Nigeria’s state-owned oil giant, NNPC Limited, posted a profit after tax of N2.28 trillion for the first half of 2026, marking a 35.4% decline from the N3.53 trillion recorded during the same period in 2025. Although the drop highlights a slower earnings performance compared to last year’s exceptional results, the company maintained profitability throughout the six-month period. Financial data reviewed from NNPC’s monthly performance reports also revealed that the company ended the first half on a stronger note, recording its highest monthly profit of the year in June.
The company’s earnings followed a mixed trajectory in the first half of 2026. Profit stood at N385 billion in January before falling sharply to N136 billion in February, the weakest monthly performance during the period. However, NNPC gradually regained momentum, posting N276 billion in March, N481 billion in April, N462 billion in May, and reaching N535 billion in June. This steady improvement suggests that the company successfully strengthened its financial position as production levels increased and operational performance improved.
Despite the recovery, NNPC’s earnings remained well below the record-breaking figures achieved in the first half of 2025. That year, the company experienced dramatic swings, including losses in January and March, but delivered exceptionally strong profits between April and June, helping it accumulate N3.53 trillion in six months. The difference of approximately N1.25 trillion between both periods reflects the more challenging operating environment in 2026, even as the company continued to generate healthy returns.
Revenue performance, however, painted a more encouraging picture. NNPC generated N2.57 trillion in revenue in January, rising steadily to nearly N5 trillion in April before closing June at N4.39 trillion. At the same time, crude oil and condensate production climbed from 1.64 million barrels per day in January to 1.72 million barrels per day in June, with May recording the year’s highest production level of 1.73 million barrels per day. The improved output came amid fluctuating global crude oil prices driven by geopolitical tensions and changing market conditions, reinforcing the importance of consistent production in sustaining future earnings.
Beyond profitability, NNPC remitted N6.29 trillion to the Federation Account between January and June 2026, down from N8.16 trillion during the same period in 2025. The lower statutory payments mirror the company’s softer earnings despite stronger production levels. Industry analysts believe NNPC’s financial outlook for the remainder of 2026 will depend largely on its ability to maintain higher crude output, minimize operational disruptions such as oil theft and pipeline vandalism, and capitalize on favorable market conditions. With Nigeria recently surpassing its OPEC production quota for two consecutive months, sustained production growth could provide the momentum needed to improve the company’s performance in the months ahead.
source: nairametrics
