By Rareview Energydesk
Nigerian National Petroleum Company Limited reported a profit after tax of N385 billion in January 2026, as Nigeria’s crude oil and condensate production rose to 1.64 million barrels per day (mbpd), according to the company’s latest monthly operational report.
The January report showed the energy firm generated N2.571 trillion in revenue during the month and remitted N726 billion in statutory payments to the federation.
Despite the profit growth, the figures revealed a sharp 47 per cent decline in revenue, which fell from N4.82 trillion recorded in December 2025.
The report attributed the improved production largely to the completion of maintenance activities at key offshore facilities, including the Agbami oil field, as well as operational improvements across upstream assets.
“Production increased month-on-month following the completion of Turn Around Maintenance at Agbami and Renaissance (Estuary Area – EA),” the company stated.
Nigeria’s crude and condensate output rose from 1.55mbpd in December to 1.64mbpd in January, representing an increase of about 5.8 per cent month-on-month.
The rebound signals a partial recovery from the production slowdown recorded in the final quarter of 2025, when output had slipped to around 1.54mbpd in October before edging up slightly towards year-end.
However, the company acknowledged that operational challenges continued to affect crude delivery volumes.
“Despite the improved production profile, planned deliveries for January were reduced due to adverse weather conditions, evacuation constraints, and asset integrity challenges across some production corridors,” the report said.
Natural gas production also improved during the period, rising to 7,283 million standard cubic feet per day (mmscf/d) from 6,914mmscf/d recorded in December, representing a 5.3 per cent increase.
Gas sales followed a similar trajectory, with the company reporting 4,978mmscf/d in sales, one of the strongest performances within the past year.
Industry analysts say the rebound reflects stronger upstream performance following several months of volatility in 2025, when gas output had dropped sharply to 6,284mmscf/d in September before gradually recovering.
On the sales front, the report recorded 24.75 million barrels of combined crude and condensate sales in January, compared with 22.79 million barrels in December, supported by improved offshore production.
Nigeria’s crude output remains closely watched by both the government and international markets as the country attempts to stabilise production above 1.5mbpd after years of disruptions caused by oil theft, pipeline vandalism and underinvestment.
Despite the improvements in upstream operations, the report indicated that petrol availability across NNPC Retail Limited stations stood at 54 per cent nationwide in January.
The “wetness” indicator used by the company reflects the proportion of retail stations with petrol available for sale at any given time, highlighting continuing variations in supply levels across states.
Meanwhile, the report showed progress on major gas infrastructure projects designed to strengthen Nigeria’s domestic gas transportation network.
NNPC disclosed that work on the Ajaokuta–Kaduna–Kano (AKK) Gas Pipeline has reached 92 per cent completion, with pre-commissioning activities progressing across the main pipeline and associated facilities.
“Pre-commissioning activities on the AKK pipeline progressed significantly with major milestones achieved across the mainline, block valve stations, and intermediate pigging stations,” the company said.
Similarly, the Obiafu–Obrikom–Oben (OB3) Gas Pipeline project has reached 96 per cent completion, with drilling work at the Niger River crossing advancing according to schedule.
NNPC said the pipeline would significantly improve gas supply reliability for power plants and industrial consumers once completed.
The company also reported 96 per cent availability across upstream pipelines, suggesting improvements in asset reliability following intensified security and monitoring measures aimed at reducing disruptions from vandalism and technical faults.
Nigeria, Africa’s largest oil producer, has struggled in recent years to meet production targets under the Organization of the Petroleum Exporting Countries quota system, largely due to crude theft, ageing infrastructure and investment constraints.
While the latest figures suggest production is gradually stabilising, industry observers note that sustaining output above 1.6mbpd will require continued improvements in pipeline security, infrastructure maintenance and upstream investment.