NNPC Revenue Drops N636bn in May Despite Steady Oil Production
By Aboki Forex —
The Nigerian National Petroleum Company Limited recorded a sharp decline in revenue for May 2026, falling by nearly 13 percent to N4.335tn. This happened even though the company maintained stable crude oil and natural gas production levels.
NNPC disclosed this in its latest Monthly Report Summary released on Wednesday. Revenue dropped by N636bn from the N4.971tn recorded in April. Profit after tax also fell to N462bn from N481bn in the previous month.
The figures show that market conditions and operational challenges weighed on earnings, despite stable output. NNPC produced 1.73 million barrels of crude oil and condensate per day in May. Natural gas production stood at 7,774 million standard cubic feet per day.
Upstream pipeline availability remained high at 98 percent. However, the availability of Premium Motor Spirit at NNPC Retail Limited stations was only 57 percent during the period.
The company said it is intensifying efforts to tackle operational bottlenecks. It cited declining reservoir pressure, lifting constraints, maintenance-related shutdowns, and facility reliability challenges as key issues. These measures are expected to reduce production deferments and improve output.
NNPC made statutory payments of N4.858tn to the Federation between January and May 2026. This highlights its role as one of the country's biggest revenue contributors.
On gas infrastructure, the company reported significant progress on two critical projects. The Ajaokuta-Kaduna-Kano Gas Pipeline has reached 94 percent completion. Construction and pre-commissioning activities are advancing steadily. NNPC said the project is on track to begin delivering gas to Abuja later this year.
The OB3 River Niger Crossing project has reached 97 percent completion. Post-pullback pre-commissioning and tie-in activities are progressing. The company targets full commissioning of the pipeline section by the end of the third quarter of 2026.
NNPC said it remains focused on improving operational efficiency and tackling production challenges.