Nigeria’s crude oil and condensate production declined to an average of 1.51 million barrels per day (mbpd) in February 2026, even as the Nigerian National Petroleum Company Limited (NNPC Ltd) recorded a significant surge in statutory remittances, paying ₦1.804 trillion into the Federation Account.
According to the company’s February Monthly Report Summary released on April 11, 2026, the drop in oil output was primarily driven by operational disruptions across key assets. These included the Trans Forcados Pipeline outage caused by integrity issues, startup challenges at Stardeep Agbami GTC 2 and 3 following turnaround maintenance, delays at the Sterling Oguali flow station, and sludge management constraints at Enyie wells.
The report noted that despite sustained efforts to stabilize production, these operational setbacks significantly impacted February’s output performance. The Trans Forcados Pipeline—one of Nigeria’s major crude evacuation channels—played a critical role in the decline, highlighting ongoing infrastructure vulnerabilities in the upstream sector.
However, NNPC Ltd emphasized that asset reliability improvements, faster crude evacuation solutions, and enhanced collaboration with operators are already underway to restore production levels and strengthen resilience across oil infrastructure.
In contrast to the production dip, financial performance showed notable strength:
- Total revenue increased to ₦2.68 trillion, up from ₦2.57 trillion in January 2026
- Statutory remittances surged to ₦1.804 trillion, a sharp rise from ₦726 billion in January
- Profit After Tax (PAT) declined to ₦136 billion, compared to ₦385 billion in the previous month
The increase in remittances reflects ongoing fiscal reforms aimed at boosting transparency and accountability in Nigeria’s oil and gas sector.
A key driver behind the improved remittance performance is a recent Executive Order signed in February 2026 by Bola Tinubu.
The directive introduced sweeping reforms to Nigeria’s oil revenue framework, including:
- Suspension of management and frontier exploration fees previously retained by NNPC Ltd
- Mandatory full remittance of oil and gas revenues to the Federation Account
- Establishment of an inter-agency implementation committee, chaired by the Minister of Finance and Coordinating Minister for the Economy
These measures are designed to align revenue flows with constitutional provisions while strengthening fiscal discipline across the sector.
The report also highlighted progress on the Ajaokuta–Kaduna–Kano (AKK) Gas Pipeline, a flagship infrastructure project expected to enhance domestic gas supply.
NNPC Ltd confirmed ongoing construction and installation activities aimed at delivering early gas supply to Abuja, positioning the project as a critical enabler of Nigeria’s gas-to-power and industrialization agenda.
While February’s output decline underscores persistent operational challenges, NNPC Ltd maintains that ongoing interventions—ranging from infrastructure upgrades to policy reforms—are laying the groundwork for recovery.
The combination of stronger revenue performance, policy-driven transparency, and strategic gas infrastructure development signals a cautiously optimistic outlook for Nigeria’s energy sector in the months ahead.
