The Nigerian National Petroleum Company Limited has reported a sharp drop in profit after tax, falling from ₦905 billion in June to ₦185 billion in July 2025, representing a 79.6 percent decline.
According to The PUNCH, figures from the company’s monthly performance report released on Thursday evening showed that revenue for July stood at ₦4.41 trillion, down from ₦4.57 trillion recorded the previous month.
Despite the revenue slide, crude oil production inched up marginally from 1.68 million barrels per day (mbpd) in June to 1.7 mbpd in July. Natural gas output also rose slightly to 7.7 billion cubic feet, compared to 7.58 bcf the previous month.
Industry analysts say the drastic fall in profit may be tied to rising operational costs and statutory obligations.
“This kind of sharp drop is unusual, especially when production numbers are improving,” said an energy analyst, Tunde Adebayo. “It suggests that higher costs, subsidies, or other fiscal obligations may have eaten deep into the company’s bottom line.”
The report further highlighted progress in ongoing infrastructure projects. The Ajaokuta-Kaduna-Kano (AKK) gas pipeline is now 96 percent complete, while the Obiafu-Obrikom-Oben (OB3) pipeline has reached 83 percent completion. The company noted that new subcontractors have been mobilized to fast-track the mainline works on the AKK project, while a revised execution strategy has been adopted for the OB3 River Niger Crossing.
On gas distribution, the NNPCL disclosed that 113 km of the OB3 pipeline has been commissioned, currently delivering about 300 million standard cubic feet per day (mmscf/d) from producers such as AHL, Platform, Chorus, and Xenergi.
Reaffirming its commitment, the company said in the report: “We remain focused on sustaining crude oil and condensate production, improving the uptime of our production facilities, and strengthening collaboration with stakeholders to drive operational efficiency.”