Nigeria’s national oil company, the Nigerian National Petroleum Company Limited (NNPC), recorded a significant decline in revenue in May 2026, raising fresh concerns about the financial pressures facing the country’s energy sector. According to the company’s latest Monthly Report Summary, revenue fell by N636 billion, dropping from N4.971 trillion in April to N4.335 trillion in May. Profit after tax also slipped from N481 billion to N462 billion, despite the company maintaining relatively stable crude oil and natural gas production throughout the month.
The report revealed that NNPC sustained crude oil and condensate production at 1.73 million barrels per day, while natural gas output stood at 7,774 million standard cubic feet per day. However, stable production was not enough to shield the company from declining earnings. Industry analysts point to market fluctuations, operational constraints, and production-related challenges as key factors that may have contributed to the weaker financial performance during the period.
Despite the revenue setback, NNPC highlighted ongoing efforts to improve operational efficiency and reduce production losses. The company reported a strong upstream pipeline availability rate of 98 percent and said it is actively addressing issues such as declining reservoir pressure, maintenance shutdowns, lifting constraints, and facility reliability concerns. These measures, according to the company, are expected to enhance asset performance, reduce production deferments, and support future output growth.
On the infrastructure front, NNPC announced major progress on two strategic gas projects considered crucial to Nigeria’s industrial and economic ambitions. The Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline has reached 94 percent completion and is expected to begin supplying gas to Abuja later this year. Meanwhile, the OB3 River Niger Crossing project has achieved 97 percent completion, with pre-commissioning and tie-in activities ongoing ahead of its planned commissioning by the end of the third quarter of 2026. These projects are expected to strengthen domestic gas supply, improve energy security, and support the Federal Government’s Decade of Gas initiative.
Beyond oil and gas operations, NNPC also showcased its contribution to healthcare development through the NNPC Foundation. The company recently donated a state-of-the-art 1.5 Tesla MRI system and supporting infrastructure to the Nnamdi Azikiwe University Teaching Hospital in Nnewi, Anambra State. The facility has already begun improving access to advanced diagnostic services in the South-East, reducing the need for patients to seek specialized medical care outside the region. As Nigeria continues its push to increase crude oil production beyond two million barrels per day, NNPC’s latest report highlights both the challenges confronting the sector and the strategic investments aimed at driving long-term economic growth.
source: punch
