State oil company declares ₦5.8trn dividend as production reaches 1.77m bpd and gas output hits three-year peak
The Nigerian National Petroleum Company Limited (NNPC Ltd) increased profit after tax by 33 per cent to ₦7.2 trillion in 2025, while crude oil and condensate production reached a five-year high of 1.77 million barrels per day, underscoring a significant improvement in the company’s operating performance.
NNPC disclosed the figures on Tuesday while presenting its audited financial results for the year ended December 31, 2025, following its Annual General Meeting and second earnings call with financial and business analysts.
The company declared a ₦5.8 trillion dividend for the year, representing a 35 per cent increase from the previous year.
Despite a 24 per cent decline in revenue to ₦34.5 trillion, NNPC said stronger earnings reflected improved operational performance and resilience following the deregulation of the downstream petroleum market in 2024.
Profit rises despite lower revenue
NNPC’s 2025 profit compares with ₦5.4 trillion recorded in 2024.
Other key financial indicators also strengthened. EBITDA increased 22 per cent to ₦18 trillion, while earnings per share rose 32 per cent to ₦35.9.
Operating cash flow increased 16 per cent to ₦12.8 trillion, while return on equity improved by 200 basis points to 16 per cent.
The results indicate that the company’s higher profitability was driven less by top-line growth and more by improvements in operating performance and earnings conversion.
NNPC said the decline in revenue was largely linked to lower crude oil prices and reduced white-product volumes following the deregulation of the downstream market.
Oil production reaches five-year high
The strongest operational improvement came from upstream production.
NNPC reported average crude oil and condensate production of 1.77 million barrels per day, its highest level in five years.
Total oil and condensate production reached 565.8 million barrels, representing a five per cent increase over the previous year.
NNPC’s equity share rose by 11 per cent to 223.7 million barrels.
The increase comes as Nigeria continues efforts to restore crude production after years of underperformance caused by oil theft, pipeline vandalism, ageing infrastructure and investment constraints.
The company has set a target of 2 million barrels per day by 2027 and 3 million bpd by 2030.
Gas output hits three-year high
Natural gas production also increased, averaging 7.2 billion standard cubic feet per day, a three-year high.
Total gas production rose nine per cent to 2,606.2 billion cubic feet, while NNPC’s equity share increased 11 per cent to 1,154.9 billion cubic feet.
The company is targeting gas production of 12 billion cubic feet per day by 2030, reflecting its strategy to expand Nigeria’s gas economy alongside crude oil production.
AKK pipeline reaches major milestone
NNPC said it made progress on several strategic infrastructure projects during the year.
The company completed the 40-inch, 623-kilometre Ajaokuta-Kaduna-Kano (AKK) mainline, including the River Niger crossing.
It also commissioned the ANOH-OB3 Custody Transfer Metering Station and advanced the 300 million standard cubic feet per day ANOH Gas Processing Plant to start-up readiness.
The infrastructure is part of efforts to expand domestic gas supply, improve pipeline connectivity and support industrial and power-sector demand.
NNPC also acquired 500 CNG-powered trucks and adopted a Technical Equity Partnership Model as part of its broader strategy to reform and improve refinery operations.
NNPC targets $60bn investment
Looking ahead, NNPC said it plans to mobilise $60 billion in upstream, midstream and downstream investments by 2030.
The investment programme is expected to support its production targets and the completion of major gas infrastructure projects, including AKK, the Escravos-Lagos Pipeline System (ELPS) and the Obiafu-Obrikom-Oben (OB3) gas pipeline.
NNPC Group Chief Executive Officer, Engr. Bashir Bayo Ojulari, said the results reflected improvements in execution and workforce capability.
“Our 2025 performance shows what disciplined execution and a capable workforce can deliver. We are strengthening earnings, growing production and investing in the people and assets that will sustain value for our shareholders, communities and the Nigerian people,” Ojulari said.
Workforce and sustainability
NNPC said it continued to invest in human capital through its Talent-to-Value and Fit-for-Future programmes.
The company employed 1,023 full-time employees in 2025, including more than 1,000 graduates who joined the company after completing a one-year internship and training programme.
Women accounted for 23 per cent of leadership positions, compared with an industry average of 17 per cent cited by the company.
On sustainability, NNPC said it completed 6,028 cataract surgeries, planted 80,000 trees and developed its Net Zero 2050 strategy.
It also maintained reporting under the Oil and Gas Methane Partnership, Oil and Gas Decarbonization Charter and United Nations Global Compact frameworks.
Commercial transition
NNPC became a fully commercial, profit-driven company in July 2022 following the implementation of the Petroleum Industry Act 2021.
Its latest results therefore provide an important measure of the company’s performance as it transitions from its traditional role as a state-owned national oil corporation towards a commercially oriented energy company.
The combination of higher profit, increased oil and gas production and a larger dividend comes as Nigeria seeks to attract new investment into its petroleum sector and increase crude output.
The immediate challenge will be sustaining the production gains while mobilising the capital required to meet NNPC’s 2 million bpd and 3 million bpd oil-production targets and its planned $60 billion investment programme by 2030.