NNPC Federation Account Remittances Hit N2.88trn In March As Profit Rises to N276bn

The Nigerian National Petroleum Company Limited (NNPC) reported a profit after tax of N276 billion in March, up from N136 billion in February 2026.

Details from the company’s latest monthly report published on Monday showed that revenue climbed to N2.77 trillion in March, representing a 3.51 per cent increase from N2.68 trillion in February, while crude oil and condensate production rose to 1.56 million barrels per day.

Remittances to the Federation Account hit N2.88 trillion in March, up from N1.80 trillion in February, an increase of 60 per cent.

These figures follow Executive Order No. 9, signed by President Bola Tinubu on February 25, 2026, and gazetted by the Federal Ministry of Justice. The order ended NNPC deductions of 30 per cent for the Frontier Exploration Fund (FEF), active since 2002, and 30 per cent for upstream investment fees. It requires direct remittances of royalties, taxes, and profit from oil/gas.

Total revenue was N2.77 trillion in March, compared to N2.68 trillion in February.

Crude oil production was 1.32 million barrels per day (mbpd) in March, compared to 1.27 mbpd in February. Condensate production remained at 0.24 mbpd. Crude sales volume was 17.27 million barrels in March, compared to 22.09 million barrels in February. Gas production was 7,731 million standard cubic feet per day (mmscf/d) in March, compared to 7,748 mmscf/d in February.

The report stated production changed due to completion of OML 118 Bonga Turnaround Maintenance—operated by Shell Nigeria Exploration and Production Company (SNEPCo) since 1999—12 days ahead of schedule.

The report showed that a Trans Forcados Pipeline leak at Keremor caused curtailments from February 20 to March 25, along with other issues.

NNPC reported that ongoing restoration work for asset reliability and evacuation.

On the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline—a 614-km project started in 2019—welding finished on the 24-inch Gwagwalada spur, with mainline pre-commissioning underway.

OB3 River Niger Crossing drilling occurred in March. NNPC Gas Infrastructure Company (NGIC) reported completion in April.

Gas production emerged as the strongest driver of growth, rising to 7,731 million standard cubic feet per day, the highest level recorded in the past 12 months.

Highlighting the performance, the report stated, “This edition records month-on-month growth across key production metrics, with crude oil and condensate output rising to 1.56 mmbopd and gas production climbing to 7,731 mmscf/d.”

An analysis of the figures showed that crude oil output remained flat compared to February at 1.56 million barrels per day, but improved from 1.51 million barrels per day recorded in January.

Gas production, on the other hand, rose steadily over the first quarter, increasing from 7,281 mmscf/d in January to 7,458 mmscf/d in February before peaking in March.

The company attributed the improved production levels to operational efficiency, particularly at offshore assets.

It stated, “Production improved compared to the previous month, driven by the early completion of the OML 118 Bonga Turnaround Maintenance, delivered 12 days ahead of schedule.”

However, the report acknowledged that pipeline disruptions significantly impacted output during the period.

NNPC stated, “The Trans Forcados Pipeline outage, resulting from a leak at the Keremor axis, negatively impacted production volumes, leading to curtailments across several assets from February 20 to March 25, alongside other operational challenges.”

Despite these setbacks, the company maintained that it is implementing targeted recovery strategies to stabilise output.

It noted, “NNPC Limited continues to strengthen production resilience by executing restoration plans focused on improving asset reliability, resolving evacuation constraints, and implementing other targeted recovery initiatives.”

Further analysis showed that crude oil sales dropped sharply to 17.37 million barrels in March, down from 22.85 million barrels in February and 25.75 million barrels in January, suggesting that evacuation and logistics challenges persist.

On the gas side, sales increased to 5,059 mmscf/d, reinforcing the growing role of gas in Nigeria’s energy mix.

The report emphasised the significance of this performance, stating that gas production for March “reached its highest level in the trailing 12-month period covered by the report.”

Financially, the company recorded strong gains, with profit after tax rising by about 102.94 per cent month-on-month.

The report said, “The report covers key figures, including revenue of N2.774 billion (up by 3.51 per cent from the February 2026 report), profit after tax of N276 billion (up by approximately 102.94 per cent from the February 2026 report).”

Cumulatively, statutory payments to the Federation reached N2.89 trillion between January and March 2026.

On infrastructure, NNPC highlighted progress on key gas pipeline projects aimed at boosting supply and supporting power generation.

It disclosed, “On the Ajaokuta-Kaduna-Kano Gas Pipeline, welding of the 24-inch spur line to the Gwagwalada Independent Power Plant has been completed, while significant progress has been recorded for outstanding mainline pre-commissioning works.”

The company added, “For the Obiafu-Obrikom-Oben Gas Pipeline River Niger Crossing, drilling operations continued as scheduled.”

However, downstream indicators remained weak, with petrol availability at NNPC retail stations put at 56 per cent nationwide.

The report, however, cautioned that all figures remain subject to reconciliation.

It stated, “All production, sales and financial figures are provisional and subject to reconciliation with relevant stakeholders.”

The March performance reflects gradual recovery in Nigeria’s oil and gas sector, driven largely by improved asset management and growing gas output.

With gas production now at its highest level in a year and profit surging sharply, the March report positions NNPC on a stronger financial footing, although lingering infrastructure and supply chain challenges continue to pose risks to sustained growth.