NNPC profit falls to ₦462 billion despite highest oil output in a year
NNPC's profit fell to ₦462 billion in May, down from April, despite recording its highest crude oil production in a year.
Nigeria’s state-owned oil company, NNPC Limited, recorded a profit after tax of ₦462 billion in May 2026, representing a ₦19 billion decline from the ₦481 billion reported in April, despite improvements in crude oil production, natural gas output and pipeline availability. The May profit was 3.95% lower than the previous month’s performance. Revenue also declined significantly during the period. NNPC reported revenue of ₦4.335 trillion in May, down by about ₦635 billion from the ₦4.97 trillion recorded in April.
Although production improved during the month, the company continued to grapple with operational challenges, including declining reservoir pressure, underperforming oil wells, lifting constraints and maintenance activities across several upstream assets.
Combined crude oil and condensate production rose to 1.73 million barrels per day (mbpd) in May, the highest monthly output the company has recorded in the past 12 months. Crude oil production increased to 1.47 mbpd, while condensate production remained steady at 0.25 mbpd. The increase marks a gradual recovery from production lows recorded late last year, when crude theft, pipeline vandalism, operational downtime and ageing infrastructure weighed heavily on output. Despite the improvement, NNPC said production remained below target due to operational constraints, particularly at TotalEnergies-operated assets, declining reservoir pressure at the Bonga field, lifting-related curtailments affecting Nembe production, and maintenance activities at the Stardeep Agbami field.
Natural gas production maintained its upward trajectory during the month. Average daily gas production rose to 7,774 million standard cubic feet per day (mmscf/d), the highest level recorded during the review period. Gas production fell to 6,284 mmscf/d in September 2025 before steadily recovering in subsequent months, reflecting the country’s increasing emphasis on gas as a transition fuel and a key source of export earnings. Gas sales, however, eased slightly to 4,921 mmscf/d, compared with 5,044 mmscf/d in April and 5,059 mmscf/d in March.
Pipeline operations showed mixed performance across NNPC’s downstream operations. Premium Motor Spirit (PMS) availability at NNPC Retail Limited (NRL) stations stood at 57%, indicating that fuel supply across the company’s retail outlets remained below optimal levels.
The winners: NNPC’s shareholders, who still collected ₦462 billion in profit. The losers: Nigerian consumers, who continue to pay high petrol prices while the state oil company’s retail stations are only 57% stocked.
Bottom Line: NNPC produced more oil and made less money. That is not a puzzle. That is a pattern.