The Nigerian National Petroleum Company Limited recorded a profit after tax of N385bn in January 2026, even as crude oil and condensate production rose to 1.64 million barrels per day, according to the firm’s latest monthly operational report.

The January 2026 NNPC Monthly Report Summary, released on Monday, showed that the state-owned energy company generated N2.571tn in revenue during the month while remitting N726bn as statutory payments to the Federation.

This means the company recorded a sharp 47 per cent decline in its monthly revenue, which fell from N4.82tn in December 2025 to N2.57tn in January 2026. This contraction came despite a marginal increase in the company’s profit after tax.

The report indicated that production recovery during the month was driven largely by the completion of maintenance work at key offshore assets, particularly the Agbami field, as well as operational improvements in other upstream facilities.

It disclosed that Nigeria produced 1.64 million barrels per day, up from 1.55 million barrels per day recorded in December 2025. This represents an increase of 0.09mbpd, or about 5.8 per cent month-on-month.

The development indicates a partial recovery from the production slowdown recorded in the last quarter of 2025, when output had slipped to around 1.54mbpd in October and 1.55mbpd in December.

According to the report, “Production increased month-on-month following the completion of Turn Around Maintenance at Agbami and Renaissance (Estuary Area – EA).”

However, the company noted that operational challenges still affected crude delivery volumes.

It stated, “Despite the improved production profile, planned deliveries for January were reduced due to adverse weather conditions, evacuation constraints, and asset integrity challenges across some production corridors.”

The report also showed that natural gas production rose to 7,283 million standard cubic feet per day, representing a rebound from 6,914 mmscf/d recorded in December 2025.

Gas production had fluctuated throughout 2025, reaching a high of about 7,722 mmscf/d in July before declining later in the year due to operational and supply disruptions. This translates to an increase of 369mmscf/d, representing a 5.3 per cent rise month-on-month.

The rebound suggests stronger upstream performance after several months of fluctuations in 2025, when gas production fell sharply to 6,284mmscf/d in September before gradually recovering towards the end of the year.

Despite these fluctuations, gas production in January reflected renewed output stability as infrastructure upgrades and upstream operations improved. Gas sales also strengthened during the period, with the report indicating that the company sold about 4,978 mmscf/d of gas, one of the highest levels recorded within the past year.

The increase of 224mmscf/d represents growth of about 4.7 per cent month-on-month. This suggests improved gas delivery to power plants, industrial users, and export channels.

On the sales front, the January report recorded 24.75 million barrels of combined crude and condensate sales, compared with 22.79 million barrels in December 2025.

Monthly crude sales ranged between roughly 17.81 million barrels in September 2025 and about 26.71 million barrels in October, reflecting periodic disruptions linked to logistics, security concerns, and export terminal operations. The report noted that improved production from offshore assets contributed to the higher January sales figures.

Nigeria’s crude output has been closely watched by the government and global markets, particularly as the country seeks to stabilise production above 1.5 million barrels per day after years of losses caused by oil theft, pipeline vandalism and underinvestment.

Despite the improvement in upstream operations, the report showed that petrol availability across NNPC Retail Limited stations stood at only 54 per cent in January.

The “wetness” indicator used by the company reflects the percentage of stations nationwide that have petrol available for sale at any given time. While several states recorded moderate supply levels, the map contained in the report showed variations in product availability across the country.

The development comes amid continued adjustments in Nigeria’s downstream petroleum market following the deregulation of petrol pricing and increased supply from domestic refineries. The report also highlighted major progress on strategic gas infrastructure projects designed to boost Nigeria’s gas transportation capacity.

According to NNPC, work on the Ajaokuta–Kaduna–Kano gas pipeline project has reached 92 per cent completion, with pre-commissioning activities continuing on the mainline infrastructure.

The company said, “Pre-commissioning activities on the AKK pipeline progressed significantly with major milestones achieved across the mainline, block valve stations, and intermediate pigging stations.”

The AKK pipeline is a key component of Nigeria’s gas expansion programme and is expected to transport natural gas from the southern region to industrial hubs in northern Nigeria.

Similarly, the Obiafu–Obrikom–Oben gas pipeline project, widely known as the OB3 pipeline, has reached 96 per cent completion, with drilling activities at the Niger River crossing progressing according to schedule.

NNPC noted that the pipeline project will help improve gas supply reliability to power plants and industries across the country once completed. The report further indicated that upstream pipeline availability improved to 96 per cent, reflecting ongoing efforts by the company to enhance asset reliability and reduce disruptions caused by vandalism and technical faults.

Pipeline integrity has remained a major concern in Nigeria’s oil industry, with theft and sabotage historically responsible for significant production losses. However, the improved availability suggests that recent security and monitoring measures implemented by operators and government agencies may be yielding results.

Nigeria, Africa’s largest oil producer, has struggled in recent years to meet its production targets under the Organization of the Petroleum Exporting Countries quota system due to widespread crude theft, ageing infrastructure, and operational challenges.

Government authorities and industry operators have since intensified efforts to restore output, including enhanced surveillance of pipelines, improved asset maintenance, and accelerated investments in gas infrastructure.

The latest NNPC report suggests that these efforts may be beginning to stabilise production levels. However, analysts say sustaining output above 1.6 million barrels per day will depend on continued security improvements, infrastructure upgrades, and increased upstream investment.