By Charles Ebi
Nigerian National Petroleum Company ,NNPC, Limited remitted N3.714tn to the Federal Government as statutory payments in the first four months of 2026, even as the state-owned energy company recorded a profit margin of less than 10 per cent despite generating nearly N13tn in revenue during the period.
An analysis of the company’s monthly report summaries for January to April 2026 showed that NNPC generated cumulative revenue of N12.996tn and recorded a Profit After Tax ,PAT, of N1.278tn, representing a net profit margin of approximately 9.8 per cent.
The figures highlight the company’s continued role as one of the Federal Government’s largest revenue contributors while also underscoring the significant impact of statutory obligations, operational expenses and legacy liabilities on its profitability.
The monthly reports showed that revenue rose steadily throughout the period. NNPC generated N2.571tn in January, N2.680tn in February and N2.774tn in March before recording a sharp increase to N4.971tn in April, the highest monthly revenue so far in 2026.
Profitability, however, remained relatively modest compared to the scale of earnings. The company posted a profit after tax of N385bn in January, which dropped to N136bn in February before recovering to N276bn in March and rising further to N481bn in April.
Despite the strong revenue performance, the less-than-10-per-cent profit margin suggests that a substantial portion of the company’s earnings was absorbed by statutory payments, operating expenses and other financial commitments.
NNPC’s statutory remittances to the government totalled N3.714tn during the four-month period, accounting for a significant share of its overall revenue.
The payments reflect the company’s strategic importance to government finances at a time when public revenues remain under pressure.
The company’s operational performance also improved during the review period, particularly in crude oil production.
Total crude oil and condensate production was estimated at approximately 191.88 million barrels between January and April, based on average daily production figures contained in the monthly reports.
Daily crude oil production stood at 1.64 million barrels in January before declining to 1.51 million barrels per day in February.
Output recovered to 1.56 million barrels per day in March and climbed to 1.68 million barrels per day in April, representing the highest production level recorded by the company this year.
Natural gas production also remained resilient throughout the period. The company produced an estimated 906.16 billion standard cubic feet ,BSCF, of gas between January and April.
Daily gas production increased from 7.283 BSCF in January to 7.454 BSCF in February, rising further to 7.731 BSCF in March before settling marginally at 7.730 BSCF in April.
According to the report, production levels were influenced by a combination of operational improvements and infrastructure-related constraints.
While the completion of turnaround maintenance enhanced output at some facilities, operations were also affected by infrastructure integrity challenges, including the Trans Forcados Pipeline outage and asset-specific leakages recorded during the first quarter.
Nevertheless, NNPC said continuous efforts to improve asset reliability, restore production facilities and resolve crude evacuation constraints helped sustain oil and gas output during the period.
The company also reported steady progress on several strategic gas infrastructure projects designed to support Nigeria’s energy transition and domestic gas utilisation agenda.
Among the key milestones was continued work on the Ajaokuta-Kaduna-Kano .AKK. gas pipeline project, one of the country’s largest gas infrastructure investments. NNPC also announced the successful completion of the River Niger crossing on the Obiafu-Obrikom-Oben ,OB3, gas pipeline, a major engineering milestone expected to enhance gas transportation across the country.
NNPC’s financial performance comes as the company continues its transition from a government corporation to a commercially driven enterprise following the implementation of the Petroleum Industry Act (PIA), which transformed the former Nigerian National Petroleum Corporation into NNPC Limited in 2022.
The commercialisation of the company was intended to improve efficiency, transparency and profitability while enabling it to compete with leading international energy companies.
However, despite the reforms, NNPC continues to grapple with several structural challenges, including ageing infrastructure, legacy debts, refinery-related liabilities and operational inefficiencies that continue to weigh on its financial performance.
Last year, the Federal Government approved the write-off of more than $1.4bn and trillions of naira in historical obligations owed by the company as part of efforts to clean up its balance sheet and strengthen its commercial operations.
The latest financial results indicate that while NNPC has maintained strong revenue generation and remains a critical source of government income through taxes and statutory remittances, improving profitability remains a major challenge as it balances commercial objectives with national energy and fiscal responsibilities.
