NNPC Reports N502bn Profit, Lowers Petrol Below N800/Litre
Profitability and Strategic Adjustments
The Nigerian National Petroleum Company Limited (NNPC) recorded a profit after tax of N502bn in November 2025, maintaining its profitability streak despite a decline in crude oil and condensate production during the month. This performance highlights the company's resilience and adaptability in a challenging market environment.
In addition to its financial success, NNPC joined an intensifying price war in the downstream sector by cutting the pump price of petrol below N800 per litre. This move was aimed at remaining competitive in a market that has seen significant changes due to increased domestic refining capacity.
Financial Performance and Revenue Growth
According to the NNPC Monthly Financial and Operations Report for November 2025, the company generated N4.36tn in revenue during the month, showing a marginal increase compared with October. The improved performance was attributed to stronger gas output, full pipeline availability, and steady domestic fuel supply, which helped offset challenges in crude oil production.
Crude oil and condensate production averaged 1.36 million barrels per day in November, recovering slightly from the 1.30mbpd recorded in October. However, this figure remained below the year’s peak of 1.77mbpd achieved earlier in 2025. The November figure marked the first rebound after three consecutive months of decline between August and October.
Gas production, however, remained relatively resilient. Output stood at 6,968 million standard cubic feet per day in November, compared with 6,997mmscf/d in October. This underscores the continued role of gas in stabilizing the company’s operational performance amid crude-related disruptions.
Operational Challenges and Improvements
Despite operational challenges in some crude-producing assets, the N502bn profit recorded in November was driven by improved gas production, strong trading performance, and sustained infrastructure availability. The November profit represented a slight improvement on October’s performance, consolidating the company’s strong earnings momentum in the second half of the year.
Revenue for the month stood at N4.358tn, driven largely by gas sales, trading activities, and improved infrastructure uptime. Cumulatively, statutory payments to the Federation Account rose to N12.12tn between January and October 2025, highlighting NNPC’s growing fiscal contribution to government revenues at a time of heightened pressure on public finances.
Crude Oil Production Trends
Data from the report showed that crude and condensate output in November benefited from partial recovery at some assets following earlier disruptions. Production averaged 1.36mbpd, compared with 1.30mbpd in October, representing an increase of about 60,000 barrels per day month-on-month. However, output remained below levels recorded in the first half of the year, when production averaged above 1.40mbpd between January and July.
Production declined steadily from 1.38mbpd in August to 1.37mbpd in September and 1.30mbpd in October, before the modest rebound in November. NNPC attributed the subdued performance to ongoing repairs on the Forcados export line (OML 30), a force majeure at Egbema (OML 61), and delays in achieving first oil from the West African Exploration Project.
Petrol Price Cuts and Market Competition
While posting strong earnings, NNPC also adjusted to changing dynamics in the downstream market. The company dropped the price of Premium Motor Spirit (petrol) below N800 per litre, joining an intensifying price war triggered by recent cuts by the Dangote refinery.
This development came about three weeks after the Dangote refinery slashed the ex-depot price of petrol from N828 to N699 per litre and directed all MRS filling stations to adjust pump prices to N739 from around N900 per litre. Checks showed that the state-owned oil company, which serves as a supplier of last resort, was selling petrol at about N875 per litre two weeks earlier when MRS began selling at N739 per litre. A week later, NNPC reduced prices to between N825 and N845 per litre, depending on location.
Many NNPC filling stations in Lagos and Ogun states reportedly struggled to attract customers as motorists opted for cheaper fuel at rival outlets. In response, NNPC joined the fray by slashing pump prices below N800 per litre to retain customers. Checks on Wednesday confirmed that some NNPC filling stations along the Lagos-Ibadan Expressway sold petrol at N785 per litre, enabling them to compete with nearby outlets.
Gas Production and Infrastructure Development
Meanwhile, in contrast to crude output, gas production remained comparatively stable throughout 2025. November output of 6,968mmscf/d was broadly in line with October’s 6,997mmscf/d, following a rebound from a sharp dip to 6,284mmscf/d in September. Earlier in the year, gas production peaked at 7,722mmscf/d in July before moderating in the third quarter.
Gas sales, reported on a two-month lag basis, stood at 4,650mmscf/d in November, slightly lower than the 4,713mmscf/d recorded in October, but significantly higher than September’s 3,443mmscf/d. The sustained gas performance reinforced NNPC’s strategic push to deepen gas monetisation as Nigeria positions itself as a regional gas hub and transitions to a lower-carbon energy mix.
Upstream and Downstream Operations
Upstream pipeline availability reached 100 per cent in November, an improvement that helped stabilise production and evacuation during the period. On the downstream front, PMS availability across NNPC Retail Limited stations stood at 61 per cent, while the company’s nationwide wetness map indicated moderate to high fuel availability across most states, easing supply concerns that had flared intermittently earlier in the year.
NNPC also disclosed significant progress on key gas infrastructure projects during the month. The Ajaokuta–Kaduna–Kano gas pipeline achieved completion of its mainline welding and pressure testing and is now on track for completion in 2026. Similarly, work progressed on the Obiafu-Obrikom-Oben gas pipeline, with geotechnical data acquisition completed at the River Niger crossing and early construction works underway ahead of drilling.
Corporate Recognition and Social Responsibility
Beyond operations, the NNPC Foundation recorded major recognition in November, winning five awards at the 2025 SERAS Sustainability Africa Awards, including Most Responsible Organisation in Africa and Best in Gender Equality. The Foundation also reported that the rehabilitation of three wards at the National Orthopaedic Hospital, Igbobi, Lagos, had reached 90.1 per cent completion as of November 30.
Post a Comment