The Nigerian National Petroleum Company Limited (NNPC Ltd) recorded a remarkable rise in profit after tax, climbing to N7.2tn in 2025, even as its revenue dropped by 24 per cent to N34.5tn. The sharp improvement was driven largely by tighter cost controls, better operational efficiency and an aggressive push to recover outstanding debts owed by crude oil and gas customers.
NNPC Group Chief Executive Officer, Bayo Ojulari, disclosed the figures in Abuja while presenting the company’s 2025 audited financial results. According to him, profit after tax jumped by 33 per cent from N5.4tn in 2024 to N7.2tn in 2025, while government payments through taxes, royalties and other remittances rose by 39 per cent to N22.3tn. The latest figure also represents a significant increase from the N674.1bn profit recorded in 2021.
Despite the revenue decline, NNPC strengthened several key financial indicators. Earnings before interest, taxes, depreciation and amortisation rose by 22 per cent to N18tn, operating cash flow increased by 16 per cent to N12.8tn, while earnings per share climbed to N35.9. The company also raised its declared dividend by 35 per cent to N5.8tn. Ojulari attributed the lower revenue mainly to weaker international crude oil prices and reduced white-product volumes following the removal of the fuel subsidy.
A major part of the company’s strategy was reducing expenses and recovering money owed to it. NNPC’s Chief Financial Officer, Adedapo Segun, said general and administrative expenses fell by 25 per cent, as management focused on areas within its control. The company also intensified efforts to recover long-standing receivables from customers who had taken crude oil and gas without settling their bills. Ojulari said debt recovery is now being reviewed monthly, with management engaging directly with companies and entities owing NNPC.
Meanwhile, NNPC’s improved financial performance was accompanied by stronger production, with crude oil and condensate output reaching a five-year peak of 1.77 million barrels per day, while Nigerian gas supply hit a three-year high of 7.2 billion standard cubic feet per day. The company said maintaining the momentum will require continued investment in infrastructure, assets and its workforce. The performance also comes as NNPC moves towards a more commercially driven model under the Petroleum Industry Act and considers a possible stock market listing, making profitability, debt recovery and operational discipline increasingly important to its future.
source: punch