Nigeria’s crude oil production experienced a decline in February 2026, even as gas output steadily increased and the Nigerian National Petroleum Company Limited (NNPCL) reported strong financial performance for the period.
The NNPC's latest monthly report shows that crude oil and condensate production dropped to 1.51 million barrels per day (mbpd) in February, down from 1.64 mbpd in January. This marks a continuation of the fluctuating trend observed over the past year.
The report indicated that upstream pipeline availability stood at 93 percent, suggesting relative infrastructure stability, though this was not enough to prevent the dip in production.
Group Chief Executive Officer of NNPC Ltd, Bashir Ojulari, stated that national crude production has significantly increased from historic lows recorded in 2022, attributing this to improved pipeline security and efforts to curb oil theft. He noted that crude production rose from approximately 960,000 barrels per day in 2022 to an average of 1.71 million barrels per day, peaking at 1.84 million barrels per day in 2025.
Gas Production Rebounds
In contrast to the crude oil output, the country’s gas production saw a notable increase in February, reaching 7,458 million standard cubic feet per day (mmscfd). This level is among the highest recorded in the review period.
Gas sales remained strong at 4,893 mmscfd, indicating sustained demand and improved delivery capacity. This rise in gas output aligns with Nigeria’s strategy to deepen gas utilization as a transition fuel and revenue source.
The NNPC unveiled its Gas Master Plan (GMP) 2026 in January, aiming to drive industrialization and enhance energy security. The plan is an extension of the Nigerian Gas Master Plan 2008 and is fully aligned with the Nigerian Decade of Gas Programme.
Revenue Strong, Profit at N136bn
Financially, the NNPC reported a revenue of N2.68 trillion for February. The company posted a profit after tax of N136 billion, demonstrating operational profitability despite challenges in the oil segment.
Statutory payments made to the government totalled N1.804 trillion, underscoring the company’s fiscal importance.
Downstream operations showed mixed results. Petrol (PMS) availability at NNPC retail stations was at 58 percent, suggesting potential supply or distribution issues. However, key gas infrastructure projects performed well, with the Obiafu-Obrikom-Oben (OB3) pipeline at 96 percent availability and the Ajaokuta-Kaduna-Kano (AKK) pipeline at 93 percent availability.
Sales Performance Fluctuates
Crude oil and condensate sales in February were recorded at 23.08 million barrels. This figure is below the peak levels seen in late 2025, reflecting the impact of declining production volumes.
Gas sales, however, remained resilient, mirroring the production gains achieved during the month.
The NNPC stated that it is focusing on strengthening production resilience through improved asset reliability, faster issue resolution, and enhanced collaboration with stakeholders. Progress on major gas infrastructure projects like the AKK and OB3 pipelines continues.
