The Nigerian National Petroleum Company Limited (NNPC Ltd.) has reduced its general and administrative expenses by 28% to N2.6 trillion in 2025, as part of a cost-optimisation drive aimed at protecting profitability. This move reflects the company's efforts to maintain a stable financial performance despite a softer global oil price environment. According to NNPC Ltd.'s Group Chief Executive Officer, Bashir Bayo Ojulari, the reduction in administrative expenses was driven by sustained cost optimisation and greater utilisation of internal resources.
The company's cost structure remained broadly aligned with activity levels, despite a lower revenue environment, helping to preserve profitability during the year. Ojulari stated that the cost discipline formed part of a broader strategy focused on factors within the company's control, including operational reliability, capital discipline, and execution excellence. This approach has enabled NNPC Ltd. to maintain its financial stability and achieve a profit after tax of N7.2 trillion, representing a 33% increase.
NNPC Ltd.'s performance in 2025 was achieved against a mixed global and domestic economic backdrop. Globally, geopolitical tensions, trade frictions, and increased supply from both OPEC+ and non-OPEC+ producers contributed to a softer oil price environment. However, the company's oil and condensate production continued to recover, increasing by 5%, while natural gas production grew by 9%. These gains were driven by improved operational efficiency and asset reliability.
The company's gas business recorded particularly strong growth, with gas transmission volumes rising by 18%, sales volumes increasing by 12%, and LNG volumes growing by 11%. Ojulari attributed the growth in oil and condensate production to new well additions, targeted interventions at OML 13, and improved asset integrity. The company also adopted a more proactive approach to asset maintenance, which improved reliability and uptime across the portfolio.
Despite the positive performance, NNPC Ltd. faced challenges in its downstream market role following gasoline price deregulation in 2024. White products sales declined by 60%, according to Ojulari. However, the company's financial results improved, with operating cash flow increasing by 16% to N12.8 trillion and return on equity rising by 200 basis points to 16%.
NNPC Ltd. also reported progress across its environmental, social, and governance agenda. The company expanded access to cleaner energy through the delivery of nine new compressed natural gas (CNG) sites, taking its total network to 19 stations. Its social-impact programmes included the facilitation of over 6,000 cataract surgeries and financial literacy and workforce-readiness training for over 300,000 National Youth Service Corps members.
Looking ahead, NNPC Ltd. is targeting further growth across its integrated value chain. The company aims to increase oil and condensate production to three million barrels per day and natural gas production to 12 billion standard cubic feet per day. It also plans to expand gas monetisation through investments in infrastructure, LNG, and gas-based industries, while repositioning its power business and transforming its trading business.
Key points
- NNPC Ltd. reduced administrative expenses by 28% to N2.6 trillion in 2025.
- The company's profit after tax increased by 33% to N7.2 trillion.
- NNPC Ltd. aims to increase oil and condensate production to three million barrels per day.
