NNPC REVENUE FALLS BY N636BN DESPITE STABLE OIL PRODUCTION

The Nigerian National Petroleum Company Limited (NNPC) recorded a significant revenue decline of N636 billion in the first quarter of 2026, despite maintaining relatively stable crude oil production levels, according to data released on Friday.

The drop, primarily attributed to lower international oil prices, weaker naira-dollar exchange rates, and reduced domestic refining output, has raised concerns about the company’s financial performance and its ability to meet national revenue targets. NNPC’s total revenue for the period stood at N3.2 trillion, down from N3.836 trillion in the corresponding period of 2025.

NNPC Group Chief Executive Officer, Mr. Mele Kolo Kyari, acknowledged the revenue shortfall but highlighted operational improvements in upstream activities. “While we achieved stable production averaging 1.4 million barrels per day, external market factors significantly impacted our bottom line. We are working to optimise costs and boost local refining capacity,” Kyari stated.

The report showed that crude oil export earnings were the hardest hit, declining due to global price volatility and production shut-ins in some fields. Domestic sales also suffered from lower refinery utilisation rates at the Port Harcourt, Warri, and Kaduna refineries.

Economists have warned that the persistent revenue shortfall could widen the fiscal deficit and increase government borrowing if not addressed. “NNPC remains a critical revenue earner for Nigeria. Sustained low earnings despite stable production point to deeper structural issues in the value chain that need urgent attention,” said Dr. Aisha Bello, a petroleum economist.

Stakeholders called for accelerated reforms, including full commercialisation of the refineries, improved pipeline security to reduce vandalism, and diversification of NNPC’s revenue streams beyond crude oil.

The Federal Government has assured that measures are being put in place to stabilise NNPC’s finances and maximise returns from the oil and gas sector. As Nigeria continues to navigate economic challenges, the performance of NNPC remains pivotal to fiscal sustainability and overall economic growth.