The Nigerian National Petroleum Company Limited (NNPC Ltd.) recorded a significant decline in revenue in 2025, with its group revenue falling by ₦10.56 trillion compared with the previous year.
According to the company’s audited 2025 financial report, NNPC’s revenue dropped 23.4 per cent, from ₦45.08 trillion in 2024 to ₦34.52 trillion in 2025. The decline was largely driven by lower earnings from petroleum products and crude oil.
Revenue from petroleum products suffered the biggest decline, falling by 77.6 per cent, from ₦9.68 trillion in 2024 to ₦2.17 trillion in 2025.
Crude oil, which remained NNPC’s largest source of revenue, also recorded a decline. Earnings from crude oil fell by 13.1 per cent, from ₦29.21 trillion in 2024 to ₦25.39 trillion in 2025. Crude oil accounted for about 74 per cent of NNPC’s total group revenue during the year.
NNPC attributed the overall revenue decline principally to lower crude oil prices and reduced white-product volumes following the deregulation of the downstream petroleum market.
Despite the revenue decline, however, the company reported a significant increase in profit.
NNPC’s profit after tax rose to ₦7.2 trillion in 2025, representing an increase of about 33 per cent from the ₦5.4 trillion recorded in 2024. The company said improved operational efficiency and stronger cost discipline helped it achieve the higher profit.
The company also recorded growth in some other areas of its business.
Revenue from natural gas increased by 18.3 per cent, rising from ₦5.20 trillion in 2024 to ₦6.15 trillion in 2025. Power revenue also increased by 25.4 per cent, although it remained a relatively small part of the company’s overall earnings.
NNPC’s earnings before interest, taxes, depreciation and amortisation also increased by 22 per cent to ₦18 trillion, while operating cash flow grew by 16 per cent to ₦12.8 trillion.
The company said its taxes, royalties and other remittances to the Federal Government increased by 39 per cent to ₦22.3 trillion during the year. It also declared a ₦5.8 trillion dividend, according to its audited results.
The financial results highlight a major change in NNPC’s business performance: although the company generated considerably less revenue, it was able to retain more earnings through cost control, improved operations and other income.
NNPC’s management has also pointed to improvements in oil and gas production. Crude oil and condensate production reached a five-year high of about 1.77 million barrels per day, while domestic gas supply also increased.
The results are important for Nigeria because NNPC remains one of the country’s biggest sources of government revenue and foreign exchange.
However, the heavy dependence on crude oil means the company remains exposed to changes in international oil prices and production levels.
The 2025 results therefore show both progress and challenges for Nigeria’s petroleum sector. While improved profitability and production provide positive signs, the sharp fall in revenue demonstrates the impact that lower oil prices and changes in the downstream market can have on NNPC’s finances.
