The Nigerian National Petroleum Company Limited (NNPC Ltd.) reduced its general and administrative expenses by 28 per cent to approximately N2.6 trillion in 2025, while its profit after tax increased by 33 per cent to N7.2 trillion, according to the company’s audited financial results.
The cost reduction came amid a 24 per cent decline in revenue, which fell to N34.5 trillion, largely because of lower crude oil prices and reduced white-product volumes following the deregulation of the petrol market in 2024.
NNPC Group Chief Executive Officer, Bashir Bayo Ojulari, said the reduction in administrative expenses reflected sustained cost optimisation, greater use of internal resources and tighter control of the company’s cost base.
The figures indicate that NNPC’s improved profitability was not driven solely by higher revenue. The company also benefited from stronger operational performance and financial discipline. Operating cash flow increased by 16 per cent to N12.8 trillion, while earnings before interest, taxes, depreciation and amortisation rose by 22 per cent to N18 trillion. Return on equity also improved by two percentage points to 16 per cent.
Production performance provided additional support. NNPC reported a five per cent increase in oil and condensate production and a nine per cent rise in natural gas production during the year. Equity volumes across oil, condensate and gas increased by 11 per cent.
The company’s gas operations recorded notable growth, with gas transmission volumes rising by 18 per cent, sales volumes by 12 per cent and LNG volumes by 11 per cent. NNPC attributed the broader production improvement to new wells, targeted interventions, improved asset integrity and stronger operational reliability.
However, the company’s financial performance also reflects significant pressure within its downstream business. White-product sales fell by 60 per cent, which NNPC linked to the structural changes that followed petrol price deregulation.
Independent analysis of the company’s 2025 accounts similarly identified lower administrative expenses, increased other income and reversals of previous impairment provisions among the factors supporting profitability despite weaker revenue.
NNPC declared a dividend of N5.8 trillion for 2025, representing a 35 per cent increase from the previous year. The company said the results demonstrate improved earnings capacity and provide a stronger platform for future investment across the energy value chain.
The company is targeting further increases in oil and gas production over the coming years, alongside investments in upstream, midstream and downstream infrastructure. Its stated ambition includes mobilising $60 billion in investments by 2030 and increasing crude oil production to three million barrels per day by 2030.
The latest results therefore place greater emphasis on cost management and operational efficiency as NNPC navigates lower oil prices, changing downstream market conditions and the wider transformation of Nigeria’s petroleum industry under the Petroleum Industry Act.
NNPC cuts administrative expenses by 28% to N2.6 trillion in 2025 as profit after tax rises 33% to N7.2 trillion despite lower revenue.
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