•Profit declines by N323bn m-o-m  

•Production constraints persist despite fiscal gains

Emmanuel Addeh in Abuja

The Nigerian National Petroleum Company Limited (NNPC) remitted N10.073 trillion to the Federation Account between January and August 2025, according to the company’s September 2025 monthly performance report released yesterday.

The cumulative figure represents statutory payments from oil and gas operations over the first eight months of the year, with the national oil company recording N4.26 trillion revenue in August alone.

The remitted funds include proceeds from crude and condensate sales, gas sales, royalties, taxes, and other payments due to the Federation. The remittance in August was an increase of about N1.21 trillion compared to July.

This is against the company’s cumulative remittance of N8.86 trillion to the Federation Account between January and July 2025, underscoring its growing role as the country’s fiscal anchor despite persistent industry challenges.

While the company also declared a profit after tax of N539 billion for the previous month in August, backed by steady crude oil and gas output, stronger product availability, and improved operational efficiency across its facilities, however this declined in September to N216 billion. This constituted about N323 billion reduction in profit.

But the September profit was an increase compared to the N185 billion declared in July; but a slump from the N905 billion declared for its June operations and  a further drop from the N1.054 trillion recorded in the previous month of May.

Besides, Nigeria’s crude oil and condensate production averaged 1.61 million bpd in September as against 1.65 million barrels per day in August, which further represented a 2.9 per cent dip from July’s 1.70 million bpd production.

Crude oil and condensate production averaged around 1.56 to 1.69 million barrels per day during the period, including condensates. Although below the nation’s technical capacity, the level was sufficient to support a reasonable inflow into government accounts.

The report attributed temporary output moderation to planned maintenance activities at key facilities, including the Nigeria LNG plant, and delays in the recommencement of operations at certain oil mining leases.

On gas, average daily production stood at about 6.28 billion standard cubic feet per day in September, while a significant portion of this was commercialised through domestic and export channels, contributing to the overall revenue performance.

Despite the fiscal operations outcome, operational challenges persisted across parts of the production and supply chain. Maintenance shutdowns at producing terminals and pipeline constraints continued to limit crude evacuation.

But the report noted gradual recovery of previously shut-in volumes and ongoing work on critical infrastructure such as the Obiafu-Obrikom-Oben (OB3) gas pipeline. Once completed, the OB3 line is expected to enhance gas transportation and support industrial supply growth. It reported that OB3 is now at 96 per cent completion.

In the same vein, the Ajaokuta-Kaduna-Kano (AKK) gas pipeline is now at 88 per cent completion, while upstream pipeline availability was 96 per cent during the month under consideration. NNPC Retail maintained a significant level of fuel supply across the country during the review month, with most of its filling stations having products at 77 per cent.

Beyond its operational metrics, the report also highlighted several public-impact activities executed through the NNPC Foundation. These included training programmes for more than 7,000 smallholder farmers in the northern region, free cardiac interventions for indigent patients, and participation in creative-industry development initiatives. Although not directly linked to core operations, these interventions formed part of the company’s social-investment commitments.

The report further indicated that all production, sales, and financial figures are provisional, pending reconciliation with relevant stakeholders. Nonetheless, the trend suggests that NNPC could exceed its 2024 remittance record if current conditions persist through the final quarter of the year.