National oil company records lower earnings despite resilient production, remits ₦4.86 trillion to the Federation and advances strategic gas infrastructure projects as Nigeria pursues energy security.
By Baron Eloagu | July 2, 2026
ABUJA, Nigeria – The Nigerian National Petroleum Company Limited (NNPC Ltd.) has reported a sharp decline in revenue for May 2026, recording earnings of ₦4.335 trillion, down from ₦4.971 trillion in April, despite maintaining relatively stable crude oil and natural gas production.
The latest Monthly Report Summary released by the national oil company on Wednesday shows that revenue fell by approximately 13 per cent, while profit after tax also declined from ₦481 billion in April to ₦462 billion in May.
The report suggests that although production levels remained largely unchanged, persistent operational bottlenecks and prevailing market conditions continued to weigh on the company’s financial performance, underscoring the challenges confronting Nigeria’s petroleum industry as it strives to increase output and maximise government revenue.
Revenue Declines Despite Stable Oil and Gas Production
According to the report, NNPC maintained average crude oil and condensate production at 1.73 million barrels per day throughout May.
Natural gas production also remained stable at 7,774 million standard cubic feet per day (mmscfd), indicating that production volumes were not the primary cause of the decline in earnings.
However, revenue dropped by ₦636 billion within one month, raising fresh concerns about pricing dynamics, operational efficiency and the commercial realities facing Nigeria’s energy sector.
Profit after tax equally declined by ₦19 billion during the same period, reflecting tighter margins despite sustained production activities.
Operational Challenges Continue to Pressure Performance
NNPC acknowledged that several operational constraints continued to affect production efficiency across its upstream operations.
The company identified major challenges including declining reservoir pressure, production performance issues, crude lifting constraints, maintenance-related shutdowns and facility reliability concerns.
According to the report, management has intensified corrective measures aimed at reducing production deferments, improving asset availability and enhancing operational efficiency.
The company expressed optimism that these interventions would strengthen production capacity and improve financial performance in the coming months.
Energy analysts note that while Nigeria has made progress in reducing crude theft and pipeline vandalism, operational inefficiencies and ageing infrastructure continue to limit the sector’s full revenue potential.
Pipeline Reliability Remains Strong
Despite weaker financial performance, NNPC reported encouraging operational indicators.
Upstream pipeline availability remained high at 98 per cent, suggesting improved reliability of critical oil transportation infrastructure.
However, Premium Motor Spirit (PMS) availability across NNPC Retail Limited stations averaged only 57 per cent during the month under review, indicating that retail distribution challenges still persist in parts of the country.
The company said it continues to implement operational reforms aimed at improving supply chain efficiency and product availability nationwide.
₦4.86 Trillion Remitted to Federation in Five Months
One of the report’s significant highlights is NNPC’s contribution to government revenue.
Between January and May 2026, the national oil company remitted ₦4.858 trillion to the Federation Account, reinforcing its position as one of Nigeria’s largest contributors to public finances.
The remittances come at a period when federal and state governments are under increasing pressure to diversify revenue sources while still relying heavily on petroleum income to finance budgets, infrastructure projects and social programmes.
AKK and OB3 Gas Projects Near Completion
NNPC also reported substantial progress on two flagship gas infrastructure projects considered critical to Nigeria’s long-term energy transition strategy.
AKK Pipeline Reaches 94 Per Cent Completion
Construction of the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline has reached 94 per cent completion.
According to the company, installation, construction and pre-commissioning activities are progressing steadily, with the project expected to begin supplying natural gas to Abuja before the end of the year.
The AKK pipeline is a cornerstone of Nigeria’s Decade of Gas initiative and is expected to stimulate industrial development, boost electricity generation and improve domestic gas utilisation across northern Nigeria.
OB3 River Niger Crossing Hits 97 Per Cent
NNPC further disclosed that the OB3 River Niger Crossing Project has attained 97 per cent completion.
The company stated that post-pullback pre-commissioning and tie-in activities are advancing toward full commissioning before the end of the third quarter of 2026.
Industry experts believe both pipeline projects will significantly improve gas transportation infrastructure, strengthen energy security and support Nigeria’s ambition of becoming a gas-powered economy.
NNPC Foundation Expands Healthcare Access
Beyond its petroleum operations, NNPC highlighted a major healthcare intervention undertaken through the NNPC Foundation.
On May 15, the Foundation commissioned and handed over a state-of-the-art 1.5 Tesla Magnetic Resonance Imaging (MRI) system to the Nnamdi Azikiwe University Teaching Hospital in Nnewi, Anambra State.
The donation also included modern chillers, an Uninterruptible Power Supply (UPS) system, battery racks and backup electricity facilities.
According to the company, more than 40 patients had already benefited from free MRI scans under a specialised training programme organised by General Electric for radiologists and radiographers before the equipment was formally commissioned.
NNPC said the facility is already improving access to advanced diagnostic healthcare services across Nigeria’s South-East by reducing referrals to hospitals outside the region and facilitating earlier disease detection.
Transparency Initiative Continues
The company stated that its Monthly Report Summary forms part of its corporate transparency initiative aimed at providing regular public updates on production activities, financial performance, infrastructure development, statutory remittances and corporate social responsibility programmes.
NNPC, however, cautioned that all operational and financial figures contained in the report remain provisional and are subject to reconciliation with relevant stakeholders.
Industry Outlook
The latest financial report comes as the Federal Government intensifies efforts to increase Nigeria’s crude oil production beyond two million barrels per day while accelerating implementation of the Decade of Gas programme.
Industry stakeholders believe improving operational efficiency, reducing production losses, strengthening infrastructure and completing strategic gas projects will be critical to reversing declining revenues and enhancing Nigeria’s competitiveness in the global energy market.
The AKK and OB3 pipelines are expected to play a pivotal role in expanding domestic gas supply, supporting industrialisation, increasing electricity generation and driving long-term economic growth.
Although NNPC maintained stable crude oil and natural gas production in May 2026, the company’s financial results reveal that operational challenges and market realities continue to exert pressure on revenue and profitability.
Nevertheless, sustained statutory remittances to the Federation Account, significant progress on strategic gas infrastructure and continued investments in healthcare demonstrate the company’s broader contribution to Nigeria’s economic development agenda.
As Nigeria pursues higher production targets and deeper gas commercialisation, analysts will be closely watching whether ongoing operational reforms translate into stronger financial performance and greater value for the nation.
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