Nigeria: NNPC January Revenue Drops 46.7 Percent to N2.57tn Amid Increased Oil Sales

Nigeria's national oil company, the Nigerian National Petroleum Company Limited (NNPC Ltd) recorded N2.571 trillion in revenue in January 2026, representing a 46.7 per cent decline from the N4.82 trillion reported in the previous month, even as both oil and gas sales improved during the period.

The figures, contained in the NNPC Monthly Report Summary for January 2026 released yesterday pointed to a sharp contraction in monthly earnings despite relatively stable crude oil production, increased hydrocarbon sales volumes and strong pipeline availability across key upstream infrastructure.

The N2.571 trillion revenue recorded in January reflected a N2.249 trillion decline compared to the N4.82 trillion posted in December, highlighting the volatility that continues to characterise Nigeria's petroleum earnings.

Although the report did not provide an explanation for the sharp revenue drop, the data showed that sales volumes for both crude oil and natural gas actually increased in January, suggesting that the decline in earnings may have been influenced by factors outside the operational data captured in the report.

Besides, crude oil and condensate production during the month averaged 1.64 million barrels per day (bpd). A breakdown of the production figures showed that crude oil contributed 1.39 million bpd, while condensate accounted for 0.25 million bpd, bringing the combined total to the 1.64 mbpd recorded for the period.

Compared with December's total production of about 1.60 million bpd, January output represented a 2.5 per cent month-on-month increase.

Despite the improvement, production levels remained broadly within the narrow band observed throughout the past year, where total crude and condensate output fluctuated mostly between 1.60 million bpd and 1.69 million bpd.

This indicated that while output has stabilised somewhat after years of disruptions linked to pipeline vandalism and oil theft, Nigeria has yet to achieve the significant production expansion needed to raise petroleum earnings sustainably.

Data on crude oil and condensate sales also showed an improvement during the month. Total oil sales stood at 24.75 million barrels in January, up from 22.79 million barrels in December, representing a month-on-month increase of approximately 8.6 per cent.

Similarly, the January figure represented a strong recovery from November's 19.98 million barrels, although it remained below the 26.71 million barrels recorded in October, which was the highest level within the period shown in the report.

The rise in oil sales volumes made the sharp decline in overall revenue particularly striking, as higher sales would typically support stronger earnings unless prices or payment flows changed significantly.

Natural gas operations, meanwhile, recorded notable growth during the period under review. The report showed that gas production rose to 7,283 million standard cubic feet per day (mmscfd) in January. This represented a 5.3 per cent increase from the 6,914 mmscfd produced in December.

Although the January figure marked a rebound in output, it was not the highest level recorded in the past year, as earlier peaks of 7,640 mmscfd and 7,722 mmscfd were recorded around mid-2025.

Nevertheless, the improvement indicated a renewed upward momentum in gas production following the drop to 6,284 mmscfd in September, when output reached its lowest level in the period covered by the report.

But gas sales improved in tandem with production. According to the data, gas sales reached 4,978 mmscfd in January, rising from 4,754 mmscfd recorded in December, representing a 4.7 per cent increase.

The January sales figure matched the peak level recorded earlier in July, and represented a significant recovery when compared with the 3,443 mmscfd recorded in September, when gas sales temporarily dipped.

The report also disclosed that profit after tax for January stood at N385 billion, compared to N351 billion last December and N502 billion in November last year. Statutory payments made by the company during the period were reported at N726 billion, as against N1.27 trillion last December.

When measured against the total monthly revenue of N2.571 trillion, this represented approximately 28.3 per cent of the company's earnings transferred to the federation in the form of statutory obligations.

In all, operational indicators across key petroleum infrastructure remained relatively strong during the month. The report showed that upstream pipeline availability stood at 96 per cent, reflecting stable evacuation capacity for crude oil production.

Similarly, the Obiafu-Obrikom-Oben (OB3) gas pipeline recorded 96 per cent availability, while the Ajaokuta-Kaduna-Kano (AKK) pipeline recorded 92 per cent availability, indicating steady utilisation levels across the country's expanding gas transmission network.

The report also showed that Petroleum Management System (PMS) availability across NNPC Retail stations stood at 54 per cent during the month.

In addition to operational metrics, the report highlighted progress on several strategic gas infrastructure projects.

For the AKK pipeline, the company disclosed that pre-commissioning activities continued on the mainline, while significant progress was recorded in the construction of Block Valve Stations and Intermediate Pigging Stations, both of which are essential for pipeline safety and maintenance operations. The NNPC said work had reached 92 per cent on the critical project.

Similarly, the OB3 gas pipeline project continued to advance, particularly at the River Niger crossing, where drilling activities were reported to be progressing as scheduled, having reached 96 per cent completion.

The company also reported that maintenance operations were successfully completed on Agbami and Renaissance facilities, although some planned deliveries experienced delays due to weather conditions, evacuation issues and other logistical challenges.

Beyond commercial operations, the company highlighted ongoing social impact initiatives under the NNPC Foundation.

According to the report, the Financial Literacy Programme for 2026 Batch 'A' Stream 1 National Youth Service Corps (NYSC) members was successfully conducted via online streaming on January 25, 2026, attracting 79,657 participants across the 36 states and the Federal Capital Territory (FCT).

This article originally appeared on This Day.