NNPC Posts N385bn Profit as Oil Output Rises
Nigeria’s national oil company, the Nigerian National Petroleum Company Limited, has reported a profit after tax of N385bn for January 2026, signalling improved operational performance as crude oil production and gas output recorded moderate growth during the period.
The company disclosed this in its latest monthly operational report, which showed that the state-owned energy firm generated N2.571tn in revenue in January 2026, while remitting N726bn as statutory payments to the federation.
However, despite the profit recorded, the report revealed that monthly revenue declined sharply compared to the previous month, highlighting persistent volatility in Nigeria’s oil earnings.
NNPC Profit as Oil Output Rises Amid Revenue Drop
The NNPC profit as oil output rises reflects a mixed performance in the country’s energy sector, where production recovery helped strengthen profitability despite a significant drop in revenue.
According to the report, crude oil and condensate production increased to 1.64 million barrels per day in January, up from 1.55 million barrels per day recorded in December 2025.
This represents a month-on-month increase of about 0.09 million barrels per day, equivalent to roughly 5.8 per cent growth in output.
The production increase followed the completion of critical maintenance activities at several offshore assets, including the Agbami oil field, one of Nigeria’s largest deep-water production facilities.
The company noted that the improved production performance was driven largely by the completion of turnaround maintenance operations at the Agbami field and other upstream facilities, which helped restore production capacity that had previously been constrained.
Despite this recovery in output, NNPC’s revenue declined significantly from N4.82tn recorded in December 2025 to N2.57tn in January 2026, representing a 47 per cent drop month-on-month.
Industry analysts say fluctuations in export volumes, shipment schedules and operational disruptions may have contributed to the lower revenue figures despite improved production levels.
Gas Production Also Records Strong Rebound
Beyond crude oil output, the report also highlighted an improvement in natural gas production.
NNPC disclosed that gas production rose to 7,283 million standard cubic feet per day in January, compared to 6,914 million standard cubic feet per day recorded in December 2025.
This represents an increase of about 369 million standard cubic feet per day, equivalent to 5.3 per cent growth month-on-month.
Gas production had experienced fluctuations throughout 2025, with output reaching a high of 7,722 million standard cubic feet per day in July before declining in subsequent months due to supply disruptions and operational challenges.
The rebound in January suggests renewed stability in upstream operations as infrastructure upgrades and improved field management begin to take effect.
The report further indicated that gas sales also strengthened during the period, with the company delivering about 4,978 million standard cubic feet per day to domestic and export markets.
Energy experts say increased gas supply could help support electricity generation and industrial activities across the country, given Nigeria’s growing reliance on gas-fired power plants.
Crude Sales Improve Despite Operational Challenges
The company also recorded higher crude oil sales during the month.
According to the report, combined crude oil and condensate sales reached 24.75 million barrels in January, compared to 22.79 million barrels in December.
Monthly sales volumes have fluctuated over the past year due to security challenges, logistics constraints and export terminal operations.
During 2025, crude sales ranged between 17.81 million barrels in September and about 26.71 million barrels in October, reflecting the impact of disruptions across Nigeria’s oil production corridors.
Despite the improvement in production and sales volumes, the company acknowledged that operational difficulties continued to affect crude delivery schedules.
These challenges included adverse weather conditions, evacuation constraints and asset integrity issues across some production corridors.
Petrol Availability Remains Limited
While upstream operations improved, the report revealed that petrol availability at NNPC retail stations remained relatively low during the period.
According to the company, the petrol availability rate stood at 54 per cent in January, based on the “wetness” indicator used to measure the percentage of stations with fuel available for sale at any given time.
The indicator showed variations in product availability across different states, reflecting ongoing adjustments in Nigeria’s deregulated downstream petroleum market.
Market reforms in recent years have reshaped the sector following the removal of petrol subsidies and the emergence of new domestic refining capacity.
Major Gas Infrastructure Projects Near Completion
The report also highlighted significant progress on major gas pipeline projects designed to strengthen Nigeria’s energy infrastructure.
NNPC disclosed that the Ajaokuta–Kaduna–Kano gas pipeline project, commonly known as the AKK pipeline, has reached 92 per cent completion, with pre-commissioning activities already underway.
The pipeline is expected to transport natural gas from the southern region to industrial hubs in northern Nigeria, helping expand gas utilisation across the country.
Similarly, the Obiafu–Obrikom–Oben gas pipeline, also known as the OB3 pipeline, has reached 96 per cent completion, with work progressing on the challenging Niger River crossing segment.
Once completed, the project is expected to improve gas supply reliability to power plants and industrial users.
Production Stability Remains Critical
Nigeria’s oil output has been closely monitored by policymakers and global energy markets, particularly as the country seeks to maintain production above 1.5 million barrels per day.
In recent years, Nigeria has struggled to meet its production targets due to oil theft, pipeline vandalism, ageing infrastructure and underinvestment in upstream operations.
However, recent improvements in pipeline surveillance, asset maintenance and infrastructure upgrades appear to be gradually stabilising production levels.
Energy analysts say sustaining the NNPC profit as oil output rises trend will depend largely on continued security improvements, increased upstream investment and stronger infrastructure reliability across the oil and gas sector.
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