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Nigeria’s oil sector experienced a significant shift in February 2026, as the Nigerian National Petroleum Company Limited – NNPC Ltd remitted a surging N1.804 trillion to the Federation account.

This marked a substantial increase from the N726 billion remitted in January, a spike largely attributed to recent policy changes aimed at strengthening financial transparency. Despite this fiscal boost, crude oil and condensate production saw a slight decline, averaging 1.51 million barrels per day – mbpd during the month.

The dip in output was primarily driven by technical and operational hurdles across key infrastructure. According to the NNPC’s February monthly report, the sector faced integrity issues leading to an outage on the Trans Forcados pipeline, alongside startup challenges at Stardeep Agbami GTC 2 and 3 following maintenance.

Additional constraints, including delays at the Sterling Oguali flow station and sludge management issues at Enyie wells, further hampered the steady flow of production.

Financially, the report presented a complex picture of growth and contraction. While total revenue rose to N2.68 trillion from January’s N2.57 trillion, the company’s Profit After Tax – PAT took a hit, falling to N136 billion compared to N385 billion the previous month.

This decline in profitability occurred even as statutory remittances reached record highs, reflecting a prioritization of national treasury contributions over internal bottom-line retention.

A pivotal factor in this new financial landscape is the Executive order recently signed by President Bola Tinubu. The directive overhauled revenue practices by suspending the collection of management and frontier exploration fees by NNPC Ltd.

By mandating the full remittance of oil and gas revenues to the Federation Account, the administration aims to align the sector’s cash flows with constitutional provisions and improve overall accountability through an inter-agency implementation committee.

Looking ahead, the NNPC is focusing on stabilization and infrastructure recovery to offset February’s production losses. Efforts are underway to improve asset reliability and resolve evacuation bottlenecks quickly. Furthermore, progress on the AKK gas pipeline remains a priority, with the company fast-tracking installation works to deliver early gas to Abuja.

These strategic moves, combined with increased stakeholder collaboration, are intended to position the Nigerian oil and gas industry for a steady recovery in the coming months.