Abuja — The Nigerian National Petroleum Company Limited (NNPC) recorded a cumulative profit after tax of N1.74 trillion from a total revenue of N17.33 trillion for the five-month period spanning January to May 2026.

During this same interval, the company made total statutory payments to the Federation Account totalling N4.858 trillion, a THISDAY analysis of monthly operational summaries during the period indicated.

The NNPC serves as a pivotal revenue-generating entity for the federal government, a role that has undergone significant transformation following the Petroleum Industry Act of 2021.

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While it remains fully owned by the government, this shift aims to foster self-sustainability, efficiency, and greater transparency in its fiscal operations.

According to the review, the fiscal journey began in January 2026 with a revenue of N2.571 trillion and a profit after tax of N385 billion. By February, the company reported a revenue of N2.680 trillion, an increase of approximately 4.24 per cent, while profit after tax dipped to N136 billion, a decrease of 64.68 per cent.

March performance showed a revenue of N2.774 trillion, an increase of 3.51 per cent over February, and a profit recovery to N276 billion, a 102.94 per cent increase, the data showed.

However, the company experienced a significant fiscal surge in April, with revenue jumping to N4.971 trillion, a 79.20 per cent increase, and profit after tax rising to N481 billion, a 74.28 per cent increase.

In May, revenue moderated to N4.335 trillion, a 12.79 per cent decrease from April, while profit after tax settled at N462 billion, a 3.95 per cent decrease compared to the April figures.

Crude oil and condensate production trends were a central driver of these financial shifts. Output was 1.64 million barrels per day (bpd) in January, decreasing to 1.51 million bpd in February.

In March, production reached 1.56 million bpd. By April, production increased to 1.68 million bpd, increasing further to 1.73 million bpd in May, as the company addressed reservoir pressure decline, and other issues.

Besides, sales of crude oil and condensate fluctuated, moving from 24.75 million barrels in January to 23.08 million in February, dropping to 17.27 million in March, before recovering to 23.65 million in April and 18.95 million in May.

The recent rally in international crude oil prices has significantly strengthened the NNPC's revenue position, lifting earnings from crude oil sales and improving remittances to the Federation Account. Brent crude surged above $120 per barrel at the height of the Middle East conflict in April before easing, but it remained well above Nigeria's 2026 budget benchmark for much of the period.

Higher crude oil prices, combined with improved production and stronger export receipts, enhanced NNPC's ability to meet statutory obligations while generating more revenue for the federal, state and local governments. Even with oil prices retreating from their recent highs, they remain supportive of the company's earnings relative to earlier market expectations.

Similarly, natural gas production and sales followed a separate trajectory, as gas production rose steadily from 7,283 million standard cubic feet per day (mmscf/d) in January to 7,458 mmscf/d in February, 7,731 mmscf/d in March, 7,730 mmscf/d in April, and 7,774 mmscf/d in May.

Gas sales volumes also showed performance, recording 4,978 mmscf/d in January, 4,893 mmscf/d in February, 5,059 mmscf/d in March, 5,044 mmscf/d in April, and 4,921 mmscf/d in May.

Also, infrastructure development remained a pillar of the company's strategic agenda, during the five-month period, as the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project saw steady progress, reaching 94 per cent completion during the period.

In the same vein, the Obiafu-Obrikom-Oben (OB3) gas pipeline also achieved significant milestones, reaching 97 per cent completion from January to May. The removal of the fuel subsidy has been central to the NNPC's new fiscal mandate, intended to eliminate a major drain on public finances and ensure that more resources are available for the Federation Account.

Recent policy interventions have sought to halt previous pre-remittance deductions, directing the company to prioritise direct payments to fiscal authorities to ensure higher transparency.

Despite these reforms, the company faces operational challenges such as crude oil production volatility, infrastructure constraints, and pipeline integrity issues that often limit its output. These tensions between commercial imperatives and its historical role as a provider of energy supply continue to influence its financial performance.