Stronger production boosts revenue, but declining crude sales and pipeline disruptions highlight ongoing challenges……
NNPC Limited delivered a solid financial performance in March 2026, posting a profit after tax of N276 billion, driven largely by a notable increase in gas production during the month.
The figures, released on May 4 through the company’s monthly report, remain provisional pending reconciliation with stakeholders. Still, they offer a snapshot of a business regaining momentum amid a complex operating environment.
Gas production rose to 7,731 million standard cubic feet per day (mmscf/d), up from 7,458 mmscf/d recorded in February, continuing a steady upward trend that has been building since late 2025. This boost in output played a central role in lifting overall profitability.
Revenue for March came in at N2.774 trillion, underlining the scale of operations and reinforcing NNPC’s position at the heart of Nigeria’s energy sector. Over the first quarter of the year, the company also reported statutory payments totaling N2.888 trillion, highlighting its continued importance to government finances.
Oil production showed modest improvement. Crude oil and condensate output edged up to 1.56 million barrels per day from 1.51 million barrels per day in February, suggesting a gradual recovery in operational efficiency.
However, the gains were not uniform across all segments. Crude oil and condensate sales dropped sharply to 17.27 million barrels in March, down from 23.08 million barrels the previous month. The decline points to possible bottlenecks in exports or logistics, even as production levels improved.
Gas sales, on the other hand, mirrored the production surge, rising to 5,059 mmscf/d from 4,893 mmscf/d in February, an indication of stronger demand and improved distribution channels.
NNPC attributed part of the production gains to the early completion of maintenance work at the OML 118 Bonga Field, which was finalized 12 days ahead of schedule. The accelerated timeline helped restore output faster than expected.
Yet, operational setbacks persisted. A leak on the Trans Forcados Pipeline triggered outages across several assets between February 20 and March 25, partially offsetting the gains recorded during the period.
As Nigeria’s state-owned energy giant, NNPC continues to play a pivotal role across upstream, midstream, and downstream operations. Its financial contributions remain a key pillar of national revenue.
The company’s recent performance builds on its broader financial trajectory. It reported a profit after tax of N5.4 trillion on revenue of N45.1 trillion for the 2024 financial year, further cementing its position as one of the country’s most significant economic institutions.
In a move aimed at strengthening its balance sheet, President Bola Tinubu approved a debt relief package in late 2025 that cleared $1.42 billion and N5.57 trillion from NNPC’s obligations, easing pressure on its finances and positioning it for greater stability.
While March’s numbers reflect resilience and operational progress, they also underscore the delicate balance NNPC must maintain as it navigates production gains, infrastructure constraints, and shifting market dynamics.
