Foreign Exchange Gains Boost National Petroleum Company’s Profit To N5.4trn

The Nigerian National Petroleum Company Limited (NNPCL) has reported a 64 per cent leap in its after-tax profit to N5.4 trillion for the 2024 financial year, from the N3.3 trillion recorded in 2023.

The group chief executive officer of NNPCL, Engr. Bashir Bayo Ojulari, who made this known in Abuja on Monday, attributed this surge to the positive impact of the foreign exchange gains following the Naira float, improved operational efficiency, downstream market reforms, and rigorous cost discipline, signalling stronger financial health and readiness for future growth.

He said the profit soared from the N3.3 trillion recorded in 2023.

Additionally, Ojulari revealed that revenue rose to N45.1 trillion from the N23.9 trillion recorded in 2023.
In the 2024 report, while dividends were N4.3 trillion, earnings per share were N27.07.

“In 2024, NNPC Limited achieved a profit after tax of N5.4 trillion, supported by N45.1 trillion in revenue,” he said.

During the period under review, NNPCL operated 1,096 retail outlets nationwide, produced 202.3 million barrels per day (mb/d), and 1.04 billion standard cubic feet (bscf) of natural gas.

The NNPCL boss attributed the financial growth to the floating of the Naira in the period under review.
Ojulari said, “This outcome was propelled by several critical drivers: enhanced operational efficiency across our assets, the positive impact of downstream market reforms, and our unwavering commitment to cost discipline.

“Financially, we have never been stronger or better positioned for tomorrow. Strategically, this financial capacity powers our ambitious national initiatives.”

The financial feat, according to him, will be sustainable, especially when gas production is increased as a result of the gas sales and supply agreements the company has signed with third parties. He noted that the company is also exploring the expansion of Compressed Natural Gas to generate additional revenue.

He added that the results reflected the company’s ongoing transformation and commitment to delivering value to Nigerians in line with President Bola Tinubu’s mandate.

Ojulari outlined key strategic priorities, including increasing crude oil production to 2 million barrels per day (bpd) by 2027 and 3 million bpd by 2030, growing natural gas production to 10 bcf/d by 2027 and 12 bcf/d by 2030, completing major gas infrastructure projects such as the Ajaokuta-Kaduna-Kano (AKK), Escravos-Lagos Pipeline System (ELPS), and Obiafu-Obrikom-Oben (OB3) pipelines and mobilising $60 billion in investments across upstream, midstream, and downstream sectors by 2030.

On the future of NNPC refineries, Ojulari stated that the company was reviewing partnership options with private entities to complement its technical capacity and resources. A final decision is expected by mid-2026.

“Our transformation is anchored on transparency, innovation, and disciplined growth,” he said. “We aim to position NNPC as a globally competitive energy company capable of delivering sustainable returns while powering Nigeria and Africa’s future.”

The NNPCL boss revealed that the state-owned oil company is reviewing the technical and financial viability of the national refineries to determine a sustainable solution that can make the plants profitable.

He said, “We are reviewing all the technical and commercial viability of our refineries…

All of us know the story. The question is, what is different this time? What is different this time is that we’re taking the time to do a rigorous review of the refineries to ensure that whatever solution we bring forward is a solution that is sustainable. Whatever solution we put forward is a solution that the refinery is profitable.”

The essence of the review, according to him, is to engage third-party partners reputable for refinery operations

“Now, that is a switch that requires rigorous engineering, rigorous commercial construct, and ensuring that the parties that we bring on board are people who have a reputation in operating refineries before, not just anybody on the streets,” he said.

Ojulari noted that NNPCL is being careful not to take any regrettable decisions as it cannot afford to make another mistake at this stage.

Asked to provide a timeline for the refinery operations, he said it is premature to disclose a timeline, stressing that by the middle of next year, NNPCL would have defined a new contract and would have a clear roadmap for a timetable.

According to him, NNPCL will eventually engage with the management of a company that has the capital and capability, as it aims to redesign and develop higher-grade products.

Ojulari was optimistic that the mandate of attracting $30 billion in investment and raising crude oil production to 2 million barrels per day in 2026 was realisable. He added that 2025 might close with an output of 1.7 million barrels per day.

He disclosed that Final Investment Decisions are expected to be announced in the industry by the end of 2025.

Ojulari said, “I think the investment from what we see in terms of investment decisions and investment, I believe in our view, is realisable.

“We are pushing towards that direction on the investment side of things. We are looking at FIDs coming up at the end of this year, mostly in our gas business.

We are also examining some FIDs in the Austrian region, as well as in the Green India border area. If those FIDs materialise based on the work we’re doing, our partners, remember we also have investors, investor partners as well, we can see a line of sight.”