Despite generating nearly N13tn in revenue within the first four months of 2026, the Nigerian National Petroleum Company (NNPC) Limited recorded a Profit After Tax (PAT) of N1.278tn, leaving its profit margin below 10 per cent.
An analysis of the company’s monthly financial reports from January to April 2026 showed that NNPC generated a cumulative revenue of N12.996tn but posted a net profit margin of approximately 9.8 per cent.
The financial performance reflects the enormous burden of statutory remittances, operational expenses and other financial obligations, which significantly reduced the company’s earnings despite its impressive revenue generation.
During the review period, NNPC remitted N3.714tn to the Federal Government as statutory payments, reaffirming its position as one of the country’s biggest contributors to public revenue.
Revenue grew consistently throughout the period.
The company generated N2.571tn in January, N2.680tn in February and N2.774tn in March before recording a sharp rise to N4.971tn in April, its highest monthly revenue so far in 2026.
Profitability, however, did not increase at the same pace. Profit after tax stood at N385bn in January before falling to N136bn in February. It later recovered to N276bn in March and climbed to N481bn in April.
The figures indicate that a substantial portion of the company’s earnings was absorbed by statutory remittances, operating expenses and other financial commitments.
Operationally, NNPC recorded improvements in crude oil production during the period.
The company produced an estimated 191.88 million barrels of crude oil and condensates between January and April.
Average daily production rose from 1.56 million barrels per day (mbpd) in March to 1.68 mbpd in April after dropping to 1.51 mbpd in February from 1.64 mbpd in January.
Natural gas production also remained strong, with total output estimated at 906.16 billion standard cubic feet (BSCF) during the four months under review.
Daily gas production increased steadily from 7.283 BSCF in January to 7.731 BSCF in March before closing marginally lower at 7.730 BSCF in April.
NNPC attributed its production performance to operational improvements, including turnaround maintenance at some facilities, while adding that infrastructure challenges such as the Trans Forcados Pipeline outage and asset leakages affected operations during the first quarter.
The company said continuous efforts to improve asset reliability, restore production facilities and resolve crude evacuation constraints helped sustain oil and gas production.
NNPC also reported progress on major gas infrastructure projects, including the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline and the successful completion of the River Niger crossing on the Obiafu-Obrikom-Oben (OB3) Gas Pipeline, both expected to strengthen gas transportation and support Nigeria’s energy transition.
The latest financial results come as NNPC continues its transformation into a commercially driven enterprise under the Petroleum Industry Act (PIA).
Although the company has maintained strong revenue generation and remains a critical source of government income through taxes and statutory remittances, its financial performance states the challenge of balancing commercial profitability with national energy and fiscal responsibilities amid ageing infrastructure, legacy debts and rising operational costs.