The Nigerian National Petroleum Company Limited (NNPC Ltd) has reported a steep decline in its financial performance, with its Profit After Tax (PAT) dropping to ₦216 billion in September 2025, a staggering 71% decrease from the ₦748 billion recorded in April, according to its latest monthly report.
This sustained downturn, observed from April to September, underscores significant challenges for the state-owned oil giant and raises concerns about its contributions to Nigeria’s treasury amid a volatile energy sector.
The PAT trend over the six-month period shows considerable volatility. Starting at ₦748 billion in April, profits surged to a peak of ₦1.05 trillion in May before declining to ₦905 billion in June.
The downward trajectory deepened in July with a PAT of ₦185 billion, followed by a partial recovery to ₦539 billion in August, before plummeting again to ₦216 billion in September.
NNPC noted that the September figure reflects adjustments to cost of sales and income tax, contributing to the sharp decline.
The profit slump coincides with a reported drop in crude oil production, driven in part by a three-day strike by the Petroleum and Natural Gas Senior Staff Association (PENGASSAN) in September. Engr. Bashir Bayo Ojulari, NNPC’s Group CEO, highlighted the impact, stating, “The Dangote and PENGASSAN issue led to a strike, making optimum production almost impossible.” The strike resulted in a loss of over 200,000 barrels per day, totaling more than 600,000 barrels over three days, alongside deferred gas production and a 1.2-megawatt reduction in power generation.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirmed a decline in crude oil production to 1.39 million barrels per day in September from 1.43 million barrels per day in August.
Additional factors included planned maintenance at the Nigeria Liquefied Natural Gas (NLNG) facility, phased recovery of shut-in assets, and delays in starting operations at Oil Mining Leases (OMLs) 71 and 72.
Financially, NNPC Ltd reported a revenue of ₦4.269 trillion in September, down from ₦4.655 trillion in August, reflecting groupwide revenues including intercompany transactions.
The company cautioned that all production, sales, and financial figures are provisional and subject to reconciliation with stakeholders.
As NNPC Ltd navigates production setbacks and global oil market volatility, its focus remains on stabilizing operations and advancing infrastructure projects like the 88% complete Ajaokuta-Kaduna-Kano (AKK) pipeline and the 96% complete Obiafu–Obrikom–Oben pipeline.
The company’s ability to address these challenges will be crucial for sustaining its financial contributions to Nigeria.
Administrator and Writer
