The Nigerian National Petroleum Company (NNPC) Limited has solidified its role as a critical revenue pillar for the government, announcing the remittance of a colossal N12.117 trillion to the Federation Account between January and October 2025.
Strong Financial Performance Amid Challenges
According to its November performance report, the state-owned energy giant also recorded robust financial results for the period. The company's group revenue stood at N4.358 trillion, while its profit after tax rose to N502 billion.
The NNPC attributed this positive outcome to stronger commercial performance and improved cost management strategies. This financial resilience comes despite persistent operational hurdles within the country's upstream oil sector.
Steady Oil Production and Pipeline Integrity
The report provided updates on the nation's crude oil and condensate output, noting production remained broadly steady towards the end of the year. In November 2025, average production reached 1.6 million barrels per day (mbpd), a slight increase from the 1.58 mbpd recorded in October.
This figure comprised 1.36 mbpd of crude oil and 0.24 mbpd of condensates. However, production remained below the year's peak of 1.77 mbpd achieved earlier in 2025.
NNPC explained that modest fluctuations were due to planned maintenance activities at key assets, including Esso-Erha, Stardeep-Agbami, and fields within the Renaissance-Estuary Area. The company anticipated a full recovery by the end of December 2025 as facilities returned to service.
In a significant development for sector efficiency, the company reported 100% upstream pipeline availability during the period. This ensured uninterrupted evacuation of produced volumes, helping to reduce the substantial losses historically associated with pipeline downtime.
Gas Infrastructure Projects Near Completion
Substantial progress was reported on major gas pipeline projects central to Nigeria's gas expansion ambitions. The Ajaokuta–Kaduna–Kano (AKK) gas pipeline is now approximately 90% complete.
Mainline welding has been finished and pressure testing successfully carried out. NNPC confirmed the project remains on track for full completion in 2026 and is expected to significantly boost gas supply to industrial and power sectors in northern Nigeria.
Similarly, the Obiafu–Obrikom–Oben (OB3) gas pipeline has advanced to 96% completion. Work is currently concentrated on the critical River Niger crossing, where geotechnical studies are concluded and preparatory construction has begun.
This pipeline is designed to enhance gas supply to both domestic users and export markets. The near-completion of these pipelines is deemed critical for supporting and expanding the utilisation of Nigeria's current gas production, which stands at about 6,968 million standard cubic feet per day.
The NNPC's performance and remittances provide a fiscal buffer for the federal government amid ongoing economic reforms and global energy market volatility. The company's transition into a commercially driven entity continues, marked by its recent launch of a bidding process to sell stakes in selected oil and gas assets to attract investment and enhance operational efficiency.
