NNPC Profit Surges to N276bn in March on Higher Gas Production

The Nigerian National Petroleum Company Limited recorded a profit after tax of N276bn in March 2026, more than doubling its February earnings, driven by rising gas output and improved operational efficiency despite ongoing pipeline disruptions.

According to the company’s latest monthly report released on Monday, revenue rose to N2.77tn in March, a 3.51 per cent increase from the previous month. Crude oil and condensate production stood at 1.56 million barrels per day.

Gas production emerged as the strongest growth driver, climbing to 7,731 million standard cubic feet per day the highest level recorded in the past 12 months. The company noted month-on-month growth across key production metrics.

While crude oil output remained flat compared to February at 1.56 million barrels per day, it improved from the 1.51 million barrels per day recorded in January. Gas production has risen steadily over the first quarter, increasing from 7,281 mmscf/d in January to 7,458 mmscf/d in February before peaking in March.

NNPC attributed the improved production levels to operational efficiency, particularly at offshore assets, citing the early completion of the OML 118 Bonga Turnaround Maintenance, which was delivered 12 days ahead of schedule.

However, the company acknowledged that pipeline disruptions significantly affected output. The Trans Forcados Pipeline outage caused by a leak at the Keremor axis negatively impacted production volumes, leading to curtailments across several assets from February 20 to March 25.

Despite these setbacks, NNPC said it is implementing targeted recovery strategies to stabilise output, focusing on improving asset reliability and resolving evacuation constraints.

Crude oil sales dropped sharply to 17.37 million barrels in March, down from 22.85 million barrels in February and 25.75 million barrels in January, indicating persistent logistics challenges. On the gas side, sales increased to 5,059 mmscf/d, reinforcing the growing role of gas in Nigeria’s energy mix.

Profit after tax rose by approximately 102.94 per cent month-on-month. Cumulative statutory payments to the Federation reached N2.89tn between January and March 2026.

On infrastructure, NNPC highlighted progress on key gas pipeline projects. Welding of the 24-inch spur line to the Gwagwalada Independent Power Plant on the Ajaokuta-Kaduna-Kano Gas Pipeline has been completed, while significant progress has been recorded on outstanding mainline pre-commissioning works. Drilling operations continued as scheduled on the Obiafu-Obrikom-Oben Gas Pipeline River Niger Crossing.

Downstream indicators remained weak, with petrol availability at NNPC retail stations put at 56 per cent nationwide. The company cautioned that all production, sales and financial figures are provisional and subject to reconciliation.

The March performance reflects gradual recovery in Nigeria’s oil and gas sector, driven largely by improved asset management and growing gas output, although lingering infrastructure and supply chain challenges continue to pose risks to sustained growth.