By Aisha Muhammad Magaji
The Nigerian National Petroleum Company Limited (NNPCL) has reported a significant rise in profit, announcing ₦539 billion for August 2025, a 91 percent increase compared to ₦185 billion in July.
According to the company’s August financial and operations report, revenue for the month also increased to ₦4.655 trillion, up from ₦4.406 trillion in July. From January to July 2025, the company said it had remitted ₦8.86 trillion to the Federation Account.
Despite the improved profit, crude oil output dropped slightly to an average of 1.65 million barrels per day in August, compared to 1.70 million barrels per day in July. Natural gas production also fell by about 10 percent to 6,949 million standard cubic feet per day, from 7,722 million standard cubic feet per day recorded previously.
NNPCL explained that the decline was largely due to scheduled maintenance activities on some upstream facilities, including the turnaround maintenance carried out by Nigeria LNG.
“Planned maintenance is a critical part of ensuring asset integrity and long-term reliability,” the company said. “While it temporarily reduces output, the aim is to sustain production efficiency and maximize returns in subsequent months.”
The surge in profit comes amid structural reforms at the company following its transition under the Petroleum Industry Act (PIA) of 2021, which converted the former corporation into a limited liability company.
In April 2025, President Bola Tinubu appointed Bashir Bayo Ojulari as the new Group Chief Executive Officer (GCEO), replacing Mele Kyari, while Ahmadu Musa Kida was named non-executive chairman.
Ojulari, speaking on the company’s outlook, said: “Our strategy is clear. We want to strengthen NNPCL’s balance sheet, expand our footprint in global energy markets, and invest in gas infrastructure that will drive Nigeria’s long-term competitiveness.”
Energy analysts, however, warned that declining production levels remain a concern.
“The rise in profit provides some relief for government revenues at a time when Nigeria is grappling with fiscal pressures,” said energy analyst Akinwumi Adeoye. “But persistent challenges such as oil theft, pipeline vandalism, and underinvestment in infrastructure could undermine these gains if not addressed.”
Economist Hauwa Bello also stressed the need for sustainability. “NNPCL’s profit growth is encouraging, but if production continues to decline, the company may struggle to maintain this level of profitability. The focus should be on efficiency, transparency, and diversifying energy sources,” she said.
Going forward, NNPCL said it will prioritize gas and refining projects to cut dependence on imports and stabilize domestic supply. The company also plans to pursue $60 billion in gas infrastructure projects over the coming years.
