• Profit goes south to N4.62bn
• Remitted N4.858trn to federation account Jan-May 2026
Nigeria’s state-run energy company, the Nigerian National Petroleum Company Limited (NNPCL), reported a sharp fall in revenue by 13 percent to N4.335 trillion (or $3.13 billion, exchange rate N1,385/$1) in May, down from N4.971 trillion (about $3.63 billion) in the previous month, according to the national oil company’s latest monthly report.
In addition, the NOC also experienced southward profit after tax margin for the same period by N462 billion (or $334.78 million) down from N481 billion (or $354 million) in the previous month.
All these are despite Nigeria maintaining relatively stable crude oil and natural gas production of 1.73 million barrels per day (bpd), consisting of about 1.53 million bpd of crude oil and 170,000 bpd of condensates. The revenue drop highlights the continued financial pressures facing Africa’s top oil producer.
The report summary indicates the revenue fall of N636 billion, representing a decline of nearly 13 percent.
The national oil company explained the weaker financial performance came due to prevailing market conditions, pricing dynamics and operational challenges which weighed on earnings during the month under review.
NNPCL said average crude oil and condensate production stood at 1.73 million barrels per day, while natural gas output reached 7.774 billion standard cubic feet per day (bscf/d).
During the reporting period, the company maintained a 98 percent upstream pipeline availability rate, reflecting continued operational reliability across its production network.
However, despite stable production, NNPCL said several operational issues have continued to affect its performance, limiting production potential. But explained that it is intensifying efforts to address declining reservoir pressure, lifting constraints, maintenance-related shutdowns and facility reliability challenges.
It said, “These measures are expected to reduce production deferments, improve asset availability, and boost overall output”.
According to the report, retail fuel availability at NNPC retail stations averaged 57 percent in May 2026.
The company said, despite the earnings decline, it remains major contributor to government revenue, continued to make significant fiscal contributions to the Nigerian government.
It remitted N4.858 trillion to the federation account between January and May 2026 through statutory payments, reinforcing its role as one of the country’s largest sources of public revenue.
NNPCL said substantial progress has been made on two of Nigeria’s flagship gas infrastructure projects aimed at improving domestic gas supply and strengthen energy security.
The Ajaokuta–Kaduna–Kano (AKK) gas pipeline has reached 94 percent completion, with construction, installation and pre-commissioning activities progressing toward the commencement of gas supply to Abuja later this year.
The OB3 River Niger crossing pipeline is 97 percent complete, with post-pullback pre-commissioning and tie-in activities underway. The pipeline section is expected to be fully commissioned before the end of the third quarter of 2026.
“Both projects form a key part of the Federal Government’s Decade of Gas initiative, which seeks to leverage Nigeria’s vast natural gas reserves to boost industrial development, expand domestic energy supply and reduce reliance on crude oil exports,” the company said.
Beyond its energy operations, NNPCL said it engaged in a healthcare intervention through the NNPC Foundation. The foundation commissioned a 1.5 Tesla Magnetic Resonance Imaging (MRI) system at the Nnamdi Azikiwe University Teaching Hospital in Nnewi, Anambra State, alongside supporting power infrastructure, including chillers, an uninterruptible power supply system and backup facilities.
More than 40 patients received free MRI scans during a training programme for radiologists and radiographers before the equipment became operational. The facility is expected to improve access to advanced diagnostic services in southeastern Nigeria by reducing patient referrals outside the region and supporting earlier disease detection, the national oil company explained.
NNPC said all the financial and operational figures contained in the May 2026 report were provisional and are subject to reconciliation with relevant stakeholders.
