The Nigerian National Petroleum Company Limited (NNPC Ltd) reported increased crude oil and natural gas production in January 2026, yet recorded a significant decline in overall revenue despite higher sales volumes, according to its monthly report.
Total hydrocarbon production, including condensates, averaged 1.64 million barrels per day (bpd) in January, up from 1.60 million bpd in December 2025. Crude oil contributed 1.39 million bpd, with condensates adding 250,000 bpd. This represented a 2.5 per cent month-on-month rise, stabilising within the 1.60–1.69 million bpd range observed over the past year. Natural gas output increased to 7,283 million standard cubic feet per day (mmscfd), a 5.3 per cent rise from December’s 6,914 mmscfd.
Oil sales volumes also improved, reaching 24.75 million barrels in January, up 8.6 per cent from December’s 22.79 million barrels. Gas sales rose to 4,978 mmscfd from 4,754 mmscfd, matching a previous peak.
However, total revenue fell sharply to N2.571 trillion in January, a 46.7 per cent drop from N4.82 trillion in December. The decline occurred despite higher sales volumes for both oil and gas, suggesting external factors such as price fluctuations or payment timing impacted earnings. The report did not specify reasons for the revenue fall.
Profit after tax for January was reported at N385 billion, down from N502 billion in November 2025, while statutory payments fell to N726 billion from N1.27 trillion in December. This represented 28.3 per cent of monthly revenue transferred to the federation.
Operational metrics remained strong, with upstream pipeline availability at 96 per cent, supporting stable crude oil evacuation. The Petroleum Management System (PMS) availability at NNPC Retail stations stood at 54 per cent.
The update also highlighted progress on key gas infrastructure. The Obiafu–Obrikom–Oben (OB3) gas pipeline reached 96 per cent completion, particularly at the River Niger crossing, while the Ajaokuta–Kaduna–Kano (AKK) pipeline was 92 per cent complete, with pre-commissioning activities ongoing.
While production stability indicates reduced disruptions from pipeline vandalism and oil theft, the persistent volatility in revenue underscores challenges in translating higher output into sustainable earnings growth for Nigeria’s petroleum sector.
