By Rareview Energydesk
Nigeria’s state oil company, Nigerian National Petroleum Company Limited (NNPC Ltd), recorded a profit after tax of N276 billion in March 2026, underpinned by a modest rebound in crude production and sustained gas output, even as infrastructure constraints and pipeline outages continued to weigh on operations.
The figures, contained in the company’s latest monthly report published on its website, show revenue of N2.77 trillion for the period, alongside statutory payments of N2.89 trillion in the first quarter of the year—an indication of the company’s growing fiscal footprint within Nigeria’s public finance architecture.
Crude oil and condensate production averaged 1.56 million barrels per day (mbopd) in March, a recovery from the previous month, driven largely by the early completion of maintenance work at the Bonga deepwater field. The turnaround maintenance was delivered 12 days ahead of schedule, helping to stabilise output across key assets.
However, the gains were tempered by renewed disruptions along critical export infrastructure. A leak at the Keremor axis of the Trans Forcados Pipeline triggered an outage that curtailed production between late February and late March, underscoring the persistent vulnerability of Nigeria’s oil logistics network.
Industry analysts say such incidents continue to define the sector’s performance envelope. “What we are seeing is a pattern of incremental recovery constantly checked by structural bottlenecks—pipeline integrity, theft, and deferred maintenance,” said an Abuja-based energy consultant familiar with NNPC’s operations.
Upstream pipeline availability stood at 76 per cent during the period, reflecting these ongoing constraints.
In contrast to the volatility in crude, gas production remained relatively robust, averaging 7,731 million standard cubic feet per day (mmscf/d). This steady performance reinforces gas’ growing role as a stabilising pillar in NNPC’s portfolio, particularly as Nigeria pushes its “Decade of Gas” strategy.
Progress on major gas infrastructure projects also continued. The Ajaokuta-Kaduna-Kano (AKK) pipeline recorded 93 per cent completion, while the Obiafu-Obrikom-Oben (OB3) pipeline reached 96 per cent completion.
Crude oil and condensate sales showed mixed trends, reflecting both operational disruptions and market conditions. Gas sales maintained an upward trajectory, signalling stronger demand in both domestic and export markets.
Meanwhile, downstream performance remained uneven, with petrol availability at NNPC retail stations at 56 per cent nationwide.
The N2.89 trillion in statutory remittances between January and March highlights NNPC’s continued role as a major revenue engine for government, particularly at a time of fiscal strain.
NNPC said it would continue to strengthen production resilience through targeted restoration plans, focusing on asset reliability and resolving evacuation constraints.
The broader outlook for Nigeria’s oil and gas sector remains a balance between reform-driven optimism and operational reality. While improved maintenance cycles, advancing gas infrastructure, and modest output recovery signal progress, recurring pipeline failures and distribution inefficiencies continue to cap performance. For a company now positioned as both a commercial entity and a national economic anchor, the challenge is not merely to post profits—but to sustain them in an environment where every gain remains contested by systemic risk.