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The Nigerian National Petroleum Company Limited – NNPC has kicked off 2026 with a robust financial and operational performance, remitting N2.89 trillion to the Federation Account in the first quarter.

This fiscal upswing was capped by a standout March performance, where the company posted a profit after tax of N276 billion—a staggering 102.94% increase from the previous month. This recovery is largely attributed to a stronger revenue cycle fueled by rising production, tighter fiscal controls, and new executive mandates from President Bola Ahmed Tinubu that ensure the full remittance of oil and gas revenues while suspending previous management fee deductions.

A structural shift toward gas monetization has emerged as the primary engine for this newfound profitability. In March, gas output peaked at 7,731 million standard cubic feet per day (mmscf/d), the highest level in a year, bolstered by the early completion of maintenance at the Bonga Field offshore facilities.

While crude oil and condensate production remained steady at 1.56 million barrels per day, the “gas boom” provided the necessary lift to push monthly revenue to N2.77 trillion, signaling that Nigeria’s energy mix is successfully diversifying to anchor long-term fiscal stability.

Despite these financial gains, the report highlights persistent midstream and downstream hurdles that continue to cap the sector’s total potential. Crude sales saw a decline in March due to evacuation bottlenecks and a significant leak on the Trans Forcados Pipeline, which disrupted production for over a month.

Furthermore, downstream performance remains uneven, with petrol availability at NNPC retail stations estimated at just 56% nationwide. These vulnerabilities underscore the urgent need for the ongoing infrastructure projects, such as the AKK Gas Pipeline and the Obiafu-Obrikom-Oben river crossing, to reach completion.

Looking ahead, analysts remain cautiously optimistic that the combination of improved upstream efficiency and strict compliance oversight will keep government remittances elevated throughout 2026.

However, the sustainability of this momentum rests heavily on the company’s ability to secure pipelines and stabilize the distribution value chain. If the NNPC can successfully navigate these logistical risks, the 2026 fiscal year could mark a transformative period where gas output finally matches oil as a pillar of national wealth, providing much-needed relief to the country’s federal and state finances.