The Nigerian National Petroleum Company Limited recorded a sharp decline in revenue in 2025, even as improved cost management, higher other income and increased oil and gas production helped the national oil company deliver a 33 per cent rise in profit after tax.
According to NNPC’s audited financial statements for the year ended December 31, 2025, revenue fell by 24 per cent to N34.5 trillion, compared with N45.1 trillion recorded in the previous year.
The company attributed the decline principally to weaker crude oil prices and lower volumes of white products following the deregulation of the downstream petroleum market in 2024.
The revenue performance came against a backdrop of lower international oil prices. The annual average crude oil price fell from about $80 per barrel in 2024 to $69 per barrel in 2025.
Despite the drop in revenue, NNPC’s profit after tax increased from N5.4 trillion in 2024 to N7.2 trillion in 2025, representing an increase of N1.8 trillion or 33 per cent.
The company attributed the improvement largely to a significant increase in other income and a reduction in operating expenses.
NNPC’s other income rose from N3.39 trillion in 2024 to N8.42 trillion in 2025, while general and administrative expenses declined from N3.58 trillion to N2.59 trillion.
Selling and distribution expenses also fell during the period, declining from N11.71 billion in 2024 to N9.37 billion in 2025.
The company additionally recorded a net impairment reversal on financial assets of N325.43 billion in 2025, compared with an impairment charge of N753.56 billion in the preceding year.
These factors helped push NNPC’s operating profit up by 24.7 per cent, from N10.84 trillion in 2024 to N13.51 trillion in 2025.
Profit rises despite higher finance costs
NNPC, however, faced higher finance costs during the year, with the figure rising from N1.75 trillion to N2.48 trillion.
The company also recorded an “other loss” of N1.99 trillion in 2025, compared with an “other gain” of N209.38 billion in 2024.
Despite these pressures, profit before tax increased by 18.3 per cent to N11.31 trillion, compared with N9.56 trillion in 2024.
The company’s earnings before interest, taxes, depreciation and amortisation also rose by 22 per cent to N18 trillion, while earnings per share increased by 32 per cent to N35.9.
Operating cash flow climbed by 16 per cent to N12.8 trillion, while return on equity improved by 200 basis points to 16 per cent.
NNPC declared a dividend of N5.8 trillion for the financial year, representing a 35 per cent increase over the previous year.
Oil production hits five-year high
The company also reported stronger production performance during the year, with crude oil and condensate output averaging 1.77 million barrels per day, its highest level in five years.
Total crude oil and condensate production reached 565.8 million barrels, representing a five per cent increase, while NNPC’s equity share rose by 11 per cent to 223.7 million barrels.
Natural gas production also reached a three-year high, averaging 7.2 billion standard cubic feet per day.
Total gas production stood at 2,606.2 billion standard cubic feet, an increase of nine per cent, while NNPC’s equity share rose by 11 per cent to 1,154.9 billion standard cubic feet.
The company said it also recorded progress on several major infrastructure and energy projects during the year.
“Progress across the portfolio included completion of the AKK River Niger crossing and full completion of the 40-inch by 623-kilometre Ajaokuta-Kaduna-Kano mainline,” NNPC said.
The company also highlighted developments in gas processing, compressed natural gas and refinery operations.
“NNPC Limited commissioned the ANOH-OB3 Custody Transfer Metering Station and advanced the 300MMscfd ANOH Gas Processing Plant to start-up readiness. It also acquired 500 CNG-powered trucks, and adopted a Technical Equity Partnership Model for its refinery reform.”
NNPC targets higher production, $60bn investment
Looking ahead, NNPC said it was entering a new phase of growth with ambitious production and investment targets.
The company said it was targeting crude oil production of two million barrels per day by 2027 and three million barrels per day by 2030.
It also plans to increase natural gas production to 12 billion standard cubic feet per day by 2030, while mobilising $60 billion in upstream, midstream and downstream investments over the same period.
“The Company plans to mobilise $60 billion in upstream, midstream and downstream investments by 2030 and complete major gas infrastructure, including AKK, ELPS and OB3,” the company said.
The targets form part of NNPC’s broader strategy to increase production, expand gas infrastructure and strengthen its position across the oil and gas value chain.
Ojulari: Performance reflects disciplined execution
Commenting on the results, NNPC Group Chief Executive Officer, Bayo Ojulari, said the company’s 2025 performance reflected efforts to strengthen earnings while increasing production and investing in its assets and workforce.
Ojulari said the results demonstrated the impact of improved execution across the company’s operations.
“The 2025 performance shows what disciplined execution and a capable workforce can deliver,” he said.
The financial results present a mixed picture of NNPC’s 2025 performance, with lower revenue reflecting weaker crude prices and downstream market changes, while higher profitability, production and cash generation point to improved performance in several areas of the business.
The company’s ability to meet its ambitious 2027 and 2030 production and investment targets will depend on continued growth in upstream output, execution of major infrastructure projects and sustained investment across the oil and gas value chain.