By Ayo Olesin
The Nigerian National Petroleum Company Limited (NNPC Ltd), posted its strongest monthly profit in 10 months in June, with earnings rising nearly 16 per cent to N535 billion, buoyed by robust revenues, higher gas production and continued progress on strategic pipeline projects despite a slight decline in crude oil output.
The company’s June 2026 Monthly Financial and Operations Report showed that profit after tax climbed 15.8 per cent from N462 billion in May, while monthly revenue reached N4.39 trillion, underscoring an improving financial performance after a volatile first half of the year.
The June earnings are the highest since August 2025, when NNPC reported a profit of N539 billion, signalling a sharp turnaround from the slump recorded in February when profit plunged to just N136 billion.
The improved performance also translated into stronger public finances. NNPC disclosed that it remitted N6.29 trillion in statutory payments to the Federation Account between January and June 2026, reinforcing its position as one of the Federal Government’s largest revenue generators at a time of heightened fiscal pressures.
However, operational challenges continue to weigh on crude oil production.
Average crude oil and condensate output edged down to 1.72 million barrels per day in June from 1.73 million barrels per day in May. NNPC attributed the decline to operational disruptions, facility integrity issues and subsurface challenges across several producing assets.
The modest decline in oil production was, however, offset by stronger gas performance.
Natural gas production rose 0.86 per cent to 7.841 million standard cubic feet per day, reflecting the company’s strategic shift towards gas development as Nigeria seeks to expand domestic energy supply, support industrialisation and diversify export earnings.
NNPC also reported steady progress on two flagship gas infrastructure projects expected to transform gas transportation across the country.
The Obiafu-Obrikom-Oben (OB3) Gas Pipeline has reached 98 per cent completion, with final tie-in works underway ahead of the planned first gas delivery in August.
Likewise, construction of the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline has advanced to 94 per cent completion, keeping the project on course for early gas delivery to Abuja later this year. The multi-billion-dollar pipeline is expected to unlock industrial growth, improve electricity generation and deepen gas utilisation across northern Nigeria.
June’s performance caps a remarkable recovery in NNPC’s monthly earnings.
After posting a record N539 billion profit in August 2025, earnings fell sharply to N216 billion in September before rebounding to N447 billion in October and N502 billion in November. Profit weakened again to N351 billion in December and N385 billion in January 2026 before collapsing to N136 billion in February.
Since then, the company has staged a sustained recovery, posting N276 billion in March, N481 billion in April, N462 billion in May and N535 billion in June, which represents an increase of N399 billion from the February low.
The latest figures highlight both the opportunities and challenges facing Nigeria’s energy sector. While crude oil production remains constrained by operational bottlenecks and asset-related issues, expanding gas production and the near completion of critical pipeline infrastructure are beginning to strengthen NNPC’s operational and financial performance.
The results are also significant for government finances. With oil receipts still accounting for a substantial share of public revenue, stronger profitability at NNPC provides additional support for federal revenues, particularly as the government seeks to narrow fiscal deficits, fund infrastructure and sustain economic reforms.
The company had earlier announced that it remitted N14.706 trillion to the Federation Account in 2025 while posting an annual profit of N5.76 trillion, underscoring its growing contribution to the country’s finances following its transition to a commercially driven national oil company.
