NNPC SENDS N7.91TN TO FEDERATION ACCOUNT AS JULY REVENUE HITS N3.09TN

The Nigerian National Petroleum Company Limited remitted a total of N7.91 trillion to the Federation Account between January and July 2026, highlighting the continued contribution of the oil sector to government revenue despite fluctuations in crude production.

The figure was disclosed in NNPC’s July 2026 operational and financial performance report released on Wednesday. The report also showed that the national oil company generated N3.09 trillion in revenue during July and recorded a profit after tax of N279 billion for the month.

Despite the revenue performance, NNPC recorded a decline in crude oil and condensate production during the period. Output fell to 1.68 million barrels per day in July, compared with 1.72 million barrels per day in June and 1.73 million barrels per day in May.

The company attributed the July decline to operational challenges affecting several production facilities. According to NNPC, facility outages, equipment shortages, pipeline incidents and other production constraints contributed to the reduction in output.

The decline in production was also reflected in crude oil and condensate sales. NNPC reported that 22.53 million barrels were sold in July, comprising 21.53 million barrels of crude oil and one million barrels of condensate. This was lower than the 28.23 million barrels recorded in June.

In response to the production challenges, the company said it was implementing measures aimed at improving facility reliability and reducing unplanned downtime. The measures include stronger preventive maintenance programmes, optimisation of export operations and the development of additional production opportunities.

NNPC also disclosed plans to improve export flexibility through tandem offloading operations at the Akpo and Erha fields. It said barging operations at Obodo were also being restored to improve the evacuation of crude and sustain production levels.

The company's gas operations recorded significant activity during the month. Natural gas production stood at 7.49 billion standard cubic feet per day, while gas sales reached approximately 4.6 billion standard cubic feet per day.

On infrastructure development, NNPC reported that the Obiafu-Obrikom-Oben gas pipeline project had reached 100 per cent completion, while the Ajaokuta-Kaduna-Kano gas pipeline project stood at about 95 per cent. The company also reported 100 per cent availability of its upstream pipeline network.

NNPC said the completion of major gas infrastructure projects would support efforts to expand domestic gas utilisation and improve supplies for electricity generation and industrial activities. The company has also continued to pursue measures aimed at strengthening Nigeria's gas sector and increasing its contribution to the economy.

Meanwhile, the availability of NNPC Retail petrol stations stood at 52 per cent during July, according to the report. The company noted that the availability level varied across different regions.

NNPC stressed that the figures contained in its July report remain provisional and are subject to reconciliation with relevant stakeholders. Nevertheless, the N7.91 trillion remittance between January and July represents a significant contribution to the revenues available to the Federation during the seven-month period.

The latest figures come as Nigeria continues to seek higher oil and gas production, improved operational efficiency and stronger revenue generation from the petroleum industry.