Oil Output Drops To 1.51mbpd In February As NNPC Remits N1.804trn

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 remitted N1.804 trillion to the Federation Account.

According to the company’s February Monthly Report Summary released on Saturday, the drop in output was linked to several operational setbacks. These included an outage on the Trans Forcados Pipeline caused by integrity issues, as well as startup challenges at the Stardeep Agbami GTC 2 and 3 facilities following turnaround maintenance.

The report also cited delays at the Sterling Oguali flow station and sludge management constraints at Enyie wells as contributing factors to the production decline.

Despite these challenges, the report showed an improvement in key financial indicators. Total revenue increased to N2.68 trillion in February, up from N2.57 trillion recorded in January. However, Profit After Tax (PAT) fell significantly to N136 billion, compared to N385 billion in the previous month.

NNPC Ltd noted that efforts are ongoing to stabilise operations, including improving asset reliability, accelerating crude evacuation processes, and advancing work on the Ajaokuta–Kaduna–Kano (AKK) gas pipeline project to enable early gas delivery to Abuja. These measures, it said, are expected to support a potential recovery in the sector.

Highlighting its performance, the company stated: “Major highlights include total revenue rising to N2.68 trillion in February from N2.57 trillion in January. Statutory remittances surged to N1.804 trillion, up from N726 billion in the previous month, while PAT stood at N136 billion. Crude oil and condensate production averaged 1.51 million barrels per day in February.”

The report attributed the improved remittance performance to recent policy reforms aimed at enhancing revenue transparency in the oil and gas sector.

On the AKK gas pipeline, NNPC Ltd confirmed that construction and installation activities are progressing, with a focus on delivering early gas supply to Abuja. It added that timely infrastructure delivery and stronger collaboration with operators and stakeholders are supporting gradual recovery across key assets.

In February 2026, President Bola Tinubu signed an Executive Order introducing major reforms to revenue remittance practices in the sector. The directive suspended the collection of management and frontier exploration fees by NNPC Ltd and mandated the full remittance of oil and gas revenues to the Federation Account.

The order also established an inter-agency implementation committee, chaired by the Minister of Finance and Coordinating Minister for the Economy, to oversee its execution.

These measures form part of broader reforms designed to align revenue flows with constitutional provisions and strengthen accountability in the oil and gas industry.