NNPC Revenue Rises to N2.68tr Despite Crude Output Drop as Profit Crashes by 64%

Akahi News learnt that the Nigerian National Petroleum Company Limited recorded a revenue of N2.68 trillion in February 2026, marking a 4.2 per cent increase from the N2.57 trillion posted in January. The revenue growth came despite a troubling decline in crude oil production.

According to the company’s latest monthly report, crude output fell to 1.51 million barrels per day from 1.64mbpd in January. The drop was largely due to pipeline outages and operational disruptions across key assets. When production falls but revenue rises, something unusual is happening beneath the numbers.

But here is the real shocker: while revenue climbed, profit after tax crashed by 64.67 per cent to N136 billion, compared to N385 billion in the previous month. That is not a small dip. That is a collapse. What caused such a dramatic fall?

Presidential Directive Hits NNPC’s Bottom Line

Akahi News gathered that the decline in profit was linked to increased remittances to the Federation Account following a presidential directive that scrapped the 30 per cent profit retention previously enjoyed by the oil and gas sector. That directive has fundamentally altered NNPC’s financial architecture.

As a result, NNPC’s statutory payments to the Federal Government surged by 148.48 per cent, rising from N726 billion in January to N1.8 trillion in February. The company is no longer keeping as much of its earnings. It is sending more to Abuja. And that is why profit has taken a massive hit.

It was alleged that a breakdown of production figures showed crude oil output at 1.27mbpd and condensate at 0.24mbpd. The company attributed the overall drop in production to several challenges: outages on the Trans Forcados Pipeline, start-up issues at the Agbami GTC facilities after maintenance, delays at the Sterling Oguali flow station, and operational constraints at Enyie wells.

These are not minor hiccups. They are recurring nightmares that have plagued Nigeria’s oil sector for years. Pipelines are vandalised or break down. Maintenance takes longer than planned. Wells underperform. And the country bleeds revenue that should be funding schools, hospitals, and roads.

Gas Production Strong, Fuel Availability Drops

In contrast to the struggles in crude, gas production remained strong, reaching 7,458 million standard cubic feet per day—one of the highest levels in recent months. However, gas sales stood at 4,893mmscf/d on a two-month lag, slightly below earlier peaks. The lag suggests that even when gas is produced, getting it to buyers is not instantaneous.

Total crude oil and condensate sales for February were recorded at 23.08 million barrels, down from 28.64 million barrels in October 2025. That decline reflects ongoing production and evacuation challenges that have become all too familiar.

On the downstream side, fuel availability at NNPC Retail Limited stations dropped to 58 per cent. That is a concerning figure. When the national oil company’s own retail outlets cannot guarantee fuel availability, what does that mean for independent marketers? For motorists? For the economy?

Akahi News had earlier reported on recurring fuel scarcity fears across the country. A 58 per cent availability rate is not a crisis—yet. But it is a warning light. And Nigerians have learned to pay attention to warning lights when it comes to petrol.

There is good news, however, on the gas infrastructure front. The Ajaokuta-Kaduna-Kano pipeline is now 93 per cent complete, while the Obiafu-Obrikom-Oben pipeline has reached 96 per cent completion. Work is ongoing to boost gas supply across the country. When completed, these projects could transform Nigeria’s energy landscape—if they are finished and properly maintained.

NNPC said it remains focused on improving production stability through better asset management, faster resolution of operational issues, and stronger collaboration with industry stakeholders. That is the official line. Nigerians have heard similar promises before. What they need to see is results.

It is not a child’s play to run a national oil company in a country where pipelines are routinely sabotaged, where crude theft is endemic, and where the global oil market can turn on a dime. NNPC’s revenue increase despite lower production is a testament to higher crude prices or better commercial terms. But the profit crash is a direct result of the president’s directive.

For the Federal Government, the N1.8 trillion remittance is a win. More money in the Federation Account means more funds for distribution to states and local governments. For NNPC as a profit-driven company, however, the 64 per cent drop in profit after tax is a blow. It raises questions about the company’s ability to reinvest in its own operations, maintain infrastructure, and attract private capital.

The February 2026 report tells a story of contradictions: revenue up, profit down. Production down, gas strong. Fuel availability dropping, pipelines nearing completion. It is a picture of a company—and a country—caught between potential and reality.

Nigerians watching from the sidelines can only hope that the gas pipelines are finished, that the production challenges are resolved, and that the fuel queues never return. But hope is not a strategy. And NNPC’s numbers show that the road ahead remains bumpy.

Key Summary Box

Revenue: NNPC recorded N2.68 trillion in February 2026, a 4.2% increase from January’s N2.57 trillion.
Crude production: Fell to 1.51 million barrels per day from 1.64mbpd in January due to pipeline outages and operational disruptions.
Profit after tax: Crashed by 64.67% to N136 billion from N385 billion in January.
Why profit dropped: A presidential directive scrapped the 30% profit retention in the oil and gas sector, forcing NNPC to remit more to the Federation Account. Statutory payments surged by 148.48% to N1.8 trillion.
Fuel availability: Dropped to 58% at NNPC Retail stations, raising supply concerns.
Gas infrastructure: AKK pipeline is 93% complete; OOO pipeline is 96% complete.
Why it matters to Nigerians: NNPC’s financial health affects government revenue, fuel prices, and the overall economy. A profit crash could limit the company’s ability to invest in maintenance and new projects.
Bottom line: Revenue rose, but profit collapsed. Production fell, but gas remained strong. NNPC is sending more money to Abuja, but keeping less for itself. The contradictions in February’s report reflect the complex reality of Nigeria’s oil and gas sector.