NNPC's January Revenue Plummets by 46.7% to N2.57 Trillion

The Nigerian National Petroleum Company Limited (NNPC Ltd) reported revenues of N2.571 trillion in January 2026, reflecting a 46.7% decrease from the N4.82 trillion generated in December 2025. Notably, this revenue decline occurred amidst improvements in oil and gas sales during the same period.

The figures presented in the NNPC Monthly Report Summary for January 2026, released on Monday, indicated a dramatic contraction in monthly revenues despite a stable rate of crude oil production and increased hydrocarbon sales volumes across essential upstream infrastructure.

The January revenue of N2.571 trillion represents a N2.249 trillion drop compared to December's figures. This underscores the persistent volatility affecting Nigeria's petroleum revenue.

While the report did not clarify the factors leading to the sharp revenue decline, it was noted that sales volumes for both crude oil and natural gas rose in January. This suggests that the decrease in earnings might have been influenced by factors beyond the operational data presented in the report.

Furthermore, crude oil and condensate production for January averaged 1.64 million barrels per day (bpd), with crude contributing 1.39 million bpd and condensate 0.25 million bpd, resulting in a total output consistent with the reported figures.

In comparison to the December output of approximately 1.60 million bpd, January's production reflected a month-on-month increase of about 2.5%.

Despite these improvements, production levels have remained within a narrow range observed over the past year, with crude and condensate outputs fluctuating predominantly between 1.60 million bpd and 1.69 million bpd.

This pattern suggests that, while production has stabilized following years of disruptions due to pipeline vandalism and oil theft, Nigeria still faces challenges in achieving significant production expansion for sustainable increases in petroleum revenue.

Data on crude oil and condensate sales revealed that total oil sales stood at 24.75 million barrels in January, up from 22.79 million barrels in December, indicating an increase of around 8.6%. This marked a significant recovery from November's figure of 19.98 million barrels, although it still fell short of the 26.71 million barrels reported in October, which was the highest recorded level during this time frame.

The surge in oil sales volumes highlights the stark contrast with the overall revenue decline, as higher sales would generally bolster revenues unless there were significant fluctuations in prices or payment flows.

In terms of natural gas operations, there was a notable increase during the review period, with gas production climbing to 7,283 million standard cubic feet per day (mmscfd) in January—an increase of 5.3% from December’s 6,914 mmscfd.

Although the January output represented a rebound, it was still below the highest levels recorded the previous year, which peaked at 7,640 mmscfd and 7,722 mmscfd around mid-2025.

Nevertheless, this increase indicates an upward trend in gas production following a decline to 6,284 mmscfd in September, which was the lowest output recorded within the reporting period.

Simultaneously, gas sales experienced growth in line with production, hitting 4,978 mmscfd in January, an increase from December’s 4,754 mmscfd, translating to a 4.7% rise. This monthly sales figure matched the peak recorded in July and signified a significant recovery compared to the 3,443 mmscfd reported in September when sales dipped.

Additionally, the report revealed a profit after tax amounting to N385 billion for January, a rise from N351 billion in December and down from N502 billion in November last year. The company's statutory payments during this period were N726 billion, compared to N1.27 trillion in December.

When considering the overall monthly revenue of N2.571 trillion, the statutory payments accounted for approximately 28.3% of the NNPC's earnings that were directed to the federation in statutory obligations.

Overall, operational indicators within key petroleum infrastructure remained relatively robust during January, with upstream pipeline availability at 96%, ensuring stable evacuation capacity for crude oil production.

Moreover, the Obiafu–Obrikom–Oben (OB3) gas pipeline also recorded 96% availability, while the Ajaokuta–Kaduna–Kano (AKK) pipeline achieved 92% availability, demonstrating consistent utilization across Nigeria’s growing gas transmission network.

The report indicated that the availability of Petroleum Management System (PMS) across NNPC Retail stations reached 54% for the month.

Beyond operational metrics, the report highlighted advancements in several strategic gas infrastructure projects. For the AKK pipeline, pre-commissioning activities continued on the mainline, with substantial progress noted in the construction of Block Valve Stations and Intermediate Pigging Stations, which are critical for pipeline safety and maintenance operations. The project was reported to be 92% complete.

The OB3 gas pipeline project also made significant headway, particularly at the River Niger crossing, where drilling operations progressed on schedule, reaching 96% completion.

Maintenance operations on the Agbami and Renaissance facilities were successfully concluded; however, some planned deliveries faced delays due to weather conditions, evacuation issues, and other logistical challenges.

In addition to its commercial initiatives, NNPC emphasized ongoing social impact projects under the NNPC Foundation. The report noted the successful execution of the Financial Literacy Programme for 2026 Batch ‘A’ Stream 1 National Youth Service Corps (NYSC) members, conducted via online streaming on January 25, 2026, with 79,657 participants from all 36 states and the Federal Capital Territory (FCT).