NNPC Reports Sharp Decline in Profit After Tax Amid Rising Expenses
- NNPC reported a 79.6% drop in profit after tax, from ₦905 billion in June to ₦185 billion in July 2025,
- Despite this, production of crude oil and condensate slightly increased, and gas sales also saw growth.
- It also advanced infrastructure projects, including gas pipeline developments, and continued its social investment initiatives
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
The Nigerian National Petroleum Corporation's (NNPC) most recent monthly financial and operational report has shown that the corporation's profit after tax (PAT) dropped sharply by 79.6%, from ₦905 billion in June to ₦185 billion in July 2025.
Source: Getty Images
According to the state-owned oil corporation, the decline was mainly caused by changes in the cost of sales and income tax adjustments, which countered solid output and consistent revenues.
Compared with ₦4.57 trillion in July, groupwide income decreased slightly to ₦4.41 trillion.
“All production, sales, and financial figures are provisional and subject to reconciliation with relevant stakeholders,” NNPC noted.
Production of crude oil and condensate increased marginally from 1.68 million barrels per day (bpd) in June to 1.70 million bpd. Additionally, natural gas production grew, rising from 7,581 million standard cubic feet per day (mmscf/d) to 7,722 mmscf/d.
Crude oil and condensate sales increased to 25.49 million barrels from 21.68 million barrels, while gas sales, as reported on a Schedule M-2 basis, increased to 4,978 mmscf/d from 4,742 mmscf/d in June.
According to Fondo, an accounting platform for start-ups, Schedule M-2 charts a corporation's unappropriated retained earnings, connecting beginning balances to end-of-year retained earnings and providing a snapshot of current-year income, pre-tax earnings, and expenses.
The ₦7.97 trillion in statutory payments to the Federation between January and June highlights NNPC's position as the nation's main source of income.
Regarding infrastructure, the corporation announced further developments on two key gas pipelines. A new execution plan has been introduced for the Obiafu–Obrikom–Oben (OB3) line’s Niger River crossing, and more subcontractors have been brought in to expedite mainline construction on the Ajaokuta–Kaduna–Kano (AKK) Gas Pipeline.
“A 113-km stretch of the OB3 pipeline has been commissioned and is now delivering 300 mmscf/d of gas from producers, including AHL (250 mmscf/d), Platform, Chorus, and Xenergi (50 mmscf/d),” the report stated.
Source: Getty Images
In July, NNPC Retail Limited reported that 70% of its service stations had fuel available, which was slightly less than the 71% recorded in June, BusinessDay reported.
The NNPC Foundation, the corporation's social investment arm, also advanced its projects by starting a tree-planting program with 200,000 seedlings in Katsina State and contributing 35 compressed natural gas (CNG) buses to the Presidential Initiative on CNG (Pi-CNG).
Notwithstanding these operational improvements, the steep drop in profit highlights the difficulties NNPC is facing due to tax liabilities and growing expenses. The corporation reaffirmed that the July numbers are still preliminary and subject to revision in consultation with stakeholders.
EFCC places ex-NNPC boss Mele Kyari on watch list
Legit.ng reported that A former Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, has been placed on the watchlist of the Economic and Financial Crimes Commission (EFCC).
Kyari was placed on the EFCC watchlist over the ongoing probe into the $7.2 billion refineries’ turnaround maintenance.
As reported by Daily Trust, this is coming after the Federal High Court sitting in Abuja on Tuesday, August 19, ordered a temporary freezing of four bank accounts linked to Kyari over allegations of fraud.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
