NNPC Profit Hits ₦7.2tn Despite 24% Revenue Drop

Nigeria’s state-owned oil company has posted a striking set of numbers: revenue fell sharply, but profit increased.

NNPC Limited reported a profit after tax of ₦7.2 trillion for 2025, up 33% from ₦5.4 trillion in 2024. At the same time, revenue dropped 24% to ₦34.5 trillion.

That apparent contradiction is one reason NNPC has become a major search topic.

So how can a company make less revenue but significantly more profit?

NNPC Made Less Money From Sales

NNPC attributed the fall in revenue mainly to lower international crude oil prices and reduced volumes of refined petroleum products following changes in Nigeria’s downstream market.

Revenue dropped from about ₦45.1 trillion to ₦34.5 trillion, according to figures discussed during the presentation of the company’s audited results.

Normally, a fall of that scale could put considerable pressure on profitability.

But other parts of NNPC’s finances moved in the opposite direction.

So Why Did NNPC Profit Rise?

The company says cost control played an important role.

NNPC Chief Financial Officer Adedapo Segun said management focused on expenses it could control as crude prices weakened. General and administrative expenses reportedly fell by 25%, while their share of revenue dropped from 8% to 7%.

Another factor was debt recovery.

NNPC intensified efforts to collect money owed by companies that had received crude oil and gas but had yet to make full payment. Recovering some of those receivables also allowed the company to reverse provisions previously made for debts considered difficult to recover.

Put simply, NNPC sold less but retained more of what it earned while recovering money previously owed to it.

Oil and Gas Production Also Improved

Operational performance strengthened during the year.

NNPC said crude oil and condensate production averaged 1.77 million barrels per day, its highest level in five years.

Natural gas production averaged 7.2 billion standard cubic feet per day, described by the company as a three-year high.

Its EBITDA — earnings before interest, taxes, depreciation and amortisation — increased 22% to ₦18 trillion, while operating cash flow rose 16% to ₦12.8 trillion. NNPC also declared a ₦5.8 trillion dividend, 35% higher than the previous year.

Why Fuel Subsidy Is Back in the NNPC Conversation

The financial results have also become part of Nigeria’s continuing debate over petrol subsidies.

Presidential adviser Bayo Onanuga argued on September 29 that returning to the previous subsidy arrangement could damage NNPC’s finances, while commenting on the company’s 2025 performance. His comments represent the Presidency’s position in the ongoing policy debate.

That discussion helps explain why searches around NNPC are currently combining questions about company profits, petroleum prices and fuel subsidies.

What Nigerians Should Watch Next

The bigger question is whether NNPC can sustain the performance.

The company is targeting crude production of 2 million barrels per day by 2027 and 3 million barrels per day by 2030. It also says it plans to mobilise about $60 billion in investment across its upstream, midstream and downstream businesses by 2030.

For Nigerians, the important numbers to watch will therefore extend beyond headline profit.

Future results will show whether higher production, lower operating costs and better debt collection can continue — and whether stronger corporate earnings ultimately translate into more reliable domestic energy supply and higher returns to the government.