By Ayomide Otitoju
The Nigerian National Petroleum Company Limited (NNPC Ltd) has reported a rise in crude oil and natural gas output in January 2026, even as overall petroleum revenue declined sharply.
According to the NNPC Monthly Report Summary for January, crude oil production, including condensates, reached 1.64 million barrels per day (bpd)—up 5.81% from December 2025. Of this, 1.39 million bpd was crude oil and 0.25 million bpd condensates, marking a 2.5% month-on-month increase. Natural gas production rose 5.34% to 7,283 million standard cubic feet per day (mmscfd) from 6,914 mmscfd in December.
Despite the production gains, NNPC recorded total revenue of N2.571 trillion in January, a 46.7% drop from the N4.82 trillion reported in December. The report did not provide a clear explanation for the decline, though increased oil and gas sales volumes—24.75 million barrels of oil in January versus 22.79 million barrels in December, and 4,978 mmscfd of gas versus 4,754 mmscfd—suggest that falling prices or payment delays may have impacted earnings.
Profit after tax stood at N385 billion in January, slightly up from N351 billion in December but down from N502 billion in November. Statutory payments to the federation totaled N726 billion, representing 28.3% of revenue.
Operational indicators remained strong. Pipeline availability for upstream crude evacuation stood at 96%, while the Obiafu–Obrikom–Oben (OB3) gas pipeline and the Ajaokuta–Kaduna–Kano (AKK) gas pipeline recorded 96% and 92% availability, respectively. PMS availability at NNPC retail stations was 54% during the month.
NNPC also reported progress on strategic infrastructure projects. Pre-commissioning activities for the AKK pipeline mainline continued, with Block Valve Stations and Intermediate Pigging Stations reaching 92% completion. The OB3 pipeline reached 96% completion at the River Niger crossing. Maintenance operations at the Agbami and Renaissance facilities were completed successfully, although some deliveries were delayed due to weather and logistical challenges.
The report highlights a stabilizing production trend after years of pipeline vandalism and oil theft, but also underscores the ongoing volatility in Nigeria’s petroleum earnings, despite operational improvements.
