Nigeria’s state-owned energy company, Nigerian National Petroleum Company Limited (NNPC Ltd.), reported a sharp decline in revenue and profit for May 2026 despite maintaining relatively stable crude oil and natural gas production, highlighting the continued financial pressures facing Africa’s largest oil producer.
According to NNPC’s latest Monthly Report Summary released on Wednesday, revenue fell to ₦4.335 trillion ($) in May from ₦4.971 trillion in April, representing a decline of ₦636 billion, or nearly 13%.
Profit after tax also slipped to ₦462 billion, down from ₦481 billion recorded in the previous month.
The weaker financial performance came even as the company sustained production levels, suggesting that market conditions, pricing dynamics and operational challenges weighed on earnings during the month.
NNPC said average crude oil and condensate production stood at 1.73 million barrels per day, while natural gas output reached 7.774 billion standard cubic feet per day.
The company maintained a 98% upstream pipeline availability rate, reflecting continued operational reliability across its production network.
Operational Challenges Persist
Despite stable production, NNPC acknowledged that several operational issues continue to affect performance and limit production potential.
The company said it is intensifying efforts to address declining reservoir pressure, lifting constraints, maintenance-related shutdowns and facility reliability challenges.
“These measures are expected to reduce production deferments, improve asset availability, and boost overall output,” the company said.
Retail fuel availability at NNPC Retail Limited stations averaged 57% during May, according to the report.
NNPC Remains Major Contributor to Government Revenue
Despite the monthly earnings decline, NNPC continued to make significant fiscal contributions to the Nigerian government.
The company disclosed that it remitted ₦4.858 trillion to the Federation between January and May 2026 through statutory payments, reinforcing its role as one of the country’s largest sources of public revenue.
The figures come as the Nigerian government continues implementing reforms aimed at increasing oil production above 2 million barrels per day while expanding natural gas utilisation to support industrialisation, electricity generation and economic diversification.
Strategic Gas Projects Near Completion
NNPC also reported substantial progress on two of Nigeria’s flagship gas infrastructure projects designed to improve domestic gas supply and strengthen energy security.
The Ajaokuta–Kaduna–Kano (AKK) Gas Pipeline has reached 94% completion, with construction, installation and pre-commissioning activities progressing toward the commencement of gas supply to Abuja later this year.
Meanwhile, the OB3 River Niger Crossing Pipeline is 97% complete, with post-pullback pre-commissioning and tie-in activities underway.
NNPC said the pipeline section is expected to be fully commissioned before the end of the third quarter of 2026.
Both projects form a key part of the Federal Government’s Decade of Gas initiative, which seeks to leverage Nigeria’s vast natural gas reserves to boost industrial development, expand domestic energy supply and reduce reliance on crude oil exports.
Healthcare Investment
Beyond its energy operations, NNPC highlighted a healthcare intervention undertaken through the NNPC Foundation.
The foundation commissioned a 1.5 Tesla Magnetic Resonance Imaging (MRI) system at the Nnamdi Azikiwe University Teaching Hospital in Nnewi, Anambra State, alongside supporting power infrastructure, including chillers, an uninterruptible power supply system and backup facilities.
The company said more than 40 patients received free MRI scans during a training programme for radiologists and radiographers before the equipment became operational.
According to NNPC, the facility is expected to improve access to advanced diagnostic services in southeastern Nigeria by reducing patient referrals outside the region and supporting earlier disease detection.
The company noted that all financial and operational figures contained in the report remain provisional and are subject to reconciliation with relevant stakeholders.