Categories: Business

Oil output drops to 1.51mbpd in February as NNPC remits N1.8trn

Crude oil and condensate fell to an average of 1.51 million barrels per day (mbpd) in February 2026, as the Nigerian National Petroleum Company (NNPC) Limited remitted N1.804 trillion to the Federation Account.

The NNPC’s February monthly report summary released on Saturday, April 11, 2026, attributed the production dip to the Trans Forcados Pipeline outage due to integrity issues, startup challenges at Stardeep Agbami GTC 2 and 3 post-turnaround maintenance.

Others, according to the report, include delays at the Sterling Oguali flow station, and sludge management constraints at Enyie wells.

It said despite these hurdles, financial indicators strengthened, with total revenue rising to N2.68 trillion from N2.57 trillion in January, though Profit After Tax (PAT) declined to N136 billion in February, compared to N385 billion in January.

The report emphasised ongoing stabilisation efforts, including improved asset reliability, faster evacuation resolutions, and progress on the AKK gas pipeline to deliver early gas to Abuja, positioning the sector for potential recovery.

The report highlighted improvements across key financial and operational indicators.

It said: “Major highlights include total revenue rising to N2.68 trillion in February from N2.57 trillion in January.

“Statutory remittances surged to N1.804 trillion, up from N726 billion in the previous month, PAT stood at N136 billion, indicating improved profitability, and crude oil and condensate production averaged 1.51 million bpd in February.

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“NNPC’s improved remittance performance follows recent policy changes aimed at strengthening revenue transparency in the oil and gas sector.”.

On the AKK gas pipeline, the NNPC said it “progressed construction and installation works aimed at delivering early gas to Abuja”.

The NNPC highlighted the timely delivery of critical infrastructure as a key factor supporting production, and increased collaboration with operators and stakeholders has also contributed to production recovery across key assets.

In February 2026, President Bola Tinubu signed an executive order to overhaul revenue remittance practices.

The directive suspended the collection of management and frontier exploration fees by NNPC Limited.

It also mandated the full remittance of oil and gas revenues to the Federation Account.

The executive order also establishes an inter-agency implementation committee chaired by the Minister of Finance and Coordinating Minister for the Economy to ensure seamless execution.

These measures are part of broader reforms to align revenue flows with constitutional provisions and improve accountability.

Segun Ojo

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