NNPC posts ₦5.4trn record profit, as Ojulari sets $60bn energy investment plan

The Nigerian National Petroleum Company Limited (NNPCL) has reported a record profit after tax of ₦5.4 trillion for 2024 on revenue of ₦45.1 trillion, marking one of the strongest annual performances since the state-owned energy company transitioned into a commercially driven entity under the Petroleum Industry Act.

The figures, which Bashir Bayo Ojulari, NNPC’s Group Chief Executive Officer (GCEO) announced during an earnings call with journalists on Monday in Abuja, reflect what he described as “a year of strong operational delivery,” with revenue jumping 88% and profit rising 64% from the previous year.

Earnings per share climbed 64% to ₦27.07, underscoring what management says is growing financial resilience in an increasingly complex operating environment.

“The earnings highlight the positive momentum of our ongoing transformation and the unwavering commitment of our workforce,” Ojulari said. “They offer a solid foundation for the ambitious growth ahead, in line with President Bola Ahmed Tinubu’s mandate, and reaffirm our commitment to delivering value to Nigerians.”

He said the company’s 2024 financial performance underscores the impact of improved operational efficiency, downstream market reforms, and strict cost discipline.

“The 2024 financial results we unveiled today are more than balance sheets and performance indicators. They embody discipline, progress, and the dedication of our teams nationwide,” Ojulari said, noting that these achievements reflect a broader effort to reduce waste and cut overall costs by 15 to 20 percent.

The company also declared a ₦4.3 trillion dividend. Total crude and natural gas production for the year reached 202.3 million barrels and 1,045.5 billion standard cubic feet, respectively, while its network included 1,096 retail outlets nationwide.

Flush with improved earnings, NNPCL outlined an aggressive multiyear growth strategy aimed at expanding crude output, strengthening gas supply, and accelerating investment in cleaner energy.

The company aims to close the year at about 1.7 million barrels per day (mbpd) in crude output and hopes to reach closer to 1.8 mbpd next year, with a longer-term target of 2mbpd by 2027 and 3 mbpd by 2030, levels Nigeria has struggled to reach in recent years due to persistent pipeline vandalism, theft, and underinvestment.

It also plans to lift natural gas production to 10 billion cubic feet per day by 2027 and 12 billion cubic feet per day by 2030, while pushing toward the completion of major pipeline projects including Ajaokuta-Kaduna-Kano (AKK), the Escravos-Lagos Pipeline System, and the Obiafu-Obrikom-Oben link—projects seen as critical to stabilising domestic supply and expanding regional exports.

The strategy depends heavily on capital mobilisation, which Ojulari says aims to attract $60 billion in investments across the upstream, midstream, and downstream segments before the end of the decade, a target that will test investor confidence amid global energy transition pressures and Nigeria’s fiscal constraints.

“Our transformation is anchored on transparency, innovation, and disciplined growth,” Ojulari told reporters. “We are positioning NNPC Limited as a globally competitive energy company capable of delivering sustainable returns while powering the future of Nigeria and Africa.”

NNPC, founded in 1977, is attempting to shed its decades-long reputation for opacity following its 2022 conversion into a limited liability company.

While the latest results are likely to reassure policymakers eager for improved oil revenues, the company’s ability to meet its production and investment goals will hinge on regulatory stability, security across crude corridors, and its capacity to deliver long-delayed infrastructure that underpins the country’s energy ambitions.

“We will have a better financial year in 2025 compared to 2024 on the basis of our fundamental performance, excluding the effect of foreign exchange gains,” the GCEO assured.

He stressed that operational efficiency and productivity improvements are critical to sustaining profitability and achieving future growth. “If we are very efficient, improve our efficiency, and improve our productivity, then I think the fundamentals are in the right direction for us to sustain that profitability. In fact, to grow it, fundamentally,” he said.

Meanwhile, NNPCL plans to partner with private sector operators to rebuild and modernise its four refineries—located in Port Harcourt, Warri and Kaduna—with the aim to produce higher-quality fuels and improve operational efficiency.

Ojulari said the company will engage private entities with proven refinery operations and technical expertise, with the private partners taking the lead in day-to-day operations. “Our intention is to partner with them as a business. Remember, we are not partnering as government. We are partnering as a commercial company,” he said at the press conference.

“It’s very different. It’s a commercial agreement where they bring in technical capacity, technical resources, and all of that, and we complement with the capability that we have, and we cooperate with them. But they lead the operation because we want people who are there in the beginning.”

The partnerships required for the refinery upgrades are expected to be finalised by mid-2026, the GCEO disclosed, assuring that “rigorous solutions” were already underway. “By the middle of next year, we will have agreed and defined the partnerships, the technical partnerships, the new relationship, and the new contracts. Everything will be in place. So, I will have a clear roadmap towards the completion of those plans,” Ojulari said.

He emphasised that the refineries – with a combined installed capacity of about 445,000 barrels per day (bpd)—require redesigns to meet international standards, producing “high-grade” fuels suitable for commercial marketing.

“Let me tell you what most people may not be aware of. If we go by the original plan, let’s just assume we just go ahead; by the time we finish the ongoing rehabilitation, the products from those refineries will be far lower standard than the specifications.

“So, when you hear me use the word ‘high grade,’ it’s like we want to redesign to high grade so that the product will be of international standard, and we can commercially market it,” he said.

Ojulari highlighted the erosion of domestic technical expertise over the years, pointing to the Dangote refinery as an example of the level of capability being considered for NNPC partnerships.

“If you look at the Dangote refinery today and look at the capabilities of the people running it, a lot of foreign people are there. We may not like it, but we need to review that capability because we’ve lost the capability over time in terms of overall capacity to run,” he said.

He also emphasised that the company, now a limited liability entity, will balance commercial freedom with government oversight as it pursues high-grade, internationally marketable products.