and eastern states.
Operational challenges persist
NNPC said it is implementing measures to improve production and enhance asset reliability by addressing declining reservoir pressure, poor well performance, lifting constraints, maintenance-related shutdowns and facility reliability issues.
READ ALSO: SERAP sues NNPCL over ‘failure to account for ₦5.9 billion rebranding cost’
Regarding the AKK Gas Pipeline Project, the company said that construction of the mainline, equipment installation, and pre-commissioning activities had advanced substantially, with early gas delivery to Abuja expected in 2026.
For the OB3 Gas Pipeline Project, NNPC reported significant progress on the River Niger crossing following pullback operations and said the remaining section of the pipeline is expected to be commissioned before the end of the third quarter of 2026.
Both gas infrastructure projects are central to Nigeria’s strategy to expand domestic gas utilisation, support industrialisation, and improve electricity generation.
Discover more from Premium Times Nigeria
Subscribe to get the latest posts sent to your email.
