Crude oil and condensate output declined to an average of 1.51 million barrels per day (mbpd) in February 2026, even as the Nigerian National Petroleum Company Limited significantly increased its remittances to the Federation Account, reaching N1.804 trillion.
According to the company’s February Monthly Report Summary released on Saturday, the drop in production was largely due to disruptions at key infrastructure points.
These included an outage on the Trans Forcados Pipeline caused by integrity concerns, as well as startup difficulties at the Stardeep Agbami GTC 2 and 3 facilities following post-turnaround maintenance.
Additional setbacks cited in the report were delays at the Sterling Oguali flow station and sludge handling challenges affecting operations at the Enyie wells.
Despite the operational constraints, the report noted stronger financial performance overall.
Total revenue increased to N2.68 trillion in February, up from N2.57 trillion recorded in January. However, Profit After Tax fell sharply to N136 billion, compared to N385 billion in the previous month.
The company pointed to ongoing efforts to stabilise operations, including measures to improve asset reliability, accelerate crude evacuation processes, and advance work on the AKK gas pipeline project, which is expected to deliver early gas supplies to Abuja.
These initiatives are seen as positioning the sector for a possible rebound.
The report also underscored improvements in both financial and operational metrics.
“Major highlights include total revenue rising to N2.68 trillion in February from N2.57 trillion in January.
“Statutory remittances surged to N1.804 trillion, up from N726 billion in the previous month, PAT stood at N136 billion, indicating improved profitability, and crude oil and condensate production averaged 1.51 million bpd in February.
“NNPC’s improved remittance performance follows recent policy changes aimed at strengthening revenue transparency in the oil and gas sector,” it said.
On the AKK gas pipeline, the company said it “progressed construction and installation works aimed at delivering early gas to Abuja”.
It further noted that the timely delivery of critical infrastructure remains essential to boosting production, while enhanced collaboration with operators and stakeholders has supported gradual recovery across key assets.
In February 2026, President Bola Tinubu signed an Executive Order introducing sweeping reforms to revenue remittance processes in the oil and gas sector.
The directive halted NNPC Ltd.’s collection of management and frontier exploration fees and required the full remittance of oil and gas revenues to the Federation Account.
It also created an inter-agency implementation committee, chaired by the Minister of Finance and Coordinating Minister for the Economy, to oversee the rollout of the reforms.
These steps form part of broader efforts to align revenue management with constitutional provisions and strengthen transparency and accountability in the sector.
