The Nigerian National Petroleum Company Limited has remitted ₦7.913 trillion to the Federation Account, amid growing concerns over the operations and progress of the long-awaited OB3 gas pipeline project.

Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), Bashir Bayo Ojulari

• Oil firm pays N1.63tr in July, posts N279bn profit
• OB3 misses August first-gas target despite 100% availability claim

Nigerian National Petroleum Company Limited (NNPC Ltd) has remitted N7.913 trillion in statutory payments to the Federation Account between January and July 2026, even as crude oil and condensate production fell to 1.68 million barrels per day (bpd) in July amid operational disruptions across several 

production assets

The figures, contained in NNPC Ltd’s July 2026 Monthly Report Summary released yesterday, highlighted the company’s strong contribution to government revenue against a backdrop of production challenges that affected crude output during the month.

The figure represents an increase of N1.627 trillion over the N6.286 trillion remitted between January and June 2026.

The latest monthly remittance came as the national oil company reported N3.087 trillion in revenue and N279 billion profit after tax in July, indicating continued strong financial performance even as crude oil and condensate production moderated during the month.

The development comes against the backdrop of the Federal Government’s drive to strengthen petroleum revenue flows into the Federation Account. In February, President Bola Tinubu directed through Executive Order 9 that petroleum revenues due to the Federation be remitted directly to the Federation Account, as part of measures to safeguard public revenues and improve fiscal stability.

The strong fiscal contribution, however, coincided with a setback in oil production, with NNPC’s combined crude oil and condensate output declining by about 2.3 per cent from 1.72 million bpd in June to 1.68 million bpd in July.

The July figure comprised 1.44 million bpd of crude oil and 240,000 bpd of condensate, compared with 1.47 million bpd of crude and 250,000 bpd of condensate in June.

The decline came after Nigeria recorded a period of improving production. NUPRC had reported that June crude production reached 1.56 million bpd, its highest level since April 2020, while combined crude and condensate output stood at about 1.735 million bpd.

NNPC Ltd put July crude oil and condensate production at 1.68 million barrels per day (bpd), attributing the performance to operational disruptions across several 

production assets.

“July crude oil production was affected by a combination of operational disruptions across several assets, including facility outages, equipment unavailability, pipeline incidents, and production constraints,” the company stated.
The production challenge contrasts with the company’s strong fiscal contribution, with the July remittance alone lifting its cumulative statutory payments to the Federation Account to N7.913 trillion in the first seven months of the year.

NNPC Ltd said its production improvement efforts would focus on maintaining high facility uptime through preventive maintenance and reducing unplanned downtime.

Meanwhile, the much-anticipated first gas from the Obiafu-Obrikom-Oben (OB3) gas pipeline appears to have missed the August 2026 target earlier set by NNPC, raising fresh questions over the status of the long-delayed project.

NNPC, in its July 2026 Monthly Report, said the OB3 pipeline recorded 100 per cent availability, while pre-commissioning activities at the Niger River Crossing had been completed. The company, however, stated that first gas was expected in August 2026.

With September now underway, NNPC is yet to publicly confirm that first gas has commenced on the pipeline or provide a fresh timeline for commissioning, despite the completion of the critical Niger River crossing in April.

The development raises questions over whether the pipeline has entered full operational service and what outstanding works may be delaying the commencement of gas transmission, particularly given NNPC’s latest claim of 100 per cent availability.