Juliet Ezeh
The Nigerian National Petroleum Company Limited reported a strong revenue performance of N2.68 trillion in February 2026, but this came with a significant downside as profit after tax plunged by 64.67 percent.
The company’s latest monthly report reveals a growing imbalance between earnings and profitability, raising fresh concerns about cost pressures, policy changes, and operational inefficiencies in Nigeria’s oil sector.
Revenue increased by 4.2 percent month-on-month, rising from N2.57 trillion recorded in January. However, profit dropped sharply from N385 billion to N136 billion, highlighting a widening gap between gross income and net returns.
Why NNPC Profit Fell Despite Higher Revenue
The sharp drop in profit is largely linked to increased financial obligations to the Federal Government following a recent policy shift.
A presidential directive removed the 30 percent profit retention previously allowed, forcing the company to remit more funds. As a result, statutory payments surged to N1.804 trillion, representing a 148.48 percent increase from January.
This suggests that while revenue remains strong, higher government remittances are significantly reducing retained earnings and profitability.
Oil Production Drops to 1.51mbpd
Nigeria’s crude oil production declined from 1.64 million barrels per day in January to 1.51 million barrels per day in February.
Crude oil output stood at 1.27mbpd, while condensate contributed 0.24mbpd.
The production drop was attributed to several operational challenges, including disruptions on the Trans Forcados Pipeline, delays in project delivery, and technical issues affecting key upstream assets.
Gas Output Remains Strong Amid Oil Challenges
Despite the decline in crude oil output, gas production remained strong at 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, slightly below previous peak levels due to market and timing factors.
Fuel Supply Concerns as PMS Availability Drops
On the downstream side, fuel supply showed signs of pressure as the availability of Premium Motor Spirit dropped to 58 percent at NNPC retail stations.
This raises concerns about fuel distribution efficiency and possible supply constraints across parts of the country.
Key Gas Projects Near Completion
The company also reported progress on major gas infrastructure projects critical to Nigeria’s energy future.
The Ajaokuta–Kaduna–Kano pipeline has reached 93 percent completion, with ongoing work aimed at supplying gas to northern regions, including Abuja.
Similarly, the Obiafu–Obrikom–Oben pipeline has reached 96 percent completion, with drilling operations continuing.
What This Means for Nigeria’s Economy
The report highlights a key trend of strong revenue generation alongside declining profitability and persistent production challenges.
While the company continues to play a critical role in supporting government finances, operational inefficiencies, infrastructure issues, and policy-driven remittances are limiting overall performance.
Sustained improvements in pipeline security, infrastructure reliability, and project delivery will be essential to stabilise Nigeria’s oil and gas sector.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.