NNPC cuts liabilities by N19.6trn as assets fall

The Nigerian National Petroleum Company Limited (NNPC Ltd) reduced its total liabilities by N19.58 trillion in 2025, even as its assets declined by N17.61 trillion during the year.

According to the company’s 2025 financial results, total liabilities fell by 37.1 per cent from N52.77 trillion in 2024 to N33.19 trillion in 2025.

Similarly, total assets declined by 10.8 per cent from N162.67 trillion in 2024 to N145.06 trillion.

The decline in assets came as NNPC’s revenue fell by 23.4 per cent from N45.08 trillion in 2024 to N34.52 trillion in 2025.

The company attributed the revenue decline principally to lower crude oil prices and reduced white-product volumes following the deregulation of the petroleum products market in 2024.

Crude oil remained NNPC’s largest revenue source, contributing N25.39 trillion in 2025, compared with N29.21 trillion the previous year.

Revenue from petroleum products, however, fell sharply by 77.6 per cent to N2.17 trillion from N9.68 trillion in 2024.

Natural gas revenue provided some relief, rising by 18.3 per cent to N6.15 trillion during the year.

Despite the decline in revenue, NNPC’s profit after tax rose by 33 per cent to N7.2 trillion from N5.4 trillion in 2024.

The company attributed the improved profit to enhanced operational efficiency and cost discipline.

Operating cash flow also increased by 16 per cent to N12.8 trillion, while earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 22 per cent to N18 trillion.

The financial results also showed that NNPC increased spending on its core assets and obligations.

Purchases of oil and gas properties rose to N6.46 trillion in 2025 from N5.62 trillion in 2024, while expenditure on other property, plant and equipment increased to about N3 trillion from N2.6 trillion.

The company also incurred substantial government-related obligations during the year, including group-level royalties of N11.56 trillion, compared with N2.83 trillion in 2024.

NNPC targets refinery competitiveness

Speaking on the results, NNPC Group Chief Executive Officer, Engr. Bayo Ojulari, said the company was determined to make its refineries commercially viable and technologically competitive.

Ojulari said NNPC had learnt lessons from previous approaches to refinery rehabilitation and was now looking beyond what he described as a “quick fix” that could leave the facilities technologically outdated within five to 10 years.

He said technical studies being undertaken with a Chinese company were examining how modern technology, monitoring systems and optimisation could be incorporated into the refineries.

According to him, the Chinese firm deployed 73 top engineers who spent three months assessing the Port Harcourt and Warri refineries, describing the commitment as an indication of its interest in the facilities.

“We have not signed a final agreement yet. We believe that once they officially finish the report of their study, they will then come back to us with the proposal,” he said.

Ojulari said NNPC would subsequently enter into commercial and technical negotiations with the company, adding that any final partnership would depend on an agreement between both parties.

“What we can say is that we see strong indications and commitment of their interest as of now in Port Harcourt and Warri refinery,” he said.

He said the Chinese company’s petrochemical facilities were operating at 120 per cent and, in some cases, 140 per cent of their design capacities after bottlenecks were optimised.

Ojulari said NNPC intended to apply similar lessons to ensure that Nigerian refineries could compete on quality, efficiency and profitability.

“We have to be looking forward, not just today,” he said.

On the Kaduna Refinery, the GCEO said technical assessment had yet to commence but expressed optimism that the process would begin under a similar technical equity partnership arrangement.