NNPC shifts focus from revenue growth to production as profit hits ₦7.2trn

By Onu Okorie

Nigerian National Petroleum Company Limited (NNPC Ltd.) is banking on higher crude oil and gas production, alongside a planned $60 billion investment programme, to sustain its earnings momentum after posting a 33 per cent increase in profit after tax to ₦7.2 trillion in 2025.
The company’s latest audited results, presented following its Annual General Meeting and second Earnings Call with financial and business analysts, showed that the state-owned energy company strengthened profitability despite a 24 per cent decline in revenue to ₦34.5 trillion.
The contrasting movement between revenue and profit puts the spotlight on production growth, operational efficiency and cost discipline as increasingly important drivers of NNPC Ltd.’s financial performance following the deregulation of the downstream petroleum market.
Revenue was affected mainly by lower crude oil prices and reduced white-product volumes, but earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 22 per cent to ₦18 trillion.
Operating cash flow also increased by 16 per cent to ₦12.8 trillion, while earnings per share climbed 32 per cent to ₦35.9. Return on equity improved by 200 basis points to 16 per cent.
The company declared a dividend of ₦5.8 trillion, representing a 35 per cent increase over the previous year.
Production takes centre stage
Beyond the headline financial figures, NNPC Ltd.’s 2025 performance revealed a significant improvement in its upstream production base.
Crude oil and condensate production averaged 1.77 million barrels per day, the company’s highest level in five years.
Total oil and condensate production reached 565.8 million barrels, representing a five per cent increase, while NNPC Ltd.’s equity share rose by 11 per cent to 223.7 million barrels.
The company also recorded stronger gas production, with output averaging 7.2 billion standard cubic feet per day, described as a three-year high.
Total natural gas production stood at 2,606.2 billion standard cubic feet, up nine per cent, while NNPC Ltd.’s equity share increased 11 per cent to 1,154.9 billion standard cubic feet.
The figures are particularly significant as the company positions gas as a major component of Nigeria’s energy transition, industrialisation and power-generation strategy.
$60bn investment target
NNPC Ltd. is now looking beyond its 2025 performance, setting more ambitious production targets for the next four years.
The company is targeting crude oil production of two million barrels per day by 2027 and three million barrels per day by 2030.
It also plans to raise natural gas production to 12 billion standard cubic feet per day by 2030.
To support these targets, NNPC Ltd. said it plans to mobilise $60 billion in upstream, midstream and downstream investments by 2030.
The investment drive is expected to cover oil production expansion, gas infrastructure and downstream assets, with the company also targeting completion of major projects including the Ajaokuta-Kaduna-Kano (AKK) pipeline, the Escravos-Lagos Pipeline System (ELPS) and the Obiafu-Obrikom-Oben (OB3) gas pipeline.
Gas infrastructure gains
The company reported significant progress on its gas infrastructure portfolio during the year.
It completed the AKK River Niger crossing and the entire 40-inch, 623-kilometre AKK mainline.
NNPC Ltd. also commissioned the ANOH-OB3 Custody Transfer Metering Station and moved the 300 million standard cubic feet per day ANOH Gas Processing Plant to start-up readiness.
These developments could strengthen the infrastructure required to move gas from producing areas to power plants, industries and other domestic markets.
The company also acquired 500 compressed natural gas-powered trucks as part of efforts to deepen gas utilisation in the transport sector.
Refinery strategy changes
In the downstream segment, NNPC Ltd. adopted a Technical Equity Partnership Model for its refinery reform programme.
The move comes as the company seeks to reposition its downstream portfolio within a deregulated petroleum market, with greater emphasis on commercially sustainable operations.
Workforce becomes part of growth strategy
NNPC Ltd. is also tying its expansion strategy to changes in its workforce.
The company employed 1,023 full-time employees in 2025, including more than 1,000 graduates deployed after completing a one-year internship and training programme.
Women now account for 23 per cent of leadership positions, compared with an industry average of 17 per cent, according to the company.
Through its Talent-to-Value and Fit-for-Future initiatives, NNPC Ltd. said it is combining experienced personnel with younger professionals while expanding digital and international exposure.
“Our 2025 performance shows what disciplined execution and a capable workforce can deliver,” Group Chief Executive Officer of NNPC Ltd., Engr. Bashir Bayo Ojulari, said.
He added that the company was strengthening earnings, growing production and investing in people and assets to sustain value for shareholders, communities and Nigerians.
Sustainability commitments
The company also reported progress on its social and environmental programmes.
It said it completed 6,028 cataract surgeries, planted 80,000 trees and developed its Net Zero 2050 strategy.
NNPC Ltd. also maintained reporting under the Oil and Gas Methane Partnership, Oil and Gas Decarbonization Charter and United Nations Global Compact frameworks.
With the company now operating as a commercial, profit-driven entity under the Petroleum Industry Act, the 2025 results mark another step in its transition from a traditional national oil company towards an investment-focused energy company.
The key test ahead will be whether the stronger production base and planned investments can translate into sustained cash generation while NNPC Ltd. executes its ambitious 2030 oil and gas targets.