Sh*ckwave In Oil Sector: NNPCL Profit Crashes By 79.6% After Tax Clearance

The Nigerian National Petroleum Company Limited (NNPCL) has reported a steep drop in profit after tax, plunging from ₦905 billion in June to ₦185 billion in July.

This represents a sharp 79.6 per cent decline, according to the company’s monthly financial report released late Thursday.

The report further revealed that NNPCL’s total revenue also fell during the period, slipping from ₦4.57 trillion in June to ₦4.41 trillion in July.

Profit figures in previous months had shown a similar downward trend, with the oil giant recording ₦1.05 trillion in May and ₦926 billion in April before tumbling in June and July.

Interestingly, the profit slump occurred despite a slight increase in crude oil output, which rose from 1.68 million barrels per day (mbpd) in June to 1.7 mbpd in July. Gas production also edged up to 7.7 billion cubic feet (bcf), compared to 7.58 bcf the previous month.

Between January and June, statutory remittances to the government stood at ₦7.97 trillion, the company disclosed.

Despite the dip in profit, NNPCL emphasized its continued role in ensuring stable energy supply, highlighting efforts to improve production facility uptime and deepen collaboration with stakeholders to enhance operational efficiency.

Gas Infrastructure Milestones

The report also provided updates on ongoing gas projects.

For the Ajaokuta-Kaduna-Kano (AKK) pipeline, NNPCL announced the deployment of additional subcontractors to speed up mainline construction, noting that the project has reached 96 per cent completion.

Similarly, the Obiafu-Obrikom-Oben (OB3) pipeline has recorded 83 per cent progress, with a revised execution strategy underway to fast-track the River Niger Crossing segment.

NNPCL confirmed that the 113-kilometre portion of the OB3 pipeline is already operational, delivering about 300 million standard cubic feet per day (mmscf/d) of gas from producers such as AHL (250 mmscf/d), Platform, Chorus, and Xenergi (50 mmscf/d).

Reaffirming its long-term vision, the national oil company stated:

“We are sustaining crude oil and condensate production, improving uptime of production facilities, and strengthening stakeholder collaboration for greater efficiency.”

The NNPCL added that while profit margins narrowed in July, its strategic focus remains on completing key infrastructure projects, safeguarding energy security, and driving future profitability.