Crude oil and condensate production in Nigeria fell to an average of 1.51 million barrels per day in February 2026, despite the Nigerian National Petroleum Company Limited (NNPC Ltd) remitting N1.804 trillion to the Federation Account. The decline was attributed to multiple operational challenges, including the Trans Forcados Pipeline outage due to integrity issues, startup difficulties at Stardeep Agbami GTC 2 and 3 following maintenance, delays at the Sterling Oguali flow station, and sludge management constraints at Enyie wells.
The NNPC’s February Monthly Report Summary, released on Saturday, noted that while production dipped, financial performance improved. Total revenue rose to N2.68 trillion from N2.57 trillion in January, though Profit After Tax declined to N136 billion from N385 billion over the same period. The report emphasised ongoing stabilisation efforts, including improved asset reliability, faster evacuation resolutions, and progress on the Ajaokuta-Kaduna-Kano (AKK) gas pipeline, which aims to deliver early gas to Abuja.
The AKK project is seen as a key factor supporting future production recovery, alongside increased collaboration with operators and stakeholders. The NNPC highlighted improvements across key financial and operational indicators, noting that statutory remittances surged to N1.804 trillion, up from N726 billion in January.
These developments follow President Bola Tinubu’s February 2026 Executive Order, which overhauled revenue remittance practices in the oil and gas sector. The directive suspended the collection of management and frontier exploration fees by NNPC Ltd and mandated the full remittance of oil and gas revenues to the Federation Account. An inter-agency implementation committee, chaired by the Minister of Finance and Coordinating Minister for the Economy, was established to ensure seamless execution.
The reforms are part of broader efforts to align revenue flows with constitutional provisions and enhance transparency and accountability in Nigeria’s oil and gas sector.
