NNPC Retail Limited, the downstream subsidiary of the Nigerian National Petroleum Company (NNPC) Limited, recorded a significant loss of N395.5 billion for the financial year ending December 31, 2024, according to its annual report sighted on September 10, 2025. This marks a sharp decline from the N20.18 billion profit posted in 2023, driven largely by non-recurring transactions and economic challenges.
The 2024 financial report revealed a modest 3.6% revenue increase, from N717.3 billion in 2023 to N743.2 billion in 2024. However, a 70% surge in the cost of sales, from N614.6 billion to N1.04 trillion, significantly impacted the company’s financial performance. Operating expenses also rose sharply by 143%, from N62.1 billion in 2023 to N150.8 billion in 2024.
In a statement within the financial report, NNPC Retail’s directors attributed the loss to non-recurring transactions, including a N117 billion impairment of receivables and a N133.9 billion expense related to reconciliation differences on intercompany ledger balances. “These items are not expected to recur in future periods,” the directors noted, emphasizing the company’s historical profitability under both its former identity, OVH Energy Marketing Limited, and the rebranded NNPC Retail Limited.
The directors expressed confidence in a return to profitability, citing NNPC Retail’s strong market share in sourcing, distributing, retailing, and marketing petroleum products in Nigeria. They also highlighted that 38% of the company’s current liabilities (N526.6 billion) are balances with related parties under NNPC Limited’s control. Excluding these, NNPC Retail would be in a positive net current asset position. NNPC Limited has confirmed ongoing financial support for at least the next 12 months.
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The financial downturn follows NNPC’s acquisition of OVH Energy in 2022, a move described as strategic to expand operations and attract investments into Nigeria’s downstream sector. However, the acquisition has faced scrutiny. In August 2024, the National Assembly invited stakeholders for a forensic investigation into alleged “irregularities” and “corruption” in the NNPC–OVH deal. Additionally, in 2023, a Federal Capital Territory (FCT) High Court approved a hearing for a suit seeking to compel the refund of over N140 billion allegedly linked to the acquisition.
Industry observers are watching closely as NNPC Retail finalizes its 2024 financials and navigates ongoing economic and operational challenges. The company remains optimistic about its long-term sustainability, supported by its established market position and NNPC Limited’s backing.
