Key points
- NNPC Limited posted a profit after tax of N2.28 trillion in the first half of 2026, down 35.4% from N3.53 trillion recorded in H1 2025.
- The company remained profitable throughout the six months, with June recording the highest monthly profit of N535 billion.
- Revenue rose significantly between April and June, supported by improved crude oil and condensate production.
- NNPC remitted N6.286 trillion to the Federation Account in H1 2026, lower than the N8.162 trillion remitted during the same period in 2025.
- Nigeria exceeded its OPEC production quota for the second consecutive month in June 2026 as crude oil output improved.
Main Story
NNPC Limited recorded a profit after tax of N2.28 trillion in the first half of 2026, representing a 35.4 per cent decline from the N3.53 trillion reported during the corresponding period of 2025.
The figures, obtained from the company’s monthly financial performance database and reviewed by Nairametrics, show that although earnings fell year-on-year by approximately N1.25 trillion, the national oil company sustained profitability throughout the first six months of the year.
The company’s monthly profit stood at N385 billion in January before dropping sharply to N136 billion in February, its weakest performance during the period. Earnings rebounded to N276 billion in March and climbed further to N481 billion in April.
Profit remained strong at N462 billion in May before reaching a six-month high of N535 billion in June, reflecting a steady improvement in financial performance as the year progressed.
The H1 2026 results, however, fell short of the exceptionally strong performance recorded in the same period of 2025, when NNPC generated cumulative earnings of approximately N3.53 trillion despite reporting losses in January and March.
Operational data also showed significant improvements in revenue and crude oil production during the review period.
NNPC generated N2.571 trillion in revenue in January with crude oil and condensate production averaging 1.64 million barrels per day (mmbopd). Revenue increased to N2.680 trillion in February despite production easing to 1.51 mmbopd, before rising to N2.774 trillion in March as production recovered to 1.56 mmbopd.
Revenue surged to N4.971 trillion in April on the back of improved production of 1.68 million barrels per day, while May revenue stood at N4.335 trillion as production reached 1.73 million barrels per day, the highest output recorded during the first half of the year.
In June, the company posted N4.389 trillion in revenue, supported by average crude oil and condensate production of 1.72 million barrels per day.
Despite the earnings recorded, statutory remittances to the Federation Account declined. NNPC remitted N6.286 trillion between January and June 2026, compared with N8.162 trillion during the corresponding period of 2025.
The improved production figures coincide with Nigeria’s recovery in crude oil output, with the country exceeding its OPEC production quota for the second consecutive month in June following sustained improvements in operational performance.
The Issues
- The 35.4 per cent decline in profit highlights continued pressure on NNPC’s earnings despite improved operational performance.
- Volatility in international crude oil prices remains a major risk to the company’s future profitability.
- Persistent challenges such as crude oil theft, pipeline vandalism, underinvestment and operational disruptions continue to threaten production sustainability.
- Lower statutory remittances to the Federation Account could affect government revenues and fiscal planning.
- Sustaining higher crude oil production remains critical to improving earnings and meeting Nigeria’s OPEC production targets.
What’s Being Said
NNPC Financial Performance Data
NNPC’s financial performance indicates that profitability strengthened steadily from March 2026, culminating in its strongest monthly earnings of N535 billion in June, despite recording significantly lower cumulative profits than the corresponding period of 2025.
Industry Insights
The company’s operational data suggests that sustained improvements in crude oil production and revenue growth helped cushion the impact of fluctuating global oil prices, although future earnings will depend on maintaining production levels and reducing operational disruptions.
What’s Next
NNPC is expected to sustain efforts to improve crude oil production, minimise pipeline disruptions and optimise revenue generation in the second half of 2026.
Industry observers will also monitor international crude oil prices, Nigeria’s compliance with OPEC production targets, statutory remittances to the Federation Account and the company’s ability to maintain the upward momentum recorded between March and June.
Bottom Line
Although NNPC remained profitable throughout the first half of 2026, its earnings fell sharply compared with the previous year. The company’s improving production levels and stronger monthly performance towards June provide positive signals, but sustaining higher output, managing operational risks and navigating volatile global oil markets will be critical to restoring stronger profitability.
