By Seun Ibiyemi
Nigeria’s crude oil and condensate production declined to an average of 1.51 million barrels per day (mbpd) in February 2026, even as the Nigerian National Petroleum Company Limited recorded a significant increase in revenue remittances to the Federation Account.
According to the company’s February Monthly Report Summary, statutory remittances rose sharply to N1.804 trillion, compared to N726 billion recorded in January.
The report attributed the drop in production to operational challenges, including outages on the Trans Forcados Pipeline due to integrity issues, startup difficulties at Stardeep Agbami GTC 2 and 3 following maintenance, delays at the Sterling Oguali flow station, and sludge management constraints at Enyie wells.
Despite these setbacks, the NNPC reported improved financial performance, with total revenue rising to N2.68 trillion in February from N2.57 trillion in January.
However, Profit After Tax declined to N136 billion, down from N385 billion in the previous month.
The company noted ongoing efforts to stabilise operations, including improved asset reliability, faster resolution of crude evacuation challenges, and enhanced collaboration with industry stakeholders.
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It also highlighted progress on the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project, aimed at delivering early gas supply to Abuja, as part of broader efforts to strengthen energy infrastructure.
NNPC attributed the surge in remittances to recent policy reforms introduced by President Bola Tinubu, including an Executive Order signed in February 2026 to overhaul revenue remittance practices in the oil and gas sector.
The directive mandates full remittance of oil and gas revenues to the Federation Account and suspends the collection of certain fees, while also establishing an inter-agency implementation committee led by the Minister of Finance to ensure compliance.
The report said these measures are part of ongoing reforms to improve transparency, accountability and alignment of revenue flows with constitutional provisions.
