NNPCL: Beyond the Dainty Figures

Ndubuisi Francis writes that with the last financial report, the NNPCL has proven that if effectively and efficiently deployed, its potential can deliver energy that powers Nigeria’s growth, create value for its people, and position the nation competitively in the evolving global energy landscape

The recent unveiling of the 2024 Annual Financial Report of National Oil Company, Nigerian National Petroleum Corporation (NNPC) Ltd., is still generating massive interest and reviews in several quarters.

The financial highlights revealed that for the full year ended 2024, the company’s revenue stood at N45.1 trillion, a 88 per cent year-on-year growth, while Profit After Tax (PAT) was N5.4 trillion or 64 per cent year-on-year growth.

Earnings per share also came to N27.07, indicating a 64 per cent year-on-year growth.

Like the great poet, Henry Wadsworth Longfellow said, “The heights by great men reached and kept, were not attained by sudden flight, but they while their companions slept, were toiling upward in the night.”

What actually propelled the company to the impressive performance?

It attributed the result to several critical drivers, including enhanced operational efficiency across its assets, the positive impact of downstream market reforms, and an unwavering commitment to cost discipline.

With strengthened financial resilience and enhanced operational efficiency, the outcome was inevitable.

Perhaps, the company’s Chairman, Alhaji Ahamdu Musa Kida captured it more succinctly: “Through a combination of robust strategic initiatives,  NNPC Limited achieved significant milestones across the upstream,  midstream, and downstream sectors of the energy value chain in 2024.

“We recorded an increase in national production levels, peaking at 1.8 million mbpd, the highest since January 2022. This was made possible by the roll out of Accelerated Production Recovery Initiatives (APRI) championed by NNPC Limited.”

Kida noted that over the past year, the company proactively responded to industry challenges, guided by a commitment to sustainable value creation.

For the Group Chief Executive Officer of NNPC Ltd., Engr. Bashir Bayo Ojulari, three factors accounted for the impressive outcome.

He itemised them as operational efficiency and cost discipline, increased production and revenue, as well as the positive impact of downstream deregulation.

On the first, he said: “Over the last few months, we have seen NNPC implementing rigorous cost-optimisation measures across its operations, from upstream to downstream. This means we are producing more efficiently, reducing waste, and getting greater value for every Naira spent.”

He also noted that increased production and revenue assurance contributed to the 2024 financial outcome.

“We have seen improved uptime and performance from our assets and have made significant strides in tackling crude oil theft and pipeline vandalism, which has led to higher volumes of crude oil reaching the export terminals,” he added.

On the positive impact of downstream deregulation, he explained that the reforms in the downstream sector have allowed for a more market-reflective pricing structure, which has significantly reduced the previously massive financial burden of petrol subsidies on our books. 

“This has unlocked value and allowed our downstream operations to contribute positively to the bottom line.

In essence, this profit is a testament to the success of NNPC Ltd’s corporate transformation into a commercially focused and efficiently run entity,” Ojulari noted.

President Tinubu’s Mandate 

President Bola Tinubu gave the NNPC a mandate to attract sectoral investments to the tune of up to $30 billion by 2027; increase crude oil production by 2mbpd by 2027, among others.

How feasible are these?

For Ojulari who was appointed in April this year, substantial progress had been made, adding that in the area of investment attraction, NNPC is now pushing a deeper transparency drive. 

He said, “We saw them holding an earnings call for the first time, which is fundamentally targeted at building global investor confidence. We are now seeing a national oil company that is actively finalising deals and has a robust pipeline of bankable projects. 

“The declared $60 billion investment target  is a clear signal of this ambition, which surpasses the initial goal and shows the high level of market interest the company is generating,” Ojulari noted.

On production optimisation,  he stated that NNPC is relentlessly focused on such target, doubling down on the plan to reach 2 million barrels per day by 2027 . 

How are they going to achieve that? I think they are achieving that through:

· Rejuvenating its Assets: Investing in well-workovers and technology to boost output from existing fields.

Maximising the  Vast Assets

NNPC is reportedly  Africa’s biggest energy company by assets. Having vast assets is one thing; making them work  for the nation is another. The 2024 financials are the report card that shows that the Company is effectively “sweating those assets.”

 Today, the NNPC is moving from a culture of mere ownership to one of active, strategic asset management. 

The N5.4 trillion profit is the direct financial proof that these assets are no longer just dormant on the balance sheet, but are active, revenue-generating engines for the Nigerian economy.

The 2025 Financials in View

For Ojulari, “The momentum which NNPC Ltd has built in 2024 provides a powerful launchpad for 2025 and beyond. While the Company cannot pre-empt its full-year results, today, all its key performance indicators are pointing towards a positive direction. We expect the full-year benefits of its cost-saving initiatives and production optimization efforts to become even more pronounced. “

According to him, NNPC Ltd’s focus is not just on the next fiscal year, but on the next decade. 

According to him, the major projects which the company is advancing today are what will secure its performance for years to come.

“Looking ahead, NNPC Ltd’s future is being forged by critical national projects like the AKK Gas Pipeline and the OB-3 Gas Link Line. These are not just pipelines; they are the arteries that will fuel Nigeria’s industrial revolution, powering homes, industries, and creating a vibrant gas-based economy. 

“They will unlock billions of dollars in investment, create millions of jobs, and provide a stable, low-carbon energy source for generations. 

“These projects, alongside NNPC Ltd’s refinery rehabilitation efforts, are fundamental to its long-term strategy. They will diversify NNPC Ltd’s revenue streams, enhance its safeguarding of Nigeria’s energy security, and firmly establish the Company not just as an African energy champion, but as a competitive and resilient global energy company.”

The FAAC Injections

In the first three quarters of 2025, the Federation Account got  a sizeable injection with the Federation Account Allocation Committee (FAAC) reporting that a total of N2.359 trillion in outstanding revenue arrears was reconciled and paid to the federal government and subnational governments between January and September.

According to FAAC’s detailed report for November 2025, sighted by THISDAY, the inflows were sourced from crude sales, royalty arrears, domestic gas payments and other under-remitted revenues, which helped to moderate pressure on monthly allocations amid continuing fiscal strain on the three tiers of government.

Sustaining the Profitability Curve 

Making a hair-raising profit is one thing, but sustaining and even surpassing the mark is another.

For Ojulari, the present management of the state oil company does not believe in flukes or flash-in-the-plan achievements.

“Records on ground show that the goal is not just a one-off peak, but a trajectory of sustainable and resilient profitability by the NNPC. This is a company coming from a serious negative bottom line five, six years ago. I want to believe that the foundations already laid make us confident that this is not a flash in the pan.

“Today’s NNPC is transitioning from a period of recovery to a phase of structured growth. As a keen follower of developments within the organisation, my confidence comes from: Rigorous Capital Allocation: NNPC is investing its profits back into high-return projects that will generate future cash flows.

· The Gas & Renewable Energy Expansion: The Company is aggressively developing its gas infrastructure and low-carbon energy portfolio, which are key growth markets for the future.

· Continued Operational Excellence: The cost discipline and efficiency drives are now embedded in NNPC Culture.”

But while acknowledging that commodity prices will always cause some fluctuation, he believes  the underlying health and strategic direction of NNPC Ltd are, today, stronger than ever. 

“We are witnessing an organisation that is gradually being built to deliver robust financial returns through cycles, ensuring that the Federation and the Nigerian people can depend on its earnings for the long term,” he enthused.

Nothing can inspire greater confidence than the records.

From a loss-making company to profitability.

In 2018, it posted a loss of N803 billion, another loss of  N1.7 billion in 2019, and the first ever profit of N287 billion in 2020.

The profit margin rose to N674.1 billion  in 2021, and N2.548 trillion in 2022 — the highest since inception at that time.

For 2023, it recorded a profit of N3.297 trillion, and capped it with the 2024 profit of N5.4 trillion — a 64 per cent increase from 2023 

With the Ojulari-led NNPC management fully conscious that they cannot drop the ball at this stage, perhaps it is fitting to remind them that as Francois Henri Pinault once said, “Sustainable development is a fundamental break that’s going to reshuffle the entire deck. There are companies today that are going to dominate in the future simply because they understand that.”  

And in the words of Abraham Maslow, “In any given moment, we have two options: to step forward into growth or step back into safety.”

The latter can definitely not be an option for a forward-looking team, particularly when its pivotal role on the economy is keenly watched.