The Nigerian National Petroleum Company Limited (NNPC) reported a profit after tax (PAT) of N535 billion in June 2026, its strongest monthly earnings in 10 months, as higher revenue and improved natural gas production helped offset a slight decline in crude oil output.
According to the company’s June 2026 Monthly Financial and Operations Report, the profit represents a 15.8% increase from the N462 billion recorded in May and is the highest monthly profit since August 2025, when the national oil company posted N539 billion.
The latest performance comes against a backdrop of relatively firm global oil prices during June, driven by geopolitical tensions in the Middle East, which supported earnings for oil producers worldwide.
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NNPC generated N4.39 trillion in revenue during June, underscoring the company’s continued importance to Nigeria’s public finances.
The report also showed that cumulative statutory payments to the Federation reached N6.29 trillion in the first six months of 2026, reinforcing NNPC’s role as one of the federal government’s largest revenue contributors at a time when authorities are seeking to strengthen fiscal buffers and reduce dependence on borrowing.
The June profit also signals a continued recovery in the company’s financial performance after earnings weakened earlier in the year.
NNPC’s profitability has been volatile over the past year, reflecting changing oil market conditions, production levels and operational challenges.
After recording N539 billion in profit in August 2025, earnings fell sharply to N216 billion in September before recovering to N447 billion in October and N502 billion in November.
Profit eased to N351 billion in December and rose slightly to N385 billion in January 2026 before plunging to N136 billion in February, the weakest monthly performance during the period.
Since then, the company has steadily recovered, posting N276 billion in March, N481 billion in April, N462 billion in May and N535 billion in June.
The June result represents a N399 billion improvement from February’s low point, suggesting stronger operational performance and a more favorable pricing environment.
Oil Production Slips Marginally
Despite the stronger financial performance, crude oil production remained broadly unchanged. Average crude oil and condensate production stood at 1.72 million barrels per day (mbpd) in June, marginally lower than the 1.73 million barrels per day recorded in May.
The company attributed the slight decline to operational disruptions, facility integrity challenges and subsurface issues affecting several producing assets.
Although the reduction was modest, Nigeria continues to face challenges in raising crude production to levels required to maximize export earnings and meet budget assumptions. Sustained improvements in production remain critical for increasing foreign exchange inflows and supporting government revenues.
In contrast to crude production, natural gas output increased during the month.
Gas production rose to 7.841 million standard cubic feet per day (mmscf/d) in June from 7.774 million mmscf/d in May, representing a 0.86% month-on-month increase.
The continued expansion of gas production aligns with Nigeria’s strategy of positioning natural gas as a key driver of energy security, industrial development and export growth while supporting the country’s energy transition objectives.
Gas has become an important segment of NNPC’s business as Nigeria seeks to monetize its vast reserves through domestic power generation, industrial use and liquefied natural gas exports.
The report showed continued progress on two of Nigeria’s most strategic gas infrastructure projects.
The Obiafu-Obrikom-Oben (OB3) Gas Pipeline reached 98% completion, with final tie-in activities underway ahead of targeted first gas in August 2026.
Meanwhile, construction of the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline advanced to 94% completion.
NNPC said the AKK project remains on track to support the delivery of natural gas to Abuja later this year before extending supplies further north.
Both projects are central to Nigeria’s “Decade of Gas” strategy, which aims to expand domestic gas utilization, improve electricity supply, stimulate industrial development and reduce reliance on imported fuels.
Outlook
NNPC’s June performance is seen as another indication that the state-owned company, notorious for operating at a loss for decades, is increasingly becoming profitable, even as crude production remains below long-term targets.
The combination of stronger global oil prices, rising gas production and continued progress on major infrastructure projects has supported profitability, while statutory payments continue to provide significant revenue to the Federation.
Looking ahead, energy analysts note that sustaining profit growth will depend on several factors, including improvements in crude oil production, the successful completion of the OB3 and AKK pipelines, continued expansion of domestic gas infrastructure and the trajectory of international oil prices.