The Nigerian National Petroleum Company (NNPC) Limited has posted a profit after tax of ₦535 billion for June 2026, representing a 15.8% month-on-month growth from ₦462 billion recorded in May.

According to the state-owned energy firm’s latest monthly financial and operations report, overall revenue for June hit ₦4,389 billion (₦4.38 trillion), driven by resilient international crude pricing, improved trading margins, and sustained commercial gas deliveries.

The report also revealed that NNPC’s cumulative statutory payments to the Federation Account reached ₦6,286 billion (₦6.28 trillion) for the first half of 2026 (January–June), highlighting the company’s continuing role as the primary financial anchor for Nigeria’s federal, state, and local government budgets.

Crude Oil Output Dips Amid Technical Headwinds

Despite strong financial performance, upstream liquid hydrocarbon production experienced a minor setback:

• Daily Output: Average crude oil and condensate production dropped slightly to 1.72 million barrels per day (mbpd) in June, down from 1.73 mbpd recorded in May.
• Key Drivers: NNPC attributed the marginal drop to localized operational disruptions, subsurface reservoir challenges, and facility integrity maintenance across selected onshore and shallow-water assets.
• Outlook: Security interventions and pipeline surveillance in the Niger Delta continue to protect bulk evacuation routes, preventing major output crashes seen in previous years.

Gas Production Gains Momentum

In line with Nigeria’s “Decade of Gas” initiative, natural gas production maintained an upward trajectory:

• Production Volume: Gas output rose to 7,841 million standard cubic feet per day (mmscf/d) in June, a 0.86% increase from the 7,774 mmscf/d produced in May.
• Commercial Impact: Increased gas supply supported domestic power generation plants and industrial consumers while meeting export commitments for Liquefied Natural Gas (LNG).

Key Infrastructure Progress: OB3 and AKK Pipelines

The June report provided updates on two critical transnational gas trans-national trunk lines expected to transform domestic energy distribution:

1. Obiafu-Obrikom-Oben (OB3) Gas Pipeline

• Status: 98% completion
• Milestone: Final tie-in operations and river-crossing engineering works are currently underway.
• Target: On track to achieve First Gas in August 2026. Once operational, OB3 will bridge the gas supply gap between eastern gas fields and western industrial hubs, unlocking over 2 billion cubic feet of gas per day.

2. Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline

• Status: 94% completion
• Milestone: Construction, welding, and station installations have advanced across northern segments.
• Target: Remains on schedule for early gas delivery to Abuja in 2026, paving the way for commercial power plants, compressed natural gas (CNG) stations, and industrialization along the Abuja-Kaduna-Kano corridor.