The Nigerian National Petroleum Company Limited (NNPCL) has reported a record N7.2 trillion profit after tax for the 2025 financial year, even as its revenue declined significantly amid lower crude oil prices and changes in the downstream petroleum market.
The company’s 2025 Annual Financial Report, analysed on Monday, showed that profit after tax increased by 33 per cent compared with the previous year, while earnings before interest, taxes, depreciation and amortisation rose by 22 per cent.
Operating cash flow also increased by 16 per cent, allowing NNPCL to declare about N5.8 trillion in dividends, up from N4.3 trillion declared in 2024.
The improved profitability came despite a roughly 24 per cent decline in revenue, which NNPCL attributed largely to lower crude oil prices and reduced petroleum product sales following structural changes in the downstream sector.
NNPCL Financial Controller, Tajudeen Kareem, explained that average crude oil prices fell from about $79-$80 per barrel in 2024 to approximately $69 per barrel in 2025.
The company also sold about 12 billion fewer litres of petroleum products during the year as its participation in the downstream market changed.
However, Kareem said the decline in revenue did not necessarily represent a deterioration in the company’s performance, as management shifted its focus towards higher-margin activities and tighter cost control.
“This is why the decline in revenue should not be automatically interpreted as deterioration in the business,” he said, noting that not every naira of revenue generates the same level of value.
NNPCL’s cost of sales ratio improved from 74 per cent to 73 per cent, while general and administrative expenses fell by 28 per cent as part of its cost-optimisation strategy.
The company also recorded a 28 per cent reduction in net debt, supported by stronger cash generation and improved recovery of receivables.
Employee Retention Remains High
Beyond its financial performance, the report revealed strong employee retention across the organisation, with no voluntary withdrawals recorded among employees below the retirement age for the second consecutive year.
Workers aged 30 and below, 31–39, 40–44, 45–49, 50–54 and 55–59 all recorded a zero per cent withdrawal-from-service rate in both 2024 and 2025.
The only 100 per cent withdrawal rate recorded was among employees aged 60, reflecting retirement at the applicable age.
NNPCL’s Chief Corporate Communications Officer, Andy Odeh, attributed the strong retention to employees’ confidence in the company’s future, career opportunities, job security and the desire to participate in the company’s transformation.
According to Odeh, retention in the energy sector is influenced by more than remuneration, with employees also looking for career development, workplace safety, job security and a sense of purpose.
He said NNPCL’s transition from a corporation into a commercially driven limited liability company had created an opportunity for employees to participate in what could become a major chapter in Nigeria’s energy industry.
Odeh said the challenge for management was not merely preventing employees from leaving but identifying and strengthening the factors that encourage them to stay.
Commercial Transformation
Kareem said NNPCL’s transition to a commercially driven organisation had also increased the importance of financial discipline, noting that the company could no longer depend on government support in the manner it did before the Petroleum Industry Act.
He said the company must continue to operate efficiently, manage costs and generate sufficient returns to sustain its operations.
Looking ahead, NNPCL plans to concentrate on increasing crude oil production, improving asset reliability, managing costs and expanding gas development.
The company is targeting production of three million barrels of crude oil per day by 2030 as it continues its transition into a commercially driven energy company.
