NNPC revenue dropped by N636bn to N4.34tn in May - Report

The Nigerian National Petroleum Company Limited (NNPC) experienced a significant financial downturn in May 2026, with its revenue falling by nearly 13 percent to N4.335 trillion. This decline occurred despite the company maintaining stable crude oil and natural gas production levels.

According to the NNPC's latest Monthly Report Summary, revenue decreased by N636 billion compared to the N4.971 trillion recorded in April. Profit after tax also saw a reduction, dropping to N462 billion from N481 billion in the preceding month. The report suggests that market conditions and operational challenges were key factors impacting the company's earnings during May.

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The company is intensifying efforts to address performance issues, declining reservoir pressure, lifting constraints, maintenance-related shutdowns and facility reliability challenges. These measures are expected to reduce production deferments, improve asset availability and boost overall output.

Despite these financial headwinds, NNPC reported producing an average of 1.73 million barrels of crude oil and condensate per day in May, with natural gas production at 7,774 million standard cubic feet per day. Upstream pipeline availability remained high at 98 percent, and Premium Motor Spirit availability at NNPC Retail Limited stations was 57 percent. The company stated it is intensifying efforts to address performance issues, including declining reservoir pressure, lifting constraints, and maintenance-related shutdowns.

The report also highlighted progress on strategic gas infrastructure projects. The Ajaokuta-Kaduna-Kano Gas Pipeline has reached 94 percent completion and is expected to begin delivering gas to Abuja later in the year. Additionally, the OB3 River Niger Crossing project is 97 percent complete, with pre-commissioning activities advancing towards full commissioning by the end of the third quarter of 2026. These projects are considered critical for boosting domestic gas supply and supporting industrialization.

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Post-pullback pre-commissioning and tie-in activities are progressing towards the target of fully commissioning the pipeline section by the end of the third quarter of 2026.