Nigeria's State Petroleum Company Grows Profit 33% in 2025

Nigerian National Petroleum Company Limited

AFRICAN STOCKS AND FINANCEOctober 1, 2026 at 5:11 AM UTC

TLDR

NNPC Limited reported a 33% increase in Profit After Tax to N7.2 trillion for 2025.
The national oil company declared a N5.8 trillion dividend and achieved its strongest crude and condensate production in five years.
NNPC is preparing for a potential Initial Public Offering while pursuing refinery reforms and gas infrastructure projects.

Nigerian National Petroleum Company Limited (NNPC) announced its audited financial results for the year ended 2025 on Tuesday. The national oil company reported a 33% increase in Profit After Tax (PAT), reaching N7.2 trillion, up from N5.4 trillion in 2024. Group Chief Executive Officer Bayo Ojulari presented these results in Abuja, noting this profit growth occurred despite a 24% decline in total revenue to N34.5 trillion.

NNPC declared a N5.8 trillion dividend, a 35% increase over the previous year. Mr. Ojulari attributed the stronger profit to improved operational efficiency and financial discipline. The company also achieved its strongest crude and condensate production in five years, averaging 1.77 million barrels per day, with natural gas supply reaching a three-year high of 7.2 billion standard cubic feet per day.

Other key financial indicators showed significant improvement. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rose 22% to N18 trillion, while operating cash flow grew 16% to N12.8 trillion. Taxes, royalties, and other remittances to the federal government jumped 39% to N22.3 trillion, with return on equity improving by 200 basis points to 16%.

Mr. Ojulari emphasized that stronger earnings provide NNPC with greater capacity to invest and contribute to public revenue. The company strengthens its workforce and invests in assets to sustain value for stakeholders. Major infrastructure projects like the AKK River Niger crossing and ANOH Gas Processing Plant support future growth, alongside a Technical Equity Partnership Model for refineries aiming for commercially viable operations.

NNPC commenced work on its listing-readiness for a potential Initial Public Offering (IPO), identifying and closing gaps. However, management stressed that no date is fixed for an IPO, as the ultimate decision rests with the shareholders. The company considers integrating petrochemicals into its refinery strategy to improve margins, while Project Gazelle, a crude-backed financing arrangement, remains in place.

Key Takeaways

NNPC Limited's reported 33% profit increase to N7.2 trillion for 2025, despite a 24% revenue decline, highlights a significant shift towards operational efficiency and financial discipline within the national oil company. This performance underscores its ongoing transformation from a state-owned enterprise to a commercially driven entity, a process critical for Nigeria's economic stability and energy security. The substantial N5.8 trillion dividend declared and the N22.3 trillion in taxes and royalties remitted to the federal government demonstrate NNPC's vital role in public revenue generation, especially as the nation navigates fluctuating global oil prices. Furthermore, the company's strategic focus on increasing crude and gas production, alongside major infrastructure projects like the AKK pipeline and ANOH Gas Processing Plant, signals a commitment to bolstering Nigeria's energy output and domestic supply. The adoption of a Technical Equity Partnership Model for refineries aims to ensure long-term commercial viability and reduce operational risks, moving beyond traditional rehabilitation contracts. While NNPC is actively preparing for a potential Initial Public Offering (IPO) by addressing listing gaps, the absence of a fixed date indicates that the decision remains a strategic one for its shareholders, balancing market readiness with broader national objectives. This comprehensive approach reflects NNPC's ambition to become a self-sustaining, profitable, and globally competitive energy company.

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