By John Umeh
Nigeria’s state-owned energy giant, NNPC Limited, has delivered another strong financial performance, posting a ₦502 billion profit after tax in November 2025, even as crude oil production remained below earlier-year highs.
The impressive earnings came at a time of mounting pressure in the downstream sector, with NNPC slashing the pump price of petrol below ₦800 per litre in response to fierce competition and shifting market dynamics.
Gas Strength Powers Earnings
According to the company’s November 2025 Financial and Operations Report, NNPC generated ₦4.36 trillion in revenue during the month, slightly higher than October’s figures. The performance was driven largely by robust gas operations, improved infrastructure reliability, and strong trading activities, which cushioned the impact of weaker crude oil output.
Crude oil and condensate production averaged 1.36 million barrels per day, up modestly from October’s 1.30mbpd but significantly below the 1.77mbpd peak recorded earlier in the year. The November rebound followed three straight months of decline and was supported by partial recovery at disrupted assets.
Gas production, however, remained steady at 6,968 million standard cubic feet per day, reaffirming gas as the backbone of NNPC’s operational stability in 2025.
Profit Momentum Builds
NNPC said the November result extended its strong earnings run in the second half of the year, reflecting tighter cost controls and the benefits of its post-commercialisation structure. Between January and October 2025, the company paid ₦12.12 trillion into the Federation Account, reinforcing its growing importance to government revenue amid fiscal strain.
Despite the improved figures, the company acknowledged ongoing production challenges linked to pipeline repairs, force majeure at key assets, and delays in new project start-ups.
Fuel Price War Reshapes the Market
On the retail front, NNPC moved decisively to protect market share as Nigeria’s downstream sector became increasingly competitive. Petrol prices at NNPC stations were cut below ₦800 per litre after motorists gravitated toward cheaper alternatives offered by private marketers.
The pricing shake-up was triggered by the Dangote Refinery, which lowered its ex-depot petrol price to ₦699 per litre, forcing retailers nationwide to revise prices downward. With imported fuel landing at about ₦828 per litre, NNPC and other importers were compelled to absorb losses to remain competitive.
By midweek, several NNPC outlets along key corridors such as the Lagos–Ibadan Expressway were selling petrol for as low as ₦785 per litre, narrowing the gap with rival stations.
A Fully Deregulated Reality
Industry players say the developments mark a turning point in Nigeria’s fuel market, where price—not brand—now determines patronage. Independent marketers warned that retailers unwilling to adjust prices risked losing customers as interest costs and storage charges mount.
NNPC’s management described the price competition as a natural outcome of full deregulation under the Petroleum Industry Act, noting that the company no longer controls fuel pricing and must operate like any other market participant.
Gas Push and Infrastructure Progress
Beyond retail pricing, NNPC continued to advance its long-term gas strategy. Key pipeline projects, including the Ajaokuta–Kaduna–Kano gas corridor, recorded major construction milestones and remain on course for completion in 2026.
The company also reported full upstream pipeline availability in November and stable fuel supply across most states, easing concerns of shortages during the festive season.
