The Nigerian National Petroleum Company Limited (NNPC Ltd) recorded a significant drop in profitability in July 2026 as weaker crude oil and gas sales pushed its profit after tax down by 47.9 per cent.
The company’s profit after tax fell to N279 billion in July, compared with N535 billion reported in June, according to its July Monthly Report Summary released on Tuesday.
Revenue also declined substantially during the month, falling by 29.5 per cent from N4.38 trillion in June to N3.08 trillion.
NNPC attributed the weaker performance to declines in its crude oil, condensate and gas sales.
The company sold 22.53 million barrels of crude oil and condensate in July, representing a 20.2 per cent decline from the 28.23 million barrels sold in June.
Gas sales also recorded a downturn, falling 7.8 per cent from 4.97 mmscfd in June to 4.58 mmscfd in July.
Despite the decline in its monthly financial performance, NNPC said it remitted N7.91 trillion to the Federation Account between January and July 2026.
Production also falls
The company’s crude oil and condensate production dropped by 2.3 per cent during the period under review.
NNPC reported an average production of 1.68 million barrels per day in July, down from 1.72 million bpd in June.
Of the July output, crude oil accounted for 1.44 million bpd, while condensate contributed 240,000 bpd. In June, crude production stood at 1.47 million bpd, while condensate output was 250,000 bpd.
This represents a two per cent decline in crude oil production and a four per cent drop in condensate production.
Natural gas production also decreased by 4.5 per cent, from 7.84 mmscfd in June to 7.48 mmscfd in July.
NNPC said it was implementing measures to reverse the production decline by improving facility uptime, strengthening preventive maintenance programmes and reducing unplanned shutdowns.
It said the strategy included optimising export operations at FEPL and Nembe EP, developing additional production opportunities across its portfolio and improving reliability at key facilities.
The company also plans to activate tandem offloading operations at Akpo and Erha to provide greater flexibility in crude exports.
NNPC said it would restore barging operations at Obodo as part of efforts to improve production evacuation and sustain output.
Pipeline availability remains strong
Despite the decline in production, NNPC reported that upstream pipeline availability remained at 100 per cent for the second consecutive month.
The Obiafu-Obrikom-Oben (OB3) pipeline also maintained 100 per cent availability, while the Ajaokuta-Kaduna-Kano (AKK) gas pipeline recorded 95 per cent availability.
On the AKK project, NNPC said construction and installation works for the early-gas component had reached an advanced stage, with the project expected to deliver gas to Abuja in 2026.
The company also announced that pre-commissioning activities on the OB3 River Niger Crossing Pipeline had been completed, paving the way for the commencement of first gas in August 2026.
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