Company reports higher crude and gas output, N19.5tn in government revenue and improved export terminal performance as it intensifies commercial reforms…..
The Nigerian National Petroleum Company Limited (NNPC Ltd) says it has reduced operating costs by $3.4 billion through contract restructuring and optimisation, marking a major milestone in its drive to improve efficiency and strengthen returns from Nigeria’s oil and gas industry.
The state-owned energy company disclosed the achievement on Tuesday as its Group Chief Executive Officer, Bashir Bayo Ojulari, presented a one-year performance scorecard at the opening of the 25th NOG Energy Week in Abuja.
The report highlighted improvements across several areas of the company’s operations, including crude oil production, natural gas output, government revenue, export infrastructure and financial transparency.
Ojulari said the cost savings were achieved while maintaining operational activities, arguing that tighter commercial controls and more efficient spending could deliver stronger results without requiring proportionate increases in expenditure.
He explained that the contract optimisation programme had helped eliminate waste, improve accountability and strengthen the competitiveness of Nigeria’s petroleum sector.
Beyond the savings, NNPC reported a six per cent year-on-year increase in crude oil production to 569.7 million barrels, while gas output rose by 8.1 per cent to 2,576 billion standard cubic feet.
The company also said its contribution to government revenue climbed by 21.8 per cent to N19.5 trillion during the review period.
Ojulari described the figures as evidence that operational improvements and commercial reforms could simultaneously increase production, reduce expenditure and deliver greater value to the Federation.
Nigeria’s crude oil production has risen to approximately 1.71 million barrels per day, the highest level recorded in five years, according to Ojulari.
He also disclosed that NNPC Exploration and Production Limited achieved a record output of 365,000 barrels per day.
Building on the reported gains, the company is targeting crude oil production of two million barrels per day by 2027 and three million barrels per day by 2030.
Its gas expansion plans are equally ambitious, with total production projected to rise from approximately 7.62 billion cubic feet per day in 2026 to 10 billion cubic feet per day in 2027 and 12 billion cubic feet per day by 2030.
Ojulari attributed the improved output largely to greater operational stability and the recovery of infrastructure across the country’s oil-producing assets.
He said sustained improvements in security, infrastructure maintenance and operational coordination had helped restore the reliability of critical facilities used to transport crude oil to export terminals.
NNPC also reported a substantial improvement in the performance of Nigeria’s crude oil export infrastructure, with an average recovery factor of 98 per cent across its crude export terminals between April 2025 and May 2026.
Ojulari contrasted the performance with the severe operational difficulties previously experienced at the Bonny Oil and Gas Terminal, where the recovery factor reportedly fell to barely one per cent in June 2022.
He said the improvement reflected sustained investment, stronger collaboration and efforts to address security and infrastructure challenges that had disrupted crude evacuation.
According to the NNPC chief, major evacuation pipelines, including the Trans Niger, Trans Escravos, Trans Ramos and Trans Forcados pipelines, as well as the Oando-Brass line, were operating at full availability.
He said the improved reliability of the network was important for restoring confidence among oil producers, investors and international crude buyers.
Ojulari further disclosed that NNPC maintained full compliance with its joint venture cash-call obligations throughout 2025 and through June 2026.
He said meeting the company’s financial commitments was essential to sustaining partnerships, preventing project delays and maintaining investor confidence.
However, he noted that some joint venture partners had yet to meet their obligations fully, leaving NNPC to shoulder additional funding responsibilities in certain ventures.
The company said it remained committed to supporting efforts to raise national crude oil production to two million barrels per day while ensuring that funding constraints did not stall critical projects.
On the commercial front, NNPC said it had signed major gas sale and purchase agreements covering 1.29 billion standard cubic feet per day of long-term liquefied natural gas feedstock and another 750 million standard cubic feet per day for domestic industrial gas supply to DFL FZE and Dangote Refinery.
According to Ojulari, the agreements are expected to unlock more than $20 billion in associated investments, while seven additional commercial transactions remain under negotiation.
The proposed investments could strengthen gas supply for industrial users, support domestic processing and expand opportunities across Nigeria’s energy value chain.
NNPC also highlighted changes to its financial reporting and stakeholder engagement practices, including the resumption of full monthly remittances to the Federation Account in July 2025, the reinstatement of monthly business performance reports and the company’s first earnings call in November 2025.
The measures, Ojulari said, were intended to improve transparency and give investors greater visibility into the company’s performance.
Looking beyond Nigeria, the NNPC chief called on African governments, investors, regulators and energy operators to strengthen cooperation and develop more integrated energy markets.
He argued that fragmented investments and weak coordination continued to limit the continent’s ability to translate its vast natural resources into industrial development and economic prosperity.
Ojulari noted that Africa holds approximately 17 per cent of global natural gas reserves, alongside substantial crude oil and renewable energy resources, but continues to attract a relatively small share of global energy investment.
He urged stakeholders to move away from isolated projects towards partnerships that connect financing, technology, infrastructure, policy and markets.
According to him, developing competitive industrial economies will require African countries to go beyond exporting raw commodities and focus on expanding domestic processing, manufacturing and energy distribution.
The remarks come as NNPC continues its commercial transformation under the Petroleum Industry Act, which established the company as a commercially oriented corporate entity.
The latest performance report also comes amid Federal Government efforts to increase oil production, expand gas utilisation, rehabilitate critical infrastructure and attract fresh investment into the petroleum sector.
For Nigeria, lower operating costs and more reliable production infrastructure could strengthen the industry’s competitiveness at a time when international energy companies are increasingly selective about where they commit capital.
The 25th NOG Energy Week brings together energy executives, government officials, investors and industry experts to discuss investment, energy security, infrastructure development and the future of Africa’s oil and gas sector.
While NNPC’s reported gains point to progress in its reform agenda, sustaining the improvements and meeting its ambitious production targets will depend on continued operational efficiency, reliable infrastructure, effective security and stronger investment across the industry.
