The Nigerian National Petroleum Company Limited (NNPCL) is facing mounting financial pressure as debts owed to it by its subsidiaries rose sharply to ₦30.30 trillion at the end of the 2024 financial year, according to reports released in January 2026.
The surge highlights deep structural challenges within the national oil company, particularly across its downstream and refining operations.
Financial disclosures show that inter-company receivables climbed by 70.4 per cent, increasing by about ₦12.52 trillion from ₦17.78 trillion recorded in 2023.
Despite the scale of the internal debt, NNPCL’s Group Chief Executive Officer, Bashir Bayo Ojulari, announced that the company posted a profit after tax of ₦5.4 trillion on total revenue of ₦45.1 trillion for 2024, underscoring what management described as a strong top-line performance.
The company’s borrowing profile also expanded significantly during the period. External loans more than doubled to ₦122.8 billion, with much of the funding reportedly directed toward capital-intensive projects, including the Gwagwalada Independent Power Project and other strategic infrastructure investments.
An analysis of the subsidiary accounts indicates that only eight out of NNPCL’s 32 subsidiaries were free of debt to the parent company. The heaviest obligations were concentrated in the refining segment.
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The Port Harcourt Refining Company emerged as the largest debtor, owing ₦4.22 trillion, followed by the Kaduna Refining and Petrochemical Company with ₦2.39 trillion and the Warri Refining and Petrochemical Company with ₦2.06 trillion.
In a major relief move, President Bola Tinubu approved the cancellation of a substantial portion of NNPCL’s legacy debts to the Federation Account in late December 2025.
The decision wiped off approximately $1.42 billion and ₦5.57 trillion in liabilities, effectively clearing about 96 per cent of the company’s dollar-denominated obligations and 88 per cent of its naira-denominated debts to the federation.
Looking ahead to 2026, NNPCL says it is pursuing an aggressive turnaround strategy. Key targets include raising crude oil production to 1.8 million barrels per day, attracting more than $30 billion in new investment by 2030, and accelerating the divestment of non-core assets such as pipelines and power plants to strengthen liquidity and improve financial sustainability.
