The Nigerian National Petroleum Company Limited (NNPC Ltd.) paid N6.286 trillion into the Federation Account between January and June 2026, according to its latest financial and operational report.
The company disclosed that the amount represents about 42.7 per cent of the N14.706 trillion it transferred to the Federal Government throughout 2025, suggesting that full-year remittances could be lower than last year’s figure if the current pace continues.
NNPC’s June 2026 report also showed stronger financial performance for the month, with revenue rising to N4.389 trillion and profit after tax increasing to N535 billion, compared to N462 billion recorded in May.
The report attributed statutory payments to factors such as operating expenses, debt obligations, tax payments, exchange rate movements and investments in strategic projects.
On production, average crude oil and condensate output eased slightly to 1.72 million barrels per day in June from 1.73 million barrels per day in May. The company linked the decline to operational challenges, facility maintenance issues and subsurface constraints at some producing assets.
NNPC also announced progress on two major gas infrastructure projects. The Obiafu-Obrikom-Oben (OB3) Gas Pipeline is now 98 per cent complete, with final connection works ongoing ahead of the planned commencement of gas supply in August. Meanwhile, the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline has reached 94 per cent completion, with gas delivery to Abuja expected before the end of the year.
The update follows a strong 2025 financial year in which the national oil company generated N60.5 trillion in revenue, posted N5.76 trillion in profit after tax and remitted N14.706 trillion to the Federal Government.
Commenting on the figures, energy law expert Prof. Dayo Ayoade said reforms introduced through Executive Order 9 of 2026 could support stronger government earnings by ensuring petroleum revenues are transferred directly to the Federation Account while removing some deductions previously retained by the company.
He added that improvements in operational efficiency, transparency and cost management could further enhance NNPC’s financial performance. However, he noted that global oil price volatility, driven partly by geopolitical tensions, as well as operational risks such as pipeline vandalism and crude theft, could still influence the company’s earnings before the end of the year.
Ayoade also observed that uncertainty surrounding the country’s refineries remains a challenge despite improvements in other aspects of the company’s operations.
