National oil company reports 15.8% rise in monthly profit as gas production grows and strategic pipeline projects near completion amid ongoing challenges in crude oil production.
By Angela Udende
Abuja, Nigeria — August 2, 2026
The Nigerian National Petroleum Company (NNPC) Limited has reported a Profit After Tax (PAT) of ₦535 billion for June 2026, marking a 15.8 per cent increase from the ₦462 billion recorded in May, despite a marginal decline in the country’s crude oil and condensate production.
The latest figures, contained in the company’s June 2026 Monthly Financial and Operations Report, also reveal that the state-owned energy giant generated ₦4.389 trillion in revenue during the month and remitted a cumulative ₦6.286 trillion to the Federation Account between January and June 2026.
The financial performance comes at a time when Nigeria continues efforts to stabilise crude oil production, expand domestic gas infrastructure and increase government revenue amid fiscal pressures and global energy market uncertainties.
While the figures suggest improving operational efficiency and stronger earnings, industry experts say the sustainability of the gains will depend on addressing persistent production disruptions, oil theft and infrastructure challenges.
NNPC Records Strong Profit Growth
According to the June financial report, NNPC’s ₦535 billion profit after tax represents one of the company’s strongest monthly performances in 2026.
The increase from May’s ₦462 billion indicates improved financial performance despite headwinds affecting crude oil production.
The company also reported total monthly revenue of ₦4.389 trillion, highlighting continued strength in its upstream, midstream and commercial operations.
The report underscores NNPC’s growing importance as one of Nigeria’s largest contributors to public revenue under its commercial operating model introduced by the Petroleum Industry Act (PIA).
Federation Account Receives ₦6.286 Trillion in Six Months
One of the report’s most significant highlights is the company’s contribution to government finances.
Between January and June 2026, NNPC remitted ₦6.286 trillion to the Federation Account through statutory payments.
These remittances remain a critical source of funding for the Federal Government, state governments and local government councils, particularly as Nigeria faces increasing expenditure on infrastructure, security, healthcare and education.
Economic analysts note that consistent remittances from the oil sector remain essential to supporting fiscal stability and financing public services.
Crude Oil Production Declines Slightly
Despite stronger financial results, NNPC reported a slight decline in crude oil and condensate production.
Average daily production fell to 1.72 million barrels per day (mmbopd) in June from 1.73 million barrels per day recorded in May.
Although the decline appears marginal, it highlights the operational difficulties that continue to affect Nigeria’s oil industry.
According to NNPC, production was impacted by:
- Operational disruptions.
- Facility integrity challenges.
- Subsurface technical issues affecting producing assets.
Industry observers also continue to identify pipeline vandalism, crude oil theft and ageing infrastructure as broader risks confronting Nigeria’s upstream petroleum sector.
Natural Gas Production Continues Upward Trend
In contrast to crude oil production, Nigeria’s natural gas output continued to improve.
The report shows gas production increased from 7.774 million standard cubic feet per day in May to 7.841 million standard cubic feet per day in June, representing a 0.86 per cent increase.
The improvement aligns with Nigeria’s strategy of expanding domestic gas utilisation under the Federal Government’s “Decade of Gas” initiative.
Experts believe increased gas production could strengthen electricity generation, industrial manufacturing and export opportunities while supporting the country’s energy transition objectives.
OB3 Gas Pipeline Nears Completion
NNPC also reported substantial progress on one of Nigeria’s most strategic gas infrastructure projects—the Obiafu-Obrikom-Oben (OB3) Gas Pipeline.
According to the report:
- Construction has reached 98 per cent completion.
- Final tie-in works are currently underway.
- First Gas delivery is expected in August 2026.
The OB3 pipeline is designed to improve gas transportation across the country, linking major gas-producing areas with domestic markets and industrial users.
Energy analysts believe the project could significantly enhance gas supply reliability and reduce infrastructure bottlenecks.
AKK Pipeline Advances Towards Abuja Gas Delivery
The report also highlighted continued progress on the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline, another flagship national infrastructure project.
NNPC disclosed that:
- Construction has reached 94 per cent completion.
- The project remains on schedule.
- Early gas delivery to Abuja is expected before the end of 2026.
The AKK pipeline forms part of Nigeria’s long-term strategy to expand access to cleaner energy, stimulate industrialisation and attract manufacturing investments across northern Nigeria.
Government officials believe the project will help reduce dependence on imported industrial fuels while creating employment opportunities.
Gas Infrastructure Seen as Key to Economic Growth
According to NNPC, the near-completion of both the OB3 and AKK pipelines represents a major milestone in Nigeria’s energy development agenda.
The company believes the projects will:
- Improve domestic gas supply.
- Enhance national energy security.
- Support industrial development.
- Boost power generation.
- Encourage private sector investment.
- Accelerate economic growth.
Energy economists argue that successful completion of the projects could help diversify Nigeria’s economy away from excessive dependence on crude oil exports.
Analysts Urge Sustained Reforms
Despite the encouraging financial performance, analysts caution that Nigeria’s petroleum industry continues to face structural challenges.
These include:
- Oil theft and pipeline vandalism.
- Ageing production infrastructure.
- Security concerns in producing regions.
- Fluctuating international oil prices.
- High production costs.
- Regulatory uncertainties.
They argue that sustaining profitability will require continued investment in infrastructure, improved operational efficiency, stronger security around oil facilities and consistent implementation of reforms under the Petroleum Industry Act.
NNPC’s June 2026 financial report reflects a company recording stronger profits and increasing contributions to national revenue, even as crude oil production remains under pressure.
With ₦535 billion in monthly profit, ₦6.286 trillion remitted to the Federation Account and major gas infrastructure projects nearing completion, the national oil company appears to be making progress toward its commercial and strategic objectives.
However, the slight decline in crude oil output underscores the need for sustained efforts to tackle operational disruptions and strengthen production capacity if Nigeria is to maximise the full potential of its petroleum resources.
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