The Nigerian National Petroleum Company Limited posted weaker financial results in May 2026, with revenue falling nearly 13 per cent to N4.335tn despite steady crude oil and natural gas production.
According to its latest Monthly Report Summary released on Wednesday, the national oil company generated N4.335tn in revenue during the month, down by N636bn from the N4.971tn recorded in April. Profit after tax also declined to N462bn from N481bn in the previous month.
Although production remained relatively stable, the figures suggest that market conditions and operational challenges continued to weigh on the company’s earnings in May.
NNPC reported average crude oil and condensate production of 1.73 million barrels per day during the month, while natural gas output stood at 7,774 million standard cubic feet per day.
The report further showed that upstream pipeline availability remained strong at 98 per cent, while the availability of Premium Motor Spirit (petrol) at NNPC Retail Limited stations was 57 per cent. The company said it continued to intensify efforts to address operational bottlenecks affecting production.
It stated, “The company is intensifying efforts to address performance issues, declining reservoir pressure, lifting constraints, maintenance-related shutdowns, and facility reliability challenges. These measures are expected to reduce production deferments, improve asset availability, and boost overall output.”
The report also showed that NNPC remitted N4.858tn in statutory payments to the Federation between January and May 2026, reinforcing its position as one of Nigeria’s largest contributors to government revenue.
On strategic gas infrastructure, NNPC said it recorded significant progress on two key projects aimed at expanding domestic gas supply and supporting industrialisation across the country.
According to the report, the Ajaokuta–Kaduna–Kano Gas Pipeline project has reached 94 per cent completion, with construction, installation and pre-commissioning activities progressing steadily.
NNPC said the pipeline remains on track to begin supplying gas to Abuja later this year. It also disclosed that the OB3 River Niger Crossing project has achieved 97 per cent completion, bringing it closer to full operation.
The company stated, “Post-pullback pre-commissioning and tie-in activities are progressing towards the target of fully commissioning the pipeline section by the end of the third quarter of 2026.”
The report said NNPC remained focused on improving operational efficiency, enhancing production reliability, and advancing strategic initiatives across its business operations.
The company, however, noted that all operational and financial figures contained in the report are provisional and remain subject to reconciliation with relevant stakeholders.
