NNPC posts N136bn profit as gas production rises in February

Nigeria’s crude oil production recorded a decline in February 2026, despite a steady rise in gas output and strong financial performance posted within this period.

This is the highlight of the Nigerian National Petroleum Company Limited (NNPCL)’s latest monthly report published on Saturday.

The report indicated that crude oil and condensate production fell to 1.51 million barrels per day (mbpd) in February, as against 1.64 mbpd recorded in January, continuing a fluctuating trend observed over the past year.

This fluctuation represents a notable drop from January levels and highlights ongoing volatility in Nigeria’s upstream sector.

A review of the graphical presentation of the production data posted, shows that output peaked at about 1.70 mbpd around mid-2025 before gradually declining towards early 2026.

The February figure of 1.51 mbpd reflects persistent challenges such as pipeline constraints and operational disruptions, despite efforts to stabilise output.

Upstream pipeline availability stood at 93 per cent, suggesting relative stability in infrastructure, although not sufficient to prevent the dip in production.

Meanwhile, On Wednesday, NNPC Chief Executive Officer, Bashir Ojulari, said the country‘s crude oil production has increased significantly from historic lows recorded in 2022, amid improved pipeline security and efforts to curb oil theft.

He attributed the growth to the implementation of an integrated energy security framework designed to protect oil infrastructure in the Niger Delta.

In contrast to the decline in crude oil production observed in February, the report indicated that the country’s gas production recorded a notable increase, rising to 7,458 million standard cubic feet per day (mmscfd) in February.

This marks one of the highest levels recorded within the review period, reinforcing the growing importance of gas as a stabilising component of Nigeria’s energy mix.

Gas sales also remained strong at 4,893 mmscfd, reflecting sustained demand and improved delivery capacity.

The upward trajectory in gas output aligns with Nigeria’s broader strategy to deepen gas utilisation as a transition fuel and revenue source.

In January, NNPC unveiled its Gas Master Plan (GMP) 2026, aimed at driving industrialisation and strengthening the nation’s energy security.

The Plan is an offshoot of the Nigerian Gas Master Plan 2008, a strategic framework designed to maximise economic benefits from Nigeria’s abundant gas resources.

A key feature of the GMP 2026 is its full alignment with the Nigerian Decade of Gas Programme.

It is expected to serve as the definitive framework for coordinated gas sector development, execution discipline and value creation over the next decade.

Financially, the national oil company posted a revenue of N2.68 trillion for February, underscoring its continued role as a major contributor to government earnings.

Profit after tax stood at N136 billion, indicating operational profitability despite production headwinds in the oil segment.

Statutory payments to the government totalled N1.804 trillion, further highlighting the company’s fiscal significance.

The report also reveals mixed outcomes in downstream operations.

Petrol (PMS) availability at NNPC retail stations stood at 58 per cent, suggesting ongoing supply or distribution challenges in the domestic market.

However, strategic pipeline infrastructure recorded strong performance, with the Obiafu-Obrikom-Oben (OB3) pipeline at 96 per cent availability and the Ajaokuta-Kaduna-Kano (AKK) pipeline at 93 per cent.

These figures point to progress in key gas infrastructure projects critical to long-term energy security.

Crude oil and condensate sales showed variability over the months, with February sales recorded at 23.08 million barrels.

While this represents a moderate performance, it falls below peak levels seen in late 2025, reflecting the impact of declining production volumes.

Gas sales, however, remained resilient, mirroring the production gains recorded during the period.

In a short note reflected on the sidelines of the report, the NNPC said it is focusing on strengthening production resilience through improved asset reliability, faster resolution of operational issues, and enhanced collaboration with industry stakeholders.

The company also highlighted ongoing progress on major gas infrastructure projects, particularly the AKK pipeline aimed at boosting domestic gas supply, and continued work on the OB3 pipeline.

The February report paints a mixed but instructive picture of Nigeria’s energy sector.

While oil production continues to face headwinds, gas is emerging as a bright spot, supporting revenue growth and energy transition goals.

The strong financial performance suggests that improved efficiency and diversification efforts are yielding results, even as structural challenges in crude production persist.

Referring to the trends of the recent data, some experts have argued that Nigeria’s immediate energy future may depend less on oil recovery and more on how effectively the government harnesses its vast gas resources.

In recent months, the government has increasingly wooed investors to scale investment in the oil and gas sector, with the likes of Shell and Exxon Mobil among others, announcing plans to invest heavily in the country due to perceived confidence in the government policy trajectory.