Sharp jump from January figures signals tighter controls, improved transparency, and stronger oil sector performance….
The Nigerian National Petroleum Company Limited (NNPC Ltd) recorded a significant surge in remittances to the Federation Account in February 2026, signaling early gains from ongoing reforms in the country’s oil and gas sector.
According to its latest Monthly Report Summary, the national oil company paid N1.804 trillion into the Federation Account during the month, more than doubling the N726 billion remitted in January. The sharp increase reflects stronger revenue performance and a renewed push toward stricter financial discipline.
The report also points to broader improvements across key financial indicators. Total revenue climbed to N2.68 trillion in February, up from N2.57 trillion in the previous month, while profit after tax reached N136 billion, underscoring improved operational efficiency. Meanwhile, crude oil and condensate production averaged 1.51 million barrels per day.
Despite these gains, production was not without setbacks. NNPC Ltd cited a combination of operational challenges, including outages on the Trans Forcados Pipeline, start-up issues following maintenance work at the Agbami facility, delays at the Sterling Oguali flow station, and constraints linked to sludge management at Enyie wells. These factors collectively weighed on output during the period.
The improved remittance performance comes on the heels of a major policy shift by the federal government. In mid-February, President Bola Ahmed Tinubu signed an Executive Order aimed at overhauling revenue remittance practices in the oil and gas industry.
The directive suspended the collection of certain fees by NNPC Ltd and mandated the full remittance of oil and gas revenues to the Federation Account. It also established an inter-agency committee, led by the Minister of Finance and Coordinating Minister for the Economy, to oversee implementation and ensure compliance.
These reforms are part of a broader effort to align revenue management with constitutional provisions, enhance transparency, and plug long-standing leakages in the system.
NNPC Ltd also highlighted ongoing efforts to stabilize and boost production levels. The company attributed steady output to improved asset reliability and quicker resolution of evacuation challenges, alongside stronger collaboration with industry partners.
In addition, progress continues on key infrastructure projects, including the AKK gas pipeline, where construction and installation activities are advancing toward early gas delivery to Abuja.
With reforms taking root and operational improvements underway, the national oil company appears poised to sustain stronger revenue performance in the months ahead, an outcome that could provide a much-needed boost to Nigeria’s fiscal outlook.
