Revenue Boom, Profit Slump: NNPC Posts ₦2.68 Trillion Amid 64% Drop In Earnings

Despite the increase in revenue, profit after tax fell sharply by 64.67% to ₦136 billion, down from ₦385 billion in the previous month, highlighting rising operational and fiscal pressures.

According to the company’s February monthly financial report released on Saturday, the growth in earnings was overshadowed by a significant drop in profitability.

The decline in profit was mainly linked to higher statutory remittances to the Federal Government, following a presidential directive that eliminated the 30% profit retention policy in the oil and gas sector.

Consequently, NNPC’s remittances surged by 148.48%, jumping from ₦726 billion in January to ₦1.804 trillion in February.

The report emphasized the company’s continued importance to government revenue, especially amid ongoing economic challenges.

Crude production falls to 1.51mbpd

Crude oil and condensate output declined to 1.51 million barrels per day in February, down from 1.64 million barrels per day in January, reflecting persistent upstream challenges.

Breakdown figures showed crude oil production at 1.27mbpd and condensates at 0.24mbpd.

NNPC attributed the drop to operational disruptions across key facilities, including the Trans Forcados Pipeline outage due to integrity issues, startup challenges at Agbami after maintenance, delays at the Sterling Oguali flow station, and production constraints at Enyie wells linked to sludge management.

Despite the decline in oil output, gas production performed strongly, rising to 7,458 million standard cubic feet per day—among the highest levels in recent months.

However, gas sales stood at 4,893mmscf/d on a two-month lag basis, slightly below earlier peak levels.

Total crude oil and condensate sales also dropped to 23.08 million barrels in February, compared to 28.64 million barrels in October 2025, reflecting production and evacuation constraints.

Fuel availability declines

In the downstream sector, Premium Motor Spirit availability at NNPC Retail stations fell to 58%, raising concerns over distribution efficiency and potential supply shortages in some areas.

The company also reported progress on key gas infrastructure projects aimed at boosting domestic supply and energy security.

The Ajaokuta-Kaduna-Kano pipeline is now 93% complete, while the Obiafu-Obrikom-Oben pipeline has reached 96% completion, with ongoing drilling and stakeholder collaboration.

NNPC reaffirmed its commitment to restoring production through improved efficiency, faster resolution of evacuation challenges, and stronger infrastructure reliability.

Upstream pipeline availability stood at 93%, indicating relative stability despite intermittent disruptions.

Nigeria continues to struggle with crude production targets due to pipeline vandalism, oil theft, ageing infrastructure, and delayed upstream investment, with the Trans Forcados Pipeline remaining a major point of vulnerability.

Despite these challenges, the report noted that strong revenue and remittance levels highlight NNPC’s crucial role in sustaining government finances amid economic pressure.

All figures remain provisional and subject to reconciliation with stakeholders as efforts continue to stabilize output and improve performance across the sector.