The Nigerian National Petroleum Company (NNPC) Limited has reported a steep decline in profitability, with its Profit After Tax (PAT) dropping to N216 billion in September 2025 — a sharp 71 percent fall from N748 billion recorded in April.
According to the company’s latest financial report summaries, the sustained downturn marks a significant reversal for the state-owned oil giant, raising fresh concerns about its fiscal stability and contributions to the federation account amid volatile global oil market conditions.
Six-Month Slide in Profitability
An analysis of NNPC’s performance between April and September 2025 shows fluctuating but declining profitability across the period. The company recorded a PAT of N748 billion in April, which climbed to N1.05 trillion in May, before slipping to N905 billion in June.
However, July saw a dramatic slump to N185 billion, followed by a partial rebound to N539 billion in August, only for profit to fall again to N216 billion in September.
NNPC said the September figure “included adjustments to cost of sales and income tax,” underscoring the impact of operational and fiscal changes within the company’s accounting period.
Oil Output Disruptions Weigh on Earnings
Industry analysts link the company’s reduced profitability to a combination of lower crude oil output and temporary disruptions caused by industrial action in the oil sector.
A three-day strike in September by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) significantly impacted crude oil and gas production.
Group Chief Executive Officer Bayo Ojulari disclosed that the strike resulted in the loss of approximately 200,000 barrels per day (bpd) — translating to a total loss of over 600,000 barrels during the disruption.
“It was unfortunate that the Dangote and PENGASSAN issue led to the strike,” Ojulari said. “When critical staff manning key facilities are unavailable, optimum production becomes impossible. We also lost gas output and power generation capacity of about 1.2 megawatts during the period.”
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirmed the decline, reporting that the country’s crude oil production fell to 1.39 million barrels per day (mbpd) in September, down from 1.43 mbpd in August.
Revenue Also Declines Amid Maintenance and Delays
The NNPC’s report also showed a dip in revenue, which stood at N4.269 trillion in September, compared to N4.655 trillion in August. The company explained that the figures represent aggregate group revenues, including intercompany transactions, and are provisional pending reconciliation with relevant stakeholders.
The firm added that production levels during the period were “temporarily moderated due to planned maintenance activities, including those at NLNG,” and that there were delays in the commencement of operations at Oil Mining Leases (OMLs) 71 and 72, as well as a gradual recovery of previously shut-in assets.
Fiscal Implications for Nigeria’s Oil-Dependent Economy
The sharp decline in NNPC’s profit could have wider implications for Nigeria’s revenue projections and budgetary funding, given that the company remains a major contributor to the federation’s earnings through remittances and dividends.
With global crude prices remaining volatile and domestic production still below the government’s 1.7 mbpd target, analysts warn that persistent operational setbacks could limit the oil sector’s ability to support Nigeria’s fiscal stability in the coming quarters.
For NNPC, the latest numbers underscore the challenges of sustaining profitability amid production constraints, industrial unrest, and a fragile global oil market — pressures that could continue to test the company’s transition into a commercially driven national oil entity.