The Nigerian National Petroleum Company Limited has announced a revenue collection of N2.68 trillion from its economic activities in February 2026, even as crude oil production declined to 1.51 million barrels per day amid pipeline outages and operational setbacks.

The company reported a 4.2 per cent increase in revenue for its February 2026 operations, rising to N2.68tn from N2.57tn recorded in January.

However, the company’s profit after tax plunged by 64.67 per cent to N136bn in February, down from N385bn posted in the previous month.

Details from the company’s February monthly report summary released on Saturday showed that profit after tax stood at N136bn, while statutory payments to the Federal Government rose to N1.804tn, underlining the firm’s continued fiscal importance despite production headwinds.

The sharp decline in profit comes amid increased remittances to the Federation following a presidential directive removing the 30 per cent retention on profit from oil and gas.

As a result, NNPC’s remittance surged by 148.48 per cent, climbing from N726bn in January to N1.8tn in February.

The report indicated that crude oil and condensate production dropped from 1.64mbpd in January to 1.51mbpd in February, reflecting disruptions across key upstream assets.

A breakdown showed that crude oil output stood at 1.27mbpd, while condensate contributed 0.24mbpd during the month under review.

The national oil company attributed the decline to multiple operational challenges, including outages on critical export infrastructure.

It stated, “February production performance was impacted by the combined effect of the outage of the Trans Forcados Pipeline due to integrity issues, start-up challenges of Stardeep Agbami GTC 2 and 3 following completion of turnaround maintenance, delayed completion of the Sterling Oguali flow station, and production ramp-up constraints from Enyie wells due to sludge management issues, among other operational challenges.”

Despite the dip in crude output, gas production remained relatively strong, rising to 7,458 million standard cubic feet per day, one of the highest levels recorded in recent months.

Gas sales, however, stood at 4,893mmscf/d on a two-month lag basis, slightly below the peak levels recorded in mid-2025.

The report also showed that total crude oil and condensate sales for February stood at 23.08 million barrels, lower than the 28.64 million barrels recorded in October 2025, reflecting both production and evacuation constraints.

On the downstream side, the availability of Premium Motor Spirit at NNPC Retail Limited stations dropped to 58 per cent, raising concerns about fuel distribution efficiency and possible supply tightness across parts of the country.

In terms of infrastructure, the company reported steady progress on key gas pipeline projects critical to Nigeria’s domestic gas expansion strategy.

It noted that the Ajaokuta-Kaduna-Kano gas pipeline had reached 93 per cent completion, with ongoing construction and installation works aimed at delivering early gas supply to Abuja and other northern corridors.

Similarly, the Obiafu-Obrikom-Oben gas pipeline project recorded 96 per cent completion, with drilling operations continuing in collaboration with stakeholders.

The report stated, “We will continue to strengthen production resilience and restore output through improved asset reliability, faster resolution of evacuation constraints, timely delivery of critical infrastructure, and deeper collaboration with operators and other stakeholders to drive disciplined and accountable production recovery across key assets.”

Upstream pipeline availability was put at 93 per cent, reflecting relative stability in parts of the network despite the disruptions recorded during the month.

Nigeria has struggled to consistently meet its crude oil production targets in recent years due to a mix of pipeline vandalism, oil theft, ageing infrastructure, and delayed upstream investments.

The Trans Forcados Pipeline, one of the country’s major crude evacuation routes, has historically been prone to outages, often leading to significant production losses whenever disruptions occur.

At the same time, the Federal Government has increasingly relied on NNPC Limited as a major revenue source, especially amid fiscal pressures and foreign exchange constraints.

The company’s strong revenue and statutory remittances in February highlight its critical role in supporting government finances, even as operational inefficiencies continue to weigh on production.

Sustained improvements in pipeline security, infrastructure reliability, and timely project delivery, particularly on strategic gas pipelines like AKK and OB3, will be crucial to unlocking Nigeria’s full oil and gas potential and stabilising energy supply across the country.

The report noted that all figures remain provisional and subject to reconciliation with relevant stakeholders.