NNPC Revenue Falls 28.3% to N33.15tn in Nine Months as Federation Account Payments Reach N11.14tn

An analysis of NNPC’s monthly financial reports showed that the company generated N33.152tn between January and September 2026, compared with N46.257tn recorded during the corresponding period of 2025.

The difference represents a decline of approximately N13.11tn, or 28.3 per cent.

The figures indicate that the national oil company experienced considerable pressure on its revenue performance during the first nine months of the year, despite recording improvements in some operational indicators.

A breakdown of its monthly revenue showed that NNPC generated N2.571tn in January, N2.680tn in February and N2.774tn in March.

Revenue increased significantly in April to N4.971tn before declining to N4.335tn in May and N4.389tn in June.

The company subsequently recorded N3.087tn in July before recovering to N3.737tn in August and N4.608tn in September.

September’s performance represented the company’s strongest monthly revenue since April 2026.

Despite the improvement, the nine-month cumulative revenue remained considerably below the amount recorded in 2025.

September Revenue and Profit Show Improvement

NNPC’s September financial performance showed signs of recovery, with revenue increasing by approximately 23.3 per cent compared with the previous month.

The company generated N4.608tn in September, up from approximately N3.737tn recorded in August.

Its profit after tax also increased to N509bn from N431bn in August, representing an improvement of 18.1 per cent.

The increase in monthly profitability suggests that the company maintained its capacity to generate significant earnings despite the decline in cumulative revenue.

However, the September improvement has not yet translated into a recovery in its overall year-to-date revenue performance.

The company’s financial results are particularly important because NNPC remains a major contributor to Nigeria’s petroleum revenue and the government’s overall fiscal position.

Federation Account Payments Reach N11.14tn

Despite the decline in revenue, NNPC’s statutory payments to the Federation Account reached N11.14tn between January and September 2026.

This represented an increase of approximately N1.65tn, or 17.4 per cent, compared with the N9.49tn recorded between January and August.

The September payment therefore contributed significantly to the cumulative amount transferred to the federation.

However, when compared with the corresponding period of 2025, the company’s nine-month statutory payments were approximately N11.56tn.

This means that the 2026 payments were about N417bn, or 3.6 per cent, lower than the previous year’s figure.

The distinction between revenue and statutory payments is important. Revenue represents the company’s earnings from its business activities, while statutory payments represent amounts transferred to the Federation Account and other designated government obligations.

These payments are important to the distribution of public funds among the federal, state and local governments.

Oil and Gas Production Records Marginal Growth

Beyond its financial performance, NNPC reported improvements in total hydrocarbon production during September.

The company’s total hydrocarbon production increased to 3.04 million barrels of oil equivalent per day from 3.01 million barrels recorded in August.

Crude oil and condensate production averaged 1.70 million barrels per day during the month.

Natural gas production also reached 7,789 million standard cubic feet per day, compared with 7,680 million standard cubic feet per day in August.

The figures indicate that production activities recorded some improvements during the month, although the increase in output has yet to reverse the company’s cumulative revenue decline.

The company has continued to pursue operational improvements aimed at increasing production, reducing disruptions and strengthening the performance of its oil and gas assets.

Infrastructure Development Supports Gas Operations

NNPC also reported progress in its gas infrastructure projects.

One of the major developments was the commissioning and operationalisation of the Obiafu-Obrikom-Oben (OB3) Gas Pipeline following the completion of its River Niger crossing.

The pipeline is expected to strengthen gas transportation capacity and improve the movement of natural gas to consumers and industrial users.

The company also reported that the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline had reached approximately 95 per cent completion.

The project is considered important to Nigeria’s efforts to expand domestic gas distribution, improve electricity generation and support industrial development.

The Federal Government has continued to identify natural gas as an important component of its energy transition and economic diversification strategy.

Improved gas infrastructure could also create opportunities for businesses that depend on reliable energy supplies.

Revenue Performance Remains a Key Concern

NNPC’s latest financial figures highlight the difference between its monthly recovery and its broader revenue performance in 2026.

Although September delivered higher revenue and profit, the company’s earnings for the first nine months remained 28.3 per cent below the corresponding period in 2025.

The decline raises questions about the factors affecting revenue generation, including crude oil prices, production volumes, sales performance and operational costs.

For the Federation Account, the company’s statutory payments remain an important source of government revenue, making its financial performance relevant to public spending and fiscal planning.

Going forward, sustained improvements in production, pipeline availability and gas infrastructure will be important to strengthening NNPC’s financial position.

The September report therefore presents a mixed picture: lower cumulative revenue, improved monthly profitability, higher September production and significant statutory contributions to the Federation Account.

The company’s performance in the remaining months of 2026 will be important in determining whether the September recovery can translate into stronger full-year financial results.

Key Figures at a Glance