Lower crude prices and weaker white-product volumes cut revenue, but improved earnings and higher oil and gas output pushed profit to N7.2tn…
The Nigerian National Petroleum Company Limited recorded N34.5 trillion in revenue in 2025, a 24 per cent decline from the N45.1 trillion it generated a year earlier.
Despite the drop in revenue, the state-owned energy company reported a sharp increase in profitability, with profit after tax rising to N7.2 trillion from N5.4 trillion in 2024.
NNPC released the figures on Tuesday as it published its audited financial results for the year ended December 31, 2025.
The company attributed the revenue decline mainly to lower crude oil prices and reduced volumes of white products following the deregulation of the downstream petroleum market in 2024.
The weaker revenue also affected gross profit, which fell from N11.71 trillion in 2024 to N9.37 trillion in 2025.
How NNPC increased profit despite lower revenue
While revenue and gross profit declined, NNPC’s bottom line moved in the opposite direction.
The company said the improvement was driven largely by a significant increase in other income and reductions in operating expenses.
Other income more than doubled during the year, rising from N3.39 trillion in 2024 to N8.42 trillion in 2025.
General and administrative expenses also declined, falling from N3.58 trillion to N2.59 trillion.
The company’s net impairment position improved substantially as well. NNPC recorded a N325.43 billion net impairment reversal on financial assets in 2025, compared with a N753.56 billion impairment charge in 2024.
Those changes helped lift operating profit by 24.7 per cent, from N10.84 trillion to N13.51 trillion.
Finance costs, however, moved higher, increasing from N1.75 trillion in 2024 to N2.48 trillion.
NNPC also reported an other loss of N1.99 trillion during the year, compared with an other gain of N209.38 billion in 2024.
After accounting for these items, profit before tax rose 18.3 per cent to N11.31 trillion from N9.56 trillion.
EBITDA climbs to N18tn
NNPC’s earnings before interest, taxes, depreciation and amortisation increased by 22 per cent to N18 trillion.
The company also reported a 32 per cent increase in earnings per share to N35.90.
Operating cash flow rose 16 per cent to N12.8 trillion, while return on equity improved by two percentage points to 16 per cent.
NNPC also declared a N5.8 trillion dividend for 2025, representing a 35 per cent increase from the previous year.
Oil production hits five-year high
The financial results were accompanied by an increase in NNPC’s oil and gas production.
Crude oil and condensate output averaged 1.77 million barrels per day in 2025, which the company described as its highest level in five years.
Total crude oil and condensate production reached 565.8 million barrels, up 5 per cent from the previous year, while NNPC’s equity share increased by 11 per cent to 223.7 million barrels.
Gas production also strengthened during the year.
Natural gas output averaged 7.2 billion standard cubic feet per day, its highest level in three years. Total production reached 2,606.2 billion standard cubic feet, an increase of 9 per cent.
NNPC’s equity share of gas production rose by 11 per cent to 1,154.9 billion standard cubic feet.
AKK pipeline, ANOH project advance
The company also highlighted progress on several major infrastructure projects during the year.
NNPC said it completed the River Niger crossing for the Ajaokuta-Kaduna-Kano gas pipeline and finished construction of the 40-inch, 623-kilometre AKK mainline.
It also commissioned the ANOH-OB3 Custody Transfer Metering Station and advanced the 300 million standard cubic feet per day ANOH Gas Processing Plant to start-up readiness.
The company said it acquired 500 CNG-powered trucks and adopted a Technical Equity Partnership Model as part of its refinery reform strategy.
NNPC targets 3m barrels per day by 2030
NNPC said it is targeting further increases in production as it moves into its next phase of growth.
The company plans to raise crude oil production to 2 million barrels per day by 2027 and 3 million barrels per day by 2030.
It is also targeting natural gas production of 12 billion standard cubic feet per day by 2030.
To support those ambitions, NNPC said it plans to mobilise $60 billion in upstream, midstream and downstream investments by 2030 and complete major gas infrastructure projects, including AKK, the Escravos-Lagos Pipeline System and the OB3 pipeline.
Commenting on the results, NNPC Group Chief Executive Officer, Bashir Bayo Ojulari, said the 2025 performance reflected efforts to improve earnings, increase production and strengthen the company’s workforce and asset base.
“Our 2025 performance shows what disciplined execution and a capable workforce can deliver,” Ojulari said.
The results mark a year in which NNPC generated less revenue but recorded stronger profitability, higher production and increased cash flow as it continues its transition into a commercially driven energy company.
