The Nigerian National Petroleum Company (NNPC) Limited has committed N11.2 trillion toward securing Nigeria's oil and gas infrastructure throughout 2025. This significant expenditure is aimed at curbing crude oil theft, pipeline vandalism, and production disruptions. According to BusinessDay's analysis of the company's 2025 financial report, the N11.2 trillion represents 34 percent of its total revenue.
The cost incurred in protecting oil and gas assets is titled 'other receivables from the federation' and relates to advance payment to the federation and security costs. This expenditure is carried out under the framework of an approval between the government of Nigeria and the Group to incur security costs and charge the same to the federation. In addition to security costs, the company recorded depreciation and depletion of oil and gas properties valued at N3.70 trillion.
The company's financial report also revealed that depreciation of other property, plant, and equipment was valued at N665.769 billion, while depreciation of right-of-use assets was valued at N109.3 billion. Despite significant expenditures, NNPC Limited recorded a significant increase in its Profit After Tax in 2025, which rose by 33 percent to N7.2 trillion from N5.4 trillion in 2024.
The company's revenue stood at N34.5 trillion, with a 22 percent increase in EBITDA to N18.0 trillion. Earnings Per Share increased by 32 percent to N35.9, while operating cash flow grew by 16 percent to N12.8 trillion. Return on Equity improved by 200 basis points to 16 percent, and the declared dividend increased to N5.8 trillion.
In terms of production, crude oil and condensate production averaged 1.77 million barrels per day, representing the highest level in five years. Natural gas output averaged 7.2 billion standard cubic feet per day, a three-year high. The company's equity share of crude oil and condensate production increased by 11 percent to 223.7 million barrels.
NNPC Limited also reported progress across its portfolio, including the completion of the AKK River Niger crossing and full completion of the 40-inch by 623-kilometre Ajaokuta-Kaduna-Kano mainline. The company commissioned the ANOH-OB3 Custody Transfer Metering Station and advanced the 300MMscfd ANOH Gas Processing Plant to start-up readiness.
Looking ahead, NNPC Limited is targeting crude oil production of 2 million barrels per day by 2027 and 3 million barrels per day by 2030, alongside natural gas output of 12 billion standard cubic feet per day by 2030. The company plans to mobilise $60 billion in upstream, midstream, and downstream investments by 2030 and complete major gas infrastructure, including AKK, ELPS, and OB3.
Key points
- NNPC Limited commits N11.2 trillion to securing oil and gas infrastructure in 2025.
- The company's Profit After Tax increases by 33 percent to N7.2 trillion in 2025.
- NNPC Limited targets crude oil production of 3 million barrels per day by 2030.
