KEY POINTS
- NNPC revenue fell to N3.09tn in July from N4.39tn in June.
- Oil and condensate output dropped to 1.68 million barrels per day.
- NNPC’s profit fell to N279bn, while statutory remittances reached N7.91tn.
The Nigerian National Petroleum Company Limited, NNPC, recorded a significant decline in revenue in July 2026 as lower crude oil production and operational disruptions affected its financial performance.
According to NNPC’s latest monthly operational and financial performance report released on Wednesday, the company generated N3.09tn in revenue during July, representing a decline of about N1.3tn from the N4.39tn recorded in June.
The drop in revenue was accompanied by a sharp reduction in profit after tax. NNPC’s profit fell from N535bn in June to N279bn in July, a decline of N256bn in a single month.
The figures highlight the impact that production challenges continue to have on the performance of Nigeria’s state-owned oil company and the wider petroleum sector.
NNPC reported that combined crude oil and condensate production fell to 1.68 million barrels per day in July, compared with 1.72 million barrels per day in June.
The company attributed the decline to several operational challenges across its upstream assets.
According to NNPC, the disruptions included facility outages, equipment unavailability, pipeline incidents and other production constraints.
“July crude oil production was affected by a combination of operational disruptions across several assets, including facility outages, equipment unavailability, pipeline incidents, and production constraints,” the company stated.
The lower production level also affected the volume of crude and condensate available for sale during the month.
Crude and condensate sales drop sharply
NNPC’s crude oil and condensate sales declined considerably in July, falling to 22.53 million barrels from 28.23 million barrels in June.
The July sales consisted of 21.53 million barrels of crude oil and one million barrels of condensate.
The reduction in sales volumes further contributed to the decline in the company’s monthly revenue, coming at a time when NNPC was already dealing with production interruptions across several assets.
NNPC said it was implementing a series of measures aimed at restoring production levels, improving operational efficiency and reducing unplanned disruptions. The national oil company said its production improvement strategy would focus on maintaining higher facility uptime through preventive maintenance and reducing unexpected downtime.
It also listed several operational measures designed to improve production and export performance.
These include optimising export operations at FEPL and Nembe EP, developing incremental production opportunities across its portfolio and strengthening the reliability of critical facilities.
NNPC further said tandem offloading operations had been activated at Akpo and Erha to provide greater flexibility in crude exports.
The company also plans to restore barging operations at Obodo to improve the evacuation of crude and help sustain production. The challenges were not limited to crude oil.
NNPC reported that natural gas production also declined in July, falling to 7.49 billion standard cubic feet per day from 7.8 billion standard cubic feet per day in June.
The reduction adds pressure to efforts to expand Nigeria’s gas production and strengthen domestic gas supply, particularly as the country continues to pursue greater use of natural gas for power generation, industrial activity and other economic purposes.
