NNPC revenue and statutory payments dropped sharply in January 2026 despite modest gains in oil and gas production and higher profit after tax

The Nigerian National Petroleum Company (NNPC) Limited has reported a sharp decline in revenue and statutory payments to the federal government for January 2026, even as crude oil and gas production registered modest increases.

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The company’s Monthly Report Summary for January, published on Monday, shows statutory payments fell to ₦726 billion, a 42.8 percent drop from the ₦1.27 trillion recorded in December 2025.

Revenue also declined to ₦2.57 trillion, down 46.7 percent from December’s ₦4.82 trillion.

Despite the decline in revenue, profit after tax (PAT) rose 9.7 percent to ₦385 billion in January from ₦351 billion in December 2025, signalling operational efficiency gains.

On production, NNPC recorded improvements in both oil and gas output. Natural gas production increased to 7.28 million standard cubic feet per day (mscfd) from 6.19 mscfd, while gas sales rose to 4.97 million standard cubic feet per day (mmscf/d).

Crude oil and condensates production reached 1.64 million barrels per day (bpd), compared with 1.55 million bpd in December.

The company attributed production gains to the completion of Turn Around Maintenance (TAM) at the Agbami and Renaissance (Estuary Area – EA) facilities.

The report also noted that planned deliveries were affected by adverse weather, evacuation challenges, and asset integrity issues.

On infrastructure, NNPC highlighted progress on major gas projects.

Pre-commissioning activities continued along the Ajaokuta-Kaduna-Kano (AKK) gas pipeline, with construction of block valve stations (BVS) and intermediate pigging stations (IPS) ongoing.

Drilling at the Obiafu-Obrikom-Oben (OB3) river Niger crossing also proceeded as scheduled.

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The January report underscores the challenges facing NNPC in balancing financial performance with production growth, as the company navigates operational constraints, infrastructure development, and environmental hurdles.