NNPC’s mandatory payments to FG decline 42% to $726 billion in January

The Nigerian National Petroleum Company Limited recorded a sharp decline in its statutory remittances to the Federal Government in January 2026, falling by 42.83% to 726 billion naira.

This was disclosed in the company’s monthly report summary for January 2026, released on Monday.

Statutory payments are mandatory financial obligations that the national oil company remits to the federal government on a monthly basis.

According to the report, the 726 billion naira remitted in January represents a significant decline from the 1.27 trillion naira paid in December 2025.

The report also showed that the company’s revenue plunged 46.68% to 2.57 trillion naira in January, compared to 4.82 trillion naira recorded in the previous month.

Despite the decline in revenue and statutory remittances, the oil company recorded a marginal improvement in profitability.

NNPC said its profit after tax increased by 9.69% to 385 billion naira in January from 351 billion naira reported in December 2025.

The report also revealed improvements in the company’s manufacturing performance during the period under review.

Natural gas production rose to 7.28 million standard cubic feet per day (mscfd) in January, up from 6.19 mscfd recorded in December.

Likewise, gas sales increased to 4.97 million standard cubic feet per day, compared to 4.75 million standard cubic feet/day in the previous month.

Crude oil and condensate production also saw an increase, rising to 1.64 million barrels per day in January, from 1.55 million barrels per day in December 2025.

NNPC attributed the increase in production to the completion of maintenance of key assets.

The company said: “Production increased month-on-month following the completion of turn around maintenance at Agbami and Renaissance (Estuary Area – EA).”

However, he noted that crude oil deliveries planned for January have been reduced due to operational challenges.

“Deliveries scheduled for January have been reduced due to bad weather, evacuation constraints and asset integrity issues,” the report adds.

The company also provided updates on its major gas infrastructure projects, noting progress on the Ajaokuta-Kaduna-Kano (AKK) pipeline.

According to the report, pre-commissioning activities are underway on the main line of the pipeline, while the construction of block valve stations and intermediate pigging stations has seen significant progress.

NNPC added that drilling operations on the Obiafu-Obrikom-Oben (OB3) gas pipeline project, particularly at the Niger River crossing, are also progressing as planned.

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