NNPC Revenue Plummets by N165bn: What’s Behind the Sharp Decline?


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NNPC revenue drops by N165bn

NNPC Reports Significant Revenue Decline in July 2025

The Nigerian National Petroleum Company Limited (NNPC Ltd) has announced a notable decrease in its revenue for July 2025, with nnpc-profit-falls-185bn-july/” title=”… Profit Takes Another Hit, Plummeting to N185 Billion in July”>earnings falling by N165 billion compared to the previous month.

Financial Performance Overview

According to the NNPC’s Monthly Report Summary for July 2025, total revenue dropped from N4.571 trillion in June to N4.406 trillion in July, marking a 3.59% reduction. More strikingly, the company’s Profit After Tax (PAT) plunged by 79.56%, falling from N905 billion in June to just N185 billion in July. This sharp decline is attributed primarily to increased costs of sales and adjustments related to income tax.

Production Metrics and Operational Highlights

In terms of output, the state-owned oil giant maintained an average crude oil and condensate production of 1.7 million barrels per day (bpd) throughout July. Natural gas production stood at 7.72 million standard cubic feet per day (mscfd), reflecting steady performance despite the revenue challenges.

Strategic Initiatives to Boost Efficiency

NNPC emphasized its ongoing commitment to sustaining crude oil and condensate production levels, enhancing the operational uptime of its production facilities, and fostering stronger collaboration with stakeholders to improve overall efficiency.

Accelerating Key Pipeline Projects

Efforts to expedite critical infrastructure projects are underway. The Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline project has seen the deployment of additional subcontractors aimed at fast-tracking the completion of mainline construction. This move is expected to accelerate the pipeline’s operational readiness.

Additionally, the company has initiated a revised execution plan to hasten the completion of the Obiafu-Obrikom-Oben (OB3) River Niger crossing. Notably, a 113-kilometer segment of the OB3 Gas Pipeline has already been commissioned, currently transporting approximately 300 million standard cubic feet per day (mmscf/d) of gas sourced from two producers.

Looking Ahead

Despite the recent financial setbacks, NNPC’s focus on infrastructure development and operational efficiency signals a strategic approach to stabilizing and potentially increasing production and revenue in the coming months. Industry analysts note that with Nigeria’s vast untapped oil and gas reserves, such initiatives are critical to reversing the current downward trend.

By Babajide Okeowo

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