The Nigerian National Petroleum Company Limited reported a profit after tax of N385bn in January 2026, even as Nigeria’s crude oil and condensate production rose to 1.64 million barrels per day.
According to the company’s latest monthly operational report released on Monday, the state-owned energy firm generated N2.571tn in revenue during the month while remitting N726bn as statutory payments to the federation.
Despite the positive profit performance, the report showed that the company’s monthly revenue dropped sharply by about 47 per cent. Revenue declined from N4.82tn recorded in December 2025 to N2.57tn in January 2026.
The report attributed the increase in oil production to the completion of maintenance work at major offshore assets, particularly the Agbami Oil Field, as well as improved operational efficiency across other upstream facilities.
Nigeria’s crude output rose to 1.64 million barrels per day in January, up from 1.55 million barrels per day recorded in December 2025. This represents an increase of 0.09mbpd, or about 5.8 per cent month-on-month.
The improvement marks a partial recovery from the production slowdown experienced in the last quarter of 2025, when output dropped to around 1.54mbpd in October before slightly improving in December.
According to the report, “Production increased month-on-month following the completion of Turn Around Maintenance at Agbami and Renaissance (Estuary Area – EA).”
However, the company noted that operational challenges continued to affect crude delivery volumes.
“Despite the improved production profile, planned deliveries for January were reduced due to adverse weather conditions, evacuation constraints, and asset integrity challenges across some production corridors,” the report stated.
Natural gas production also increased during the period, rising to 7,283 million standard cubic feet per day from 6,914 mmscf/d recorded in December 2025. This represents a 5.3 per cent month-on-month increase.
Gas production had fluctuated throughout 2025, reaching a peak of about 7,722 mmscf/d in July before declining later in the year due to operational and supply disruptions.
Gas sales also strengthened during the period, with the report indicating that the company sold about 4,978 mmscf/d of gas, representing one of the highest levels recorded within the past year.
On the sales front, the report showed that combined crude oil and condensate sales increased to 24.75 million barrels in January, compared with 22.79 million barrels recorded in December 2025.
Nigeria’s crude production has remained a key focus for the government and global energy markets, particularly as the country works to stabilise output above 1.5 million barrels per day after years of losses caused by oil theft, pipeline vandalism, and underinvestment.
Despite the improvement in upstream operations, the report indicated that petrol availability across stations operated by NNPC Retail Limited stood at 54 per cent in January.
The company’s “wetness” indicator measures the percentage of filling stations nationwide with petrol available for sale at any given time. The report showed varying supply levels across different states.
Meanwhile, the report highlighted progress on major gas infrastructure projects aimed at strengthening Nigeria’s gas transportation network.
The Ajaokuta–Kaduna–Kano Gas Pipeline Project has reached 92 per cent completion, with pre-commissioning activities currently underway across the main pipeline infrastructure.
Similarly, the Obiafu–Obrikom–Oben Gas Pipeline Project, widely known as the OB3 pipeline, has achieved 96 per cent completion, with drilling work at the Niger River crossing progressing according to schedule.
NNPC noted that the project is expected to significantly improve gas supply reliability to power plants and industries once completed.
The report further revealed that upstream pipeline availability improved to 96 per cent, reflecting ongoing efforts to strengthen asset reliability and reduce disruptions caused by vandalism and technical faults.
Nigeria, Africa’s largest oil producer and a member of the Organization of the Petroleum Exporting Countries, has struggled in recent years to meet its production targets due to crude theft, ageing infrastructure, and operational challenges.
However, the latest report suggests that intensified security measures, improved maintenance, and increased investments in gas infrastructure may be helping to stabilise production levels.
