The Nigerian National Petroleum Company Limited (NNPC) recorded lower revenue and profit in May 2026 despite maintaining stable crude oil and natural gas production during the month.
According to the company’s May 2026 Operational and Financial Report, revenue declined to N4.335 trillion in May from N4.97 trillion recorded in April, while profit after tax fell to N462 billion from N481 billion over the same period.
The report, however, showed that the national oil company sustained upstream production and made further progress on key gas infrastructure projects expected to strengthen domestic gas supply.
What the report is saying
NNPC’s latest operational report showed a decline in earnings alongside stable production performance.
- Profit after tax declined by about 4% to N462 billion, compared with N481 billion recorded in the previous month.
- Combined crude oil and condensate production averaged 1.73 million barrels per day (mmbopd) during May.
- Natural gas production stood at 7,774 million standard cubic feet per day (mmscf/d).
The report indicates that while production remained relatively steady, earnings came under pressure amid changing market conditions.
More Insights
Beyond its financial performance, NNPC continued to make progress on strategic gas infrastructure projects and statutory remittances.
- The company remitted N4.858 trillion in statutory payments between January and May 2026, including taxes, royalties and other obligations to the Federation.
- Construction, equipment installation and pre-commissioning activities on the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline advanced during the month, with early gas delivery to Abuja targeted in 2026.
- NNPC also reported significant progress on the Obiafu-Obrikom-Oben (OB3) Gas Pipeline, including post-pullback pre-commissioning activities and tie-in works.
The company expects the OB3 pipeline to be fully commissioned by the end of the third quarter of 2026.
The completion of both projects is expected to improve gas transportation, strengthen domestic supply and support industrial and power sector development.
The decline in revenue and profit suggests softer earnings for NNPC in May, even as production levels remained stable.
What you should know
The Federal Government has continued to prioritise increased crude oil production and gas development as part of its strategy to boost revenue, improve energy security and attract investment into the petroleum sector.
- The AKK Gas Pipeline is expected to expand gas supply to industries, power plants and manufacturers across northern Nigeria.
- The OB3 Gas Pipeline is designed to eliminate key gas transportation bottlenecks and improve supply reliability across the country.
- NNPC’s statutory remittances remain a major source of government revenue, supporting fiscal operations amid ongoing efforts to strengthen public finances.
- In March, NNPC said it plans to grow Nigeria’s gas reserves from the current 210 trillion cubic feet to about 600 trillion cubic feet.
The NNPC earlier this year unveiled its Gas Master Plan 2026, targeting 10 billion cubic feet of daily gas production to drive industrialisation and strengthen Nigeria’s energy security.
SOURCE: Nairametrics
