The Nigerian National Petroleum Company Limited (NNPC Ltd.) recorded N2.68 trillion in revenue for February 2026, up 4.2 per cent from N2.57 trillion in January. Despite the revenue gain, profit after tax fell sharply by 64.67 per cent to N136 billion, down from N385 billion the previous month. This decline coincided with a 148.48 per cent increase in remittances to the Federation Account, which rose to N1.8 trillion in February from N726 billion in January. The surge in payments followed a presidential directive removing the 30 per cent profit retention allowance previously granted to NNPC Ltd. for oil and gas operations. Crude oil and condensate sales volumes dropped by 10.36 per cent to 23.08 million barrels in February, compared to 25.75 million barrels in January. Average daily oil production also declined, falling to 1.51 million barrels per day from 1.64 million barrels per day. Gas production, however, saw a 2.4 per cent rise, increasing to 7,458 million standard cubic feet per day from 7,283 million standard cubic feet per day in January.
NNPC Ltd.'s dramatic 64.67 per cent profit drop to N136 billion in February 2026, despite a revenue increase, exposes the immediate financial impact of the presidential directive to end its 30 per cent profit retention. The decision directly enabled a near doubling of the company's remittance to the Federation Account, which jumped to N1.8 trillion—funds now flowing to the treasury instead of being reinvested or reserved by the firm.
This shift reflects a broader recalibration of NNPC Ltd.'s role under current economic directives: less autonomy in capital retention, more emphasis on immediate fiscal contribution. While gas production rose slightly, the drop in oil output—from 1.64 million to 1.51 million barrels per day—undermines revenue sustainability, especially as global prices remain volatile. The company is effectively being asked to prioritise short-term national revenue over operational flexibility.
For Nigerians, particularly those in energy-dependent sectors, this means NNPC Ltd. may have less internal capital to maintain infrastructure or stabilise fuel supply during disruptions. Reduced reinvestment capacity could affect downstream reliability, potentially feeding into distribution hiccups or price adjustments.
This move fits a growing pattern of centralising control over state-owned enterprises, aligning their financial flows with immediate budgetary needs rather than long-term corporate resilience.
