NNPC May profit dips to ₦462B despite oil output hitting 12-month peak
NNPC Limited recorded ₦462 billion profit after tax in May 2026 - a ₦19 billion (3.95%) drop from April's ₦481 billion - despite achieving 12-month highs in oil and gas production. Crude output rose to 1.47 million barrels/day (with condensate steady at 0.25 mbpd), while gas production hit 7,774 mmscf/day, up from September 2025's 6,284 mmscf/d low.
However, revenue fell sharply to ₦4.335 trillion from ₦4.97 trillion in April. NNPC cited ongoing operational challenges: reservoir pressure decline, underperforming wells, lifting constraints and maintenance across assets like TotalEnergies-operated fields and Bonga.
The company reported improved pipeline performance - OB3 gas pipeline at 97% availability, AKK at 94% - but Premium Motor Spirit availability at retail stations remained low at 57%.
Most significantly for national finances, NNPC's cumulative statutory payments to the Federation totaled ₦4.858 trillion between January and May. This shows the company's continued contribution to government revenue despite monthly profit volatility.
With oil earnings still vital to Nigeria's budget, does this pattern of rising production but falling profits and revenue indicate sector-wide pricing or cost pressures that could affect future fiscal planning?