The Nigerian National Petroleum Company Limited has reported a Profit After Tax of N5.4tn for the 2024 financial year, marking one of its strongest outcomes since becoming a limited liability company.
The Group Chief Executive Officer of NNPCL, Bayo Ojulari, revealed the figures at a press conference in Abuja on Monday. The new results reflect a major leap from the N3.297tn posted in 2023.
The 2024 profit represents a 64 per cent increase compared to the previous year, driven by higher production output, tighter cost management, and better operational performance across the company’s various business units.
According to The PUNCH, the latest results extend the company’s profitability run that began in 2020 when NNPC posted its first ever profit of N287bn. This later rose to N674bn in 2021 and N2.5tn in 2022.
While presenting the financials, Ojulari stated that the national oil company also generated N45.1tn in revenue, an 88 per cent year-on-year rise. He explained that the improved stability in the foreign exchange market following the CBN’s decision to float the naira played an important role in boosting the company’s performance.
However, a review of NNPCL’s foreign exchange income showed a significant decline in 2024, falling to N8.365bn from N15.95bn in 2023, amounting to a 47.6 per cent drop, based on the published statement.
According to the GCEO, the results reflect the “positive momentum” of the company’s ongoing reform efforts, which are largely influenced by strict operational discipline and ongoing market changes.
Ojulari explained that the increase in earnings was supported by cost control, better production levels, and favourable conditions across the upstream, midstream, and downstream sectors.
He added that the breakdown of the results showed N45.1tn in revenue, N5.4tn in Profit After Tax, and N27.07 in earnings per share, each rising by 64 per cent.
Ojulari said, “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. Yet, we recognise that figures alone cannot speak. They require context, clarity, and accessible interpretation, and that is where you play a vital role.
“To provide that context, let me underscore what these results signify. In 2024, NNPC Limited achieved a Profit After Tax of N5.4tn, supported by N45.1tn in revenue.
“This outcome was propelled by several critical drivers: enhanced operational efficiency across our assets, the positive impact of downstream market reforms, and our unwavering commitment to cost discipline. Financially, we have never been stronger or better positioned for tomorrow.”
He also unveiled a long term strategic plan aimed at maintaining growth and supporting Nigeria’s energy transition through 2030. This blueprint focuses on expanding oil and gas output and attracting large scale investments across the petroleum value chain.
As part of the new targets, NNPC Ltd intends to increase crude oil production to two million barrels per day by 2027 and three million barrels per day by 2030.
The GCEO also disclosed plans to grow natural gas production to 10 billion standard cubic feet per day by 2027 and 12 billion scf per day by 2030, while completing major infrastructure including the Ajaokuta Kaduna Kano pipeline, the Escravos Lagos Pipeline System, and the Obiafu Obrikom Oben pipeline.
The company is also working towards drawing in up to 60 billion dollars in investments across the oil and gas sector by 2030.
“NNPC Limited is accelerating investments across upstream operations, gas infrastructure, and clean energy to extend growth into the next decade. Key strategic targets include mobilising 60 billion dollars in investments across the upstream, midstream, and downstream sectors by 2030.
“Our transformation is anchored on transparency, innovation, and disciplined growth,” Ojulari added. “We are positioning NNPC Limited as a globally competitive energy company capable of delivering sustainable returns while powering the future of Nigeria and Africa.”