The Nigerian National Petroleum Company Limited (NNPC), the country’s state-owned oil giant, on Thursday, August 21, reported a steep decline in its financial performance for July 2025. Profit after tax plummeted to N185 billion, down from N905 billion in June 2025, marking a 79.6 percent drop. This sharp reduction highlights ongoing challenges in the oil sector, even as production volumes showed modest gains.
The company’s total revenue also slipped during the month, reaching N4.41 trillion compared to N4.57 trillion in June 2025. Despite the financial setback, NNPC emphasized its commitment to maintaining steady operations. In a statement, officials noted efforts to sustain crude oil and condensate production while enhancing the reliability of production facilities through better collaboration with stakeholders and improved efficiency measures.
On the production front, there were some positive developments. Crude oil output edged up from 1.68 million barrels per day in June 2025 to 1.7 million barrels per day in July 2025. Natural gas production also increased slightly, rising from 7.58 billion cubic feet to 7.7 billion cubic feet over the same period. These increments suggest that operational tweaks are yielding results, though they were not enough to offset the broader revenue and profit declines.
Looking back at earlier months, NNPC’s profits had been on a fluctuating trajectory. In May 2025, the company posted N1.05 trillion in profit after tax, while April 2025 saw N926 billion. The July figures represent the lowest in this recent sequence, raising questions about potential factors like market volatility or internal costs, though specifics were not detailed in the report.
Beyond finances, NNPC provided updates on key infrastructure projects aimed at bolstering Nigeria’s energy capabilities. The Ajaokuta-Kaduna-Kano gas pipeline, a major initiative to transport natural gas across northern regions, reached 96 percent completion by July 2025. To speed up the remaining work, additional subcontractors were brought on board. Similarly, the Obiafu-Obrikom-Oben gas pipeline advanced to 83 percent completion, with a revised strategy implemented to tackle the challenging River Niger crossing.
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A notable milestone was the commissioning of a 113-kilometer section of the Obiafu-Obrikom-Oben pipeline in July 2025. This segment is now operational, carrying approximately 300 million standard cubic feet of gas per day. Contributions come from various producers, including AHL at 250 million standard cubic feet per day, and a combined 50 million from Platform, Chorus, and Xenergi. This development is expected to improve gas supply reliability and support industrial growth in connected areas.
It bears mentioning that from January to June 2025, NNPC made statutory payments totaling N7.97 trillion, underscoring its role in contributing to national revenues despite the profit squeeze. These payments include taxes and royalties that fund government programs.
Industry observers note that NNPC’s performance is closely tied to global oil prices, domestic security in oil-producing regions, and policy shifts. While the company did not attribute the July drop to any single cause, the figures come at a time when Nigeria continues to grapple with economic pressures, including inflation and currency fluctuations. NNPC’s focus on infrastructure like the pipelines could help stabilize future earnings by diversifying energy sources and reducing import dependencies.
It is worth noting that as Nigeria’s primary oil entity, NNPC plays a pivotal role in the economy, employing thousands and driving exports. The recent dip serves as a reminder of the sector’s vulnerabilities, but the uptick in production and project advancements offer glimmers of resilience. Stakeholders will be watching closely for August 2025 results to see if this is a temporary blip or part of a longer trend.
