KEY POINTS
- NNPC remitted N7.913tr to FAAC between January and July 2026.
- July crude and condensate output fell to 1.68m bpd due to operational disruptions.
- OB3 first-gas target appears delayed despite NNPC reporting 100% pipeline availability.
The Nigerian National Petroleum Company Limited, NNPC Ltd, remitted N7.913 trillion in statutory payments to the Federation Account between January and July 2026, even as disruptions across several production assets caused crude oil and condensate output to decline in July.
The figures were contained in NNPC Ltd’s July 2026 Monthly Report Summary, which showed that the national oil company continued to make a strong contribution to government revenue despite challenges affecting oil production.
The latest figures represent an increase of N1.627 trillion from the N6.286 trillion remitted between January and June.
NNPC also reported N3.087 trillion in revenue and N279 billion in profit after tax for July, indicating continued strong financial performance during the month.
NNPC’s statutory payment for July significantly increased its cumulative contribution to the Federation Account.
The N7.913 trillion total covers payments made during the first seven months of 2026 and comes amid Federal Government efforts to ensure that petroleum revenues due to the federation are transferred directly into the Federation Account.
The government had earlier directed through Executive Order 9 that relevant petroleum revenues be remitted directly to the Federation Account as part of efforts to strengthen public revenue collection and improve fiscal stability.
NNPC’s latest contribution therefore represents an important source of funding for the federation amid continued pressure on government finances.
Oil production falls to 1.68m barrels per day
While revenue remained strong, oil production weakened in July. NNPC reported combined crude oil and condensate production of 1.68 million barrels per day (bpd), down from 1.72 million bpd in June.
This represents a decline of about 2.3 per cent during the month. The July output comprised approximately 1.44 million bpd of crude oil and 240,000 bpd of condensate, compared with 1.47 million bpd of crude and 250,000 bpd of condensate in June.
The decline came after a period of improving production levels in Nigeria. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had reported that June crude oil production reached 1.56 million bpd, the highest level recorded since April 2020, while combined crude and condensate output was about 1.735 million bpd.
NNPC attributed the July decline to a combination of operational challenges across several production assets.
The company cited facility outages, equipment unavailability, pipeline incidents and other production constraints as factors that affected output during the month.
The disruptions highlight the continued vulnerability of Nigeria’s oil production to operational and infrastructure challenges, even as the sector seeks to increase output.
NNPC said it would focus on improving facility uptime through preventive maintenance and reducing unplanned downtime. Meanwhile, concerns are emerging over the status of the long-delayed Obiafu-Obrikom-Oben (OB3) gas pipeline after NNPC appeared to miss its previously stated August 2026 target for first gas.
In its July report, NNPC said the OB3 pipeline had achieved 100 per cent availability and that pre-commissioning activities at the Niger River Crossing had been completed. The company had indicated that first gas was expected in August.
However, with September now underway, NNPC had not publicly confirmed that gas transmission had commenced or announced a revised timeline for the pipeline’s commissioning, according to the report. The apparent delay has raised questions about what outstanding work may still be preventing the OB3 pipeline from entering full operational service.
The issue is particularly significant because the Niger River Crossing, one of the critical components of the project, was completed in April.
NNPC’s reported claim of 100 per cent availability has also heightened expectations that the pipeline should be ready for operation.
The absence of confirmation that first gas has commenced has therefore created uncertainty around the final stages of the project.
