The Nigeria National Petroleum Company Limited (NNPC) revenue fell by 12.8 per cent in May 2026, dropping from ₦4.971 trillion in April to ₦4.335 trillion despite a rise in crude oil and condensate production to a one-year high.
According to the NNPC Limited Monthly Report Summary for May 2026 released on Wednesday, the profit after tax also dropped by 3.9 per cent from N481 billion in April to N462 billion in May.
Crude oil and condensate production rose to 1.73 million barrels per day (mbpd) in May from 1.68 mbpd in April, reflecting an increase of 2.98 per cent.
Natural gas production also rose to 7.774 million standard cubic feet per day (mmscf/d) from 7.730 mmscf/d, reflecting a modest 0.57 per cent increase over the previous month.
Several factors contributed to the financial disconnect, even as production increased to 1.73 million barrels per day.
Lower Sales Volumes: While production rose, the volume of crude oil and condensate sold dropped significantly to 18.95 million barrels in May from 23.65 million in April, indicating weaker offtake.
Gas sales also dropped from 5044 mmscf/d in April to 4921 mmscf/d in May.
Operational Constraints: NNPC pointed to several ongoing challenges that weighed on performance, including declining reservoir pressure at key fields like Bonga, lifting constraints, maintenance shutdowns, and facility reliability issues.
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The revenue decline also reflects the impact of President Bola Tinubu’s Executive Order Nine, which restructured the oil revenue remittance framework and stripped NNPC of certain deduction powers.
Despite the lower revenue, NNPC’s cumulative remittances to the Federation Account for the first five months of 2026 surged to ₦4.858 trillion.
The report also noted that key gas infrastructure projects such as Obiafu-Obrikom-Oben (OB3) Gas Pipeline progressed to 97 per cent completion, as pre-commissioning and tie-in works advance towards full commissioning by the end of Q3 2026.
Also, the construction, installation and pre-commissioning activities on the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline progressed, supporting the target of early gas delivery to Abuja in 2026.
Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X