Nigeria’s state-owned Nigerian National Petroleum Company Ltd reported a sharp drop in revenue in January even as the federal government approved fiscal incentives to unlock the long-delayed $20 billion Bonga Southwest Aparo deepwater project, a development expected to boost oil and gas output and attract foreign investment.
Revenue at NNPC Ltd fell to N2.57 trillion in January from N4.82 trillion in December, according to the company’s Monthly Report Summary released Monday in Abuja. The decline of about 47 percent reflects disruptions to crude deliveries caused by operational constraints, although output recovered following maintenance at key offshore facilities.
Despite the revenue drop, NNPC posted a profit after tax of N385 billion, slightly higher than December 2025. Statutory remittances to the Federation Account also fell, from N1.27 trillion to N726 billion. The company attributed the decline to lower planned deliveries, adverse weather, evacuation challenges, and asset integrity issues that limited crude movements during the month.
Crude oil and condensate production averaged 1.64 million barrels per day in January, increasing slightly after turnaround maintenance at the Agbami field and the Renaissance-operated Estuary Area facilities. Natural gas production remained robust at 7,283 million standard cubic feet per day, reflecting the government’s push to expand domestic gas supply for power generation and industrial use while positioning Nigeria as a major gas exporter.
In the downstream segment, NNPC Retail Ltd reported that its network of filling stations achieved 54 percent availability of Premium Motor Spirit, highlighting ongoing challenges in maintaining fuel supply.
The revenue and operational update coincided with a major policy development. On Tuesday, NNPC Ltd announced that President Bola Ahmed Tinubu approved a targeted fiscal incentive package to unlock the Bonga Southwest Aparo Project. The offshore development, operated by Shell Nigeria Exploration and Production Company in partnership with NNPC and other international firms, is expected to attract roughly $20 billion in foreign direct investment.
The presidential approval followed months of negotiations involving the Federal Inland Revenue Service, the President’s Special Adviser on Energy, Olu Verheijen, and Shell Plc CEO Wael Sawan. NNPC’s Chief Corporate Communications Officer, Andy Odeh, said the framework, which includes an enhanced production tax credit and resolution of a 2021 dispute settlement, is aimed at improving the commercial viability of offshore projects while protecting Nigeria’s long-term revenue interests.
NNPC Group CEO Bayo Ojulari described the approval as a breakthrough for a project stalled for nearly two decades. He said it demonstrates the government’s commitment to improving the investment climate and enabling complex energy projects to reach financial close.
The Bonga Southwest Aparo development is expected to become Nigeria’s first Final Investment Decision on a deepwater Production Sharing Contract asset since 2008, producing about 150,000 barrels of crude per day and 140 million standard cubic feet of gas daily once operational. The project is projected to create more than 5,000 direct and indirect jobs across the oil and gas value chain.
Officials say the development is part of Nigeria’s broader strategy to attract over $100 billion in energy investments by 2030, focusing on deepwater exploration, gas infrastructure, and energy transition projects. Nigeria’s deepwater basins, including Bonga, Erha, and Agbami, have historically been among the most productive in Africa, though new project sanctions slowed in recent years due to regulatory uncertainty and rising costs.
The Bonga Southwest Aparo project builds on the success of the original Bonga field, Nigeria’s first deepwater oil development, which began production in 2005. With fiscal incentives now in place, NNPC and its partners are expected to move toward a Final Investment Decision, triggering multibillion-dollar capital investment to develop the offshore field.
For Nigeria, the project represents a critical step in stabilizing long-term oil production, expanding gas capacity, and attracting sustained foreign investment while managing fiscal pressures in the energy sector.