NNPCL Posts ₦502bn November Profit Despite Decline in Crude Production

The Nigerian National Petroleum Company Limited has reported a profit of ₦502 billion for November, even as the country’s crude oil production declined during the period. The performance highlights the company’s improved financial position following ongoing reforms in the oil and gas sector, despite operational challenges affecting upstream output.

According to the national oil company, the profit was recorded in November operations, reflecting stronger revenue management, improved trading margins and increased efficiency across its business units. The result underscores NNPCL’s transition into a commercially driven entity under the Petroleum Industry Act, which mandates transparency and profitability.

Crude oil production during the month fell below earlier levels, largely due to operational disruptions, maintenance activities and persistent challenges such as pipeline vandalism and crude theft. Despite these setbacks, NNPCL said it was able to sustain profitability through improved crude marketing, gas sales and downstream operations.

The company’s financial performance was supported by higher realised prices for crude oil and refined products, as well as improved operational discipline. NNPCL noted that better cost control measures and reduced cash call obligations also contributed to the positive outcome.

Gas operations played a significant role in supporting earnings during the period. NNPCL disclosed that gas production and sales remained relatively stable in November, benefiting from sustained domestic demand and export commitments. Gas revenue has increasingly become a key pillar of the company’s earnings, particularly as Nigeria pushes its gas commercialisation and energy transition agenda.

Downstream operations also contributed to the profit, with improved trading and supply management helping to stabilise product availability. Although the removal of petrol subsidy altered market dynamics, NNPCL said its trading activities remained commercially viable, allowing it to manage costs and revenues more effectively.

The reported profit comes at a time when Nigeria continues to grapple with lower-than-expected crude output. Industry data show that production levels have been affected by technical issues, ageing infrastructure and security concerns in oil-producing regions. While efforts to curb oil theft have yielded some improvements, output remains below Nigeria’s installed capacity.

Analysts note that NNPCL’s ability to record a substantial profit despite lower output reflects improved financial governance and diversification of revenue streams. By relying less solely on crude oil volumes and more on value optimisation, the company appears to be adjusting to a more market-driven environment.

NNPCL said the November profit was achieved without recourse to government subventions, reinforcing its position as a self-sustaining commercial entity. The company added that this marks a departure from past practices where profitability was undermined by subsidies and opaque financial arrangements.

The company’s financial disclosures form part of its monthly operational and financial reports, which were introduced to enhance transparency and accountability. Stakeholders have welcomed the regular publication of performance data, describing it as a positive step towards rebuilding trust in the national oil company.

However, some analysts have cautioned that sustained profitability will depend on addressing structural challenges in the upstream sector. While improved trading and gas revenues can cushion short-term shocks, long-term performance still hinges on boosting crude production and securing infrastructure.

NNPCL acknowledged these challenges and said it is working with security agencies and host communities to protect critical oil and gas assets. The company also noted ongoing investments in pipeline surveillance and infrastructure rehabilitation aimed at reducing losses and improving production efficiency.

The profit figure has renewed debate over the role of the national oil company in Nigeria’s fiscal framework. With the removal of petrol subsidy and NNPCL’s commercialisation, expectations are rising that the company will make more consistent contributions to national revenue.

Economists say improved profitability at NNPCL could help ease pressure on public finances, especially as the government seeks to expand non-oil revenue sources. Dividends from the company, if sustained, could provide an additional revenue stream for the federation.

Despite the positive financial result, concerns remain about the sustainability of crude output levels. Industry experts argue that significant investment is needed to reverse production declines, particularly in mature oil fields. They also stress the importance of regulatory stability and investor confidence in attracting new capital.

The November profit has also drawn attention to the broader impact of oil sector reforms. The Petroleum Industry Act, which restructured NNPC into a limited liability company, is seen as a key driver of improved transparency and commercial focus. Analysts believe the reforms are beginning to yield tangible results, although full benefits may take time to materialise.

NNPCL said it remains committed to improving operational efficiency and expanding its gas and renewable energy portfolio. The company emphasised that diversification is central to its long-term strategy, especially in the context of global energy transition and declining reliance on fossil fuels.

The national oil company also highlighted its role in supporting domestic energy security, noting that stable operations in gas and downstream segments are critical to economic stability. NNPCL said it will continue to balance commercial objectives with its strategic responsibilities.

As Nigeria navigates a challenging economic environment marked by foreign exchange pressures and fiscal constraints, NNPCL’s reported ₦502 billion profit in November offers a measure of optimism. However, analysts caution that consistent performance will require sustained reforms, improved security and increased investment across the oil and gas value chain.

The company expressed confidence that ongoing operational improvements and policy support will strengthen its financial position in the coming months. NNPCL said it is focused on building a resilient, transparent and profitable national oil company capable of delivering value to Nigerians despite fluctuating production levels.