NNPCL has posted ₦539bn profit as gas and crude production drop, buoying government revenues amid fiscal strain, in the Africa’s most populated country.
Nigeria’s state-owned oil company has reported a sharp jump in profits for August despite lower oil and gas production, offering a rare boost to the country’s strained public finances.
The Nigerian National Petroleum Company Limited (NNPCL) announced that it earned ₦539 billion in profit for August 2025, a 91 percent rise from July’s ₦185 billion. Monthly revenue also climbed to ₦4.655 trillion, up from ₦4.406 trillion a month earlier.
Between January and July, the company remitted ₦8.86 trillion into the Federation Account — the central pool from which Nigeria’s federal, state, and local governments draw funds — underscoring its critical role in financing public spending.
The strong earnings came in spite of lower production levels. Average crude output fell to 1.65 million barrels per day in August, down from 1.7 million in July. Gas production also slipped by almost 10 percent, dropping from 7,722 million standard cubic feet per day to 6,949 mmscf/d.
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NNPCL attributed the output declines to scheduled maintenance at several upstream facilities, including turnaround maintenance at the Nigeria LNG plant.
Industry analysts say the results suggest improved efficiency and stronger pricing margins, pointing to possible gains from the company’s downstream operations, which include refining, marketing, and distribution.
The firm also highlighted progress on key infrastructure projects designed to boost Nigeria’s gas supply. The Ajaokuta–Kaduna–Kano (AKK) pipeline is now 84 percent complete, while the Obiafu–Obrikom–Oben (OB3) pipeline has reached 96 percent completion. More than 113 kilometers of the OB3 pipeline are already operational, delivering roughly 300 mmscf/d of gas from multiple producers.
Analysts say the robust financial performance will likely strengthen investor confidence in NNPCL’s ongoing transformation since its transition to a limited liability company. The company has been seeking to operate on a more commercial footing while maintaining its role as a major contributor to government revenue.
However, experts caution that sustaining these profits will require stabilizing production, securing oil infrastructure against theft and sabotage, and completing gas projects that could unlock additional revenue for Africa’s largest economy.
