NNPC Remits N2.89 Trillion to Federation Account in Q1 2026 as Oil Reforms Take Hold

The Nigerian National Petroleum Company Limited remitted N2.89 trillion ($2.11 billion) to the Federation Account in the first quarter of 2026, one of the clearest signs yet that sweeping oil-sector reforms are beginning to tighten revenue flows from a sector long plagued by opacity and leakages.

The figures were released in NNPC’s March 2026 operational performance summary on Monday. Monthly remittances rose sharply from N726 billion in January to N1.804 trillion in February before easing in March, bringing the quarterly total to N2.89 trillion. The February spike points to improved reconciliation of prior revenues rather than a one-off production surge.

On the profit side, NNPC reported a profit after tax of N276 billion in March — up 102 per cent from N136 billion in February. Revenue climbed to N2.774 trillion, a 3.5 per cent month-on-month increase.

Gas is emerging as the standout growth driver. Natural gas output hit 7,731 million standard cubic feet per day in March, the highest level recorded in the past twelve months, up from 7,458 mmscfd in February. Gas sales increased to 5,059 mmscfd, reflecting stronger domestic demand and the company’s deepening push into gas commercialisation as global energy markets shift toward cleaner fuels.

Crude oil and condensate production averaged 1.56 million barrels per day in March, slightly above February’s 1.51 million bpd but still well below Nigeria’s long-standing target of over 2 million bpd. Crude oil accounted for 1.32 million bpd, with condensate contributing 0.24 million bpd. Crude sales fell to 17.27 million barrels in March from 23.08 million barrels in February, suggesting continued export or logistical constraints.

The improved performance follows a February 2026 executive order by President Bola Tinubu that suspended NNPC’s management fees and frontier exploration deductions, mandated full remittance of oil and gas revenues, and introduced stricter oversight through an inter-agency committee. The directive represents a structural break from a system where the national oil company routinely retained significant portions of revenue from crude sales.

On the infrastructure front, NNPC reported completion of the spur line to the Gwagwalada Independent Power Plant on the Ajaokuta-Kaduna-Kano gas pipeline, and 96 per cent availability on the Obiafu-Obrikom-Oben pipeline. The company also completed the OML 118 Bonga Turnaround Maintenance 12 days ahead of schedule.

Downstream challenges remain. Petrol availability at NNPC retail stations stood at just 56 per cent in March, underscoring persistent distribution and supply constraints. With NNPC having remitted about N14.7 trillion in 2025, current quarterly trends suggest 2026 could deliver even stronger inflows — provided production climbs and reforms hold.

Sources: Business Insider Africa, New Telegraph, Nairametrics, Leadership