The Presidency of Nigeria has declared that the 2025 financial performance of the Nigerian National Petroleum Company Limited (NNPCL) supports its decision to maintain the current fuel subsidy regime. According to Bayo Onanuga, Special Adviser to the President on Information and Strategy, the NNPCL's performance shows that reversing the subsidy removal would be detrimental to the country's economic growth. Onanuga made this statement in reaction to the NNPCL's key financial performance in 2025.
Onanuga disclosed that the NNPCL's Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) rose 22% to ₦18.0 trillion, while Earnings Per Share increased 32% to ₦35.9. Additionally, the company's Operating cash flow grew 16% to ₦12.8 trillion, and return on Equity improved by 200 basis points to 16%. The declared dividend also increased 35% to ₦5.8 trillion. These financial indicators demonstrate the positive impact of the current subsidy regime on the company's performance.
The NNPCL's operational performance in 2025 also showed significant improvements. Crude oil and condensate production averaged 1.77 million barrels per day, the highest level in five years. Natural gas output averaged 7.2 billion standard cubic feet per day, a three-year high. These production levels indicate a positive trend in the country's oil and gas sector. Furthermore, oil and condensate production totalled 565.8 million barrels, up 5%, with NNPC Limited's equity share increasing 11% to 223.7 million barrels.
The NNPCL's natural gas production also reached 2,606.2 billion standard cubic feet, up 9%, while its equity share rose 11% to 1,154.9 billion standard cubic feet. These increases in oil and gas production demonstrate the company's improved operational efficiency and its potential to contribute to Nigeria's economic growth. The Presidency believes that maintaining the current subsidy regime is crucial to sustaining this progress.
The statement from the Presidency was in response to a proposal by Atiku Abubakar, the presidential candidate of the African Democratic Congress, who suggested returning to the fuel subsidy regime if elected. The Presidency dismissed this proposal, stating that it would reverse the country's economic progress and harm the NNPCL. The company has the potential to become a major player in the global oil industry, similar to Aramco.
According to the Presidency, returning to the fuel subsidy regime would be a step backwards for Nigeria's economy. The current regime has allowed the NNPCL to achieve significant financial and operational improvements. The company has made progress in increasing its production levels and improving its financial performance. The Presidency believes that Nigeria should continue on its current path, rather than reverting to a previous system that may hinder its economic growth.
The Presidency's stance on the fuel subsidy regime is based on its assessment of the NNPCL's performance and its potential to contribute to Nigeria's economic growth. The company's 2025 performance demonstrates its ability to operate efficiently and generate significant revenue. The Presidency's decision to maintain the current subsidy regime is aimed at sustaining this progress and ensuring the long-term growth of the country's economy.
Key points
- The NNPCL's 2025 performance validates the Presidency's stance against returning to the fuel subsidy regime.
- The company's financial performance improved significantly in 2025, with EBITDA rising 22% to ₦18.0 trillion.
- The Presidency believes that returning to the fuel subsidy regime would reverse Nigeria's economic progress and harm the NNPCL.
