The Nigerian National Petroleum Company Limited (NNPC Ltd) reported a significant financial setback in September 2025, with a revenue decline of approximately N380 billion compared to August, according to its latest monthly performance report. The state-owned oil company’s total revenue fell from N4.65 trillion in August to N4.27 trillion in September, reflecting a notable month-on-month loss.
The report also highlighted a sharp drop in profit after tax, which plummeted from N539 billion in August to N216 billion in September. This downturn was attributed to reduced crude oil and gas production, driven by operational challenges.
**Production Declines Across Key Metrics**
NNPC’s September data revealed a slight decrease in crude oil and condensate production, averaging 1.61 million barrels per day (mbpd), down from 1.65 mbpd in August. Specifically, crude oil output dipped from 1.39 mbpd to 1.37 mbpd, while condensate production fell from 0.26 mbpd to 0.24 mbpd. Natural gas production also saw a decline, dropping from 6,949 million standard cubic feet per day (mmscf/d) in August to 6,284 mmscf/d in September. Gas sales followed a similar trend, decreasing from 4,201 mmscf/d to 3,443 mmscf/d.
The company cited planned maintenance activities, including those at the Nigeria Liquefied Natural Gas (NLNG) facility, as a primary cause of the production shortfall. Additional factors included delays in restarting operations at Oil Mining Leases (OMLs) 71 and 72, as well as the gradual recovery of previously shut-in assets.
**Progress on Gas Infrastructure Projects**
Despite the production challenges, NNPC reported advancements in key gas infrastructure projects. The Ajaokuta-Kaduna-Kano (AKK) gas pipeline project reached 88% completion by September, with ongoing efforts to finalize the mainline works. Similarly, the Obiafu-Obrikom-Oben (OB3) gas pipeline saw progress, with a 113 km section commissioned and currently delivering approximately 300 mmscf/d of gas from producers such as AHL, Platform, Chorus, and Xenergi. NNPC also noted that a revised execution strategy is being implemented to ensure the OB3 pipeline meets its target completion timeline.
**Social Initiatives and Statutory Payments**
NNPC’s statutory payments from January to August 2025 totaled N10.07 trillion, unchanged from the previous month. The company’s retail station wetness, an indicator of petrol availability, slightly declined from 79% in August to 77% in September.
On the social impact front, the NNPC Foundation continued its outreach efforts. In September, it launched training programs for vulnerable farmers in the Northern Zones, with 2,141 farmers trained in the North-Central Geopolitical Zone, bringing the total number of trained smallholder farmers to 7,072. In collaboration with the Nigerian Cardiac Society, the foundation provided life-saving cardiac interventions to 25 indigent Nigerians and offered basic life support training. Additionally, the foundation supported youth entrepreneurship in the creative industry by sponsoring youth corps members and undergraduates at the Africa Film Finance Forum.
**External Factors Impacting Performance**
NNPC’s Group Chief Executive Officer, Bayo Ojulari, noted that a two-day strike by oil workers’ unions, stemming from disputes with the Dangote Refinery, contributed to the production disruptions in September. The combined impact of these operational and external challenges led to the weakened financial performance for the month.
While NNPC continues to make strides in infrastructure development and social initiatives, the September figures underscore the need to address production bottlenecks to stabilize revenue and profitability in the coming months.
