The Nigerian National Petroleum Company Limited (NNPC Ltd) remitted N2.89 trillion to the Federation Account in the first quarter of 2026 and posted a profit after tax of N276 billion in March, as higher gas output and policy reforms strengthened its financial performance.
The figures were disclosed in the company’s March 2026 operational and financial report published on May 4, which said all data remained provisional pending reconciliation with relevant agencies.
The report showed that NNPC’s statutory remittances rose steadily in the first three months of the year, supported by improved production and stricter revenue management rules introduced by the federal government.
NNPC remitted N726 billion in January and N1.804 trillion in February, bringing total transfers to N2.888 trillion by the end of March, positioning the company as a key fiscal anchor for the federation.
The strong remittance performance follows an executive order signed in February 2026 by President Bola Tinubu aimed at reforming oil revenue management and boosting transparency.
The directive suspended management fees and frontier exploration deductions previously retained by NNPC and mandated the full remittance of oil and gas revenues to the Federation Account. It also established an inter-agency committee led by the Minister of Finance to oversee compliance.
Analysts say the reforms have reshaped cash flows across the petroleum value chain, increasing funds available for distribution to federal, state and local governments through the Federation Account Allocation Committee.
Alongside higher remittances, NNPC reported a rebound in profitability in March, with profit after tax rising to N276 billion on revenue of N2.774 trillion.
The performance was driven largely by stronger gas output, which rose to 7,731 million standard cubic feet per day (mmscf/d) in March from 7,458 mmscf/d in February, continuing an upward trend observed since late 2025.
Gas sales also increased to 5,059 mmscf/d from 4,893 mmscf/d in the previous month, reflecting improved distribution and demand.
Crude oil and condensate production rose modestly to 1.56 million barrels per day in March from 1.51 million barrels per day in February, indicating a gradual recovery in upstream operations.
The company attributed the production gains in part to the early completion of maintenance work on the OML 118 Bonga field, which was delivered 12 days ahead of schedule.
However, crude sales volumes declined to 17.27 million barrels in March from 23.08 million barrels in February, suggesting logistical or export constraints during the period.
Operations were also affected by disruptions, including a leak on the Trans Forcados Pipeline that led to outages across several assets between February 20 and March 25.
Despite these challenges, the company said overall output improved month-on-month, supported by operational efficiencies and ongoing recovery efforts.
NNPC’s financial performance comes against the backdrop of broader reforms in Nigeria’s oil sector aimed at improving accountability and boosting government revenues.
Between January and December 2025, the company remitted N14.706 trillion to the federation, underlining its central role in public finances.
Nigeria’s oil-dependent economy relies heavily on such remittances to fund government spending, making NNPC’s performance a key indicator of fiscal health.
The company also reported progress on strategic infrastructure, including the Ajaokuta-Kaduna-Kano (AKK) gas pipeline, where welding of a 24-inch spur line to the Gwagwalada Independent Power Plant has been completed, alongside advances in pre-commissioning works on the mainline.
Industry data shows that Nigeria’s crude oil production has been recovering, with output rising to around 1.84 million barrels per day in recent months, according to the Nigerian Upstream Petroleum Regulatory Commission.
The increase reflects efforts to address oil theft, pipeline vandalism and operational inefficiencies that have constrained production in recent years.
NNPC remains a dominant player across Nigeria’s oil and gas value chain, spanning upstream exploration, midstream infrastructure and downstream distribution.