NNPC revenue drops 13% to ₦4.335 trillion despite stable output

NNPC’s revenue fell 13% to ₦4.335 trillion in May, while profit declined to ₦462 billion despite stable oil and gas production.

The Nigerian National Petroleum Company Limited recorded a 13% decline in revenue to ₦4.335 trillion in May 2026, down from ₦4.971 trillion in April, despite maintaining stable oil and gas production. Its monthly report also showed profit after tax fell to ₦462 billion from ₦481 billion.

Crude oil and condensate production stood at 1.73 million barrels per day, while gas output was 7,774 million standard cubic feet daily. NNPC attributed the weaker performance to operational challenges but said it is addressing production constraints. It added that the AKK gas pipeline is 94% complete, while the OB3 project has reached 97% completion.

The revenue decline despite stable production suggests that NNPC is capturing less value from each barrel of oil produced. This could reflect lower crude prices, higher operating costs, or a combination of both. The company’s profit margin also narrowed, with profit after tax falling from ₦481 billion to ₦462 billion.

This mirrors the 2015-2016 oil price crash, when NNPC’s revenues collapsed despite stable production because international prices fell. The difference now is that domestic refining capacity is coming online, which could change the company’s revenue profile in the medium term. The AKK and OB3 gas pipelines, both nearing completion, could also open new revenue streams.

The winners: NNPC’s shareholders, who still collected ₦462 billion in profit. The losers: the Federal Government, which relies on NNPC for revenue, and Nigerian consumers, who continue to pay high petrol prices while the company’s production remains stable but its profits shrink.

Bottom Line: NNPC produced more oil and made less money. That is not a puzzle. That is a pattern.