Nigerian National Petroleum Company Profit Plunges
Analysis based on 7 articles · First reported Apr 11, 2026 · Last updated Apr 12, 2026
The decline in Nigerian National Petroleum Corporation===Nigerian National Petroleum Company Limited's profit after tax and crude oil production, despite increased revenue, indicates operational inefficiencies and higher statutory payments to the Federal Government of Nigeria. This could lead to concerns about the company's profitability and Nigeria's ability to meet its oil production targets, potentially affecting investor sentiment in the energy sector.
The Nigerian National Petroleum Corporation===Nigerian National Petroleum Company Limited reported a significant 64.67% decline in profit after tax to N136 billion in February 2026, despite a 4.2% increase in revenue to N2.68 trillion. This sharp drop in profitability was primarily due to a presidential directive from Bola Ahmed Tinubu removing the 30% profit retention, leading to a 148.48% surge in statutory remittances to the Federal Government of Nigeria, reaching N1.804 trillion. Crude oil and condensate production also fell to 1.51 million barrels per day from 1.64 million barrels per day in January, attributed to operational challenges including an outage of the Trans-Forcados Pipeline due to integrity issues, start-up challenges at Stardeep Agbami GTC 2 and 3, and delays at Sterling Oguali flow station. Despite these setbacks, gas production remained strong, and key gas pipeline projects like the Ajaokuta-Kaduna-Kano Gas Pipeline and Obiafu-Obrikom-Oben Gas Pipeline are nearing completion, aiming to boost domestic gas supply. The Nigerian National Petroleum Corporation===Nigerian National Petroleum Company Limited remains crucial for Nigeria's government finances.
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