The Nigerian National Petroleum Company Limited (NNPC Ltd.) has announced a record N5.4 trillion Profit After Tax (PAT) for the 2024 financial year, driven by sweeping operational reforms, aggressive cost reductions, and improved market conditions.
According to its newly released audited financial statement, NNPC generated N45.1 trillion in revenue, marking an 88% jump from 2023, while profit rose by 64%. Earnings per share increased to N27.07, also up 64% year-on-year.
Operational discipline pays off
The company attributed the strong performance to enhanced efficiency across its upstream, midstream, and downstream assets, as well as deliberate cost-cutting measures that trimmed total spending by 15–20%.
Group Chief Executive Officer, Bayo Ojulari, said the company’s transformation strategy is gaining traction, noting that the floating of the naira helped boost earnings during the year.
“We cut unnecessary spending, optimised our operations and focused on value,” he said. “We are now on a stronger path of operational and financial discipline.”
Ambitious production targets set
Ojulari reaffirmed NNPC’s targets to ramp up crude oil production to 2 million barrels per day (bpd) by 2027, and 3 million bpd by 2030. Natural gas output, he added, is expected to rise to 10 bcf/d by 2027 and 12 bcf/d by 2030.
He disclosed that key gas infrastructure—such as the Ajaokuta–Kaduna–Kaduna (AKK) pipeline, the OB3 line and the Escravos–Lagos Pipeline System (ELPS)—is nearing completion, unlocking new revenue and domestic supply opportunities.
Refinery revival to rely on partnerships
With Nigeria’s state-owned refineries still dormant, Ojulari said NNPC is seeking technical partnerships with private refinery operators that have a proven track record. These collaborations, he emphasised, will be purely commercial arrangements.
A clearer timeline for restoring refining capacity is expected by mid-2026, he noted.
Chairman: Energy transition offers opportunity
NNPC Chairman, Ahmadu Kida, said Nigeria remains well placed to meet rising domestic and global energy demand while gradually transitioning to cleaner fuels. He said the company’s new leadership has set the tone for “transformational growth” across the entire energy value chain.
“We will consolidate the gains of 2024 and strengthen Nigeria’s position as a regional gas hub,” he stated.
Auditors affirm financial strength
Independent auditors—including PwC, SIAO and Muhtari Dangana & Co.—confirmed that NNPC’s financial statements align with the going-concern principle and that no material issues threaten the company’s stability in the next 12 months.
NNPC’s profits have been on a steady upward trajectory in recent years, rising from N287 billion in 2020 to N3.297 trillion in 2023, before reaching this year’s record N5.4 trillion.
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