NNPCL Eyes Global Competitiveness As Record Profit Validates Strong Fundamentals

Nigeria’s energy landscape has long been dominated by the Nigerian National Petroleum Company Limited, a behemoth whose operations span the entire oil and gas value chain, from exploration and production to refining, distribution, and gas infrastructure development.

Historically, NNPC’s financial performance mirrored the volatility of the global oil market and domestic inefficiencies, with years of losses followed by modest gains. Yet, in recent years, the company has emerged as a symbol of transformation, discipline, and strategic growth.

The 2024 audited financial statement reveals a Profit After Tax (PAT) of ₦5.4tn, a 64 per cent increase from 2023, alongside revenue of ₦45.1tn, marking a historic financial milestone for Nigeria’s national oil company.

This achievement reflects more than just operational success; it embodies a deliberate, strategic restructuring that has positioned NNPC Ltd for sustained growth, long-term investments, and global competitiveness.

Understanding the significance of the 2024 results requires a look back at NNPC Ltd’s recent financial trajectory. In 2018, the company recorded a loss of ₦803bn, followed by a loss of ₦1.7bn in 2019. The first profitable year came in 2020, with a PAT of ₦287bn, signalling the early stages of recovery. By 2021, profits had increased to ₦674.1bn. The upward trajectory accelerated sharply in 2022, reaching ₦2.548tn, the highest PAT at that time, followed by ₦3.297tn in 2023.

The ₦5.4tn profit in 2024 represents a significant leap, reflecting operational efficiency, rigorous cost management, and strategic deployment of resources. It also demonstrates that NNPC Ltd has transitioned from recovery to a period of structured and sustainable growth, setting the stage for even more ambitious national and international goals.

The remarkable growth of NNPC Ltd can be traced to three key areas. Operational efficiency and cost discipline have become central to the company’s strategy. Rigorous cost-optimisation measures are now embedded across upstream, midstream, and downstream operations. Every process, from exploration to refining, is scrutinised to minimise waste and maximise value for every naira spent. This focus has been pivotal in improving the bottom line while maintaining high-quality output.

Increased production and revenue assurance have also been crucial. The company has improved asset uptime and operational performance while tackling chronic challenges such as crude theft and pipeline vandalism. Through better security measures, community engagement, and technology-driven monitoring, higher crude volumes are now reaching export terminals, directly boosting revenue and profitability.

Downstream deregulation has further unlocked significant value. By enabling a market-reflective pricing structure for refined petroleum products, the company has reduced the financial burden of petrol subsidies. The downstream sector, once a drain on the company’s finances, now contributes positively to overall revenue, reinforcing the NNPC Ltd transformation into a commercially focused and efficiently run entity.

Part of NNPC Ltd’s current momentum can be traced back to the tenure of Mele Kyari, the former Group Chief Executive Officer. Kyari presided over a period of foundational transformation, establishing the structures and culture that now underpin the company’s success.

His leadership focused on asset optimisation, tackling pipeline vandalism, and combating crude theft, while promoting governance, transparency, and operational discipline.

Kyari also laid the groundwork for downstream reforms and strategic partnerships that unlocked the commercial potential of NNPC Ltd’s vast asset base. By emphasising operational discipline, technology adoption, and accountability, he created an environment where sustainable profitability became achievable.

Under his tenure, NNPC Ltd moved from mere ownership of assets to actively managing them for maximum value, setting the stage for the strategic investments seen today.

When Bashir Bayo Ojulari assumed the role of GCEO, he inherited a company that had already begun its turnaround journey. The heavy lifting of addressing inefficiencies, strengthening financial systems, and implementing transparent reporting frameworks had largely been completed.

Ojulari’s mandate was to build on this foundation, accelerate strategic investments, and translate operational gains into record profits and long-term growth.

Ojulari’s leadership focuses on expanding gas and renewable energy infrastructure, including projects such as the Ajaokuta-Kaduna-Kano (AKK) pipeline, the Obiafu-Obrikom-Oben (OB3) gas link, and the Escravos-Lagos Pipeline System (ELPS). These projects are not only diversifying revenue streams but also strengthening domestic energy supply and positioning NNPC Ltd as a globally competitive energy company.

Modernising the nation’s refineries is another priority. Refinery rehabilitation ensures a stable domestic fuel supply, reduces reliance on imports, and unlocks further commercial value from assets optimised under Kyari’s tenure. Profits are strategically reinvested into high-return projects, ensuring the sustainability of growth while expanding the company’s footprint in both upstream and downstream operations.

President Bola Tinubu’s directive to NNPC Ltd includes attracting $30bn in sectoral investments by 2027 and increasing crude oil production to two million barrels per day by the same year. Ojulari has embraced this directive as the company’s strategic compass, translating it into concrete actions.

Investment attraction has intensified through enhanced transparency, regular analyst engagement, and a robust pipeline of bankable projects. Production targets are being achieved through asset rejuvenation, operational efficiency, and strategic partnerships with international and indigenous oil companies.

Security collaborations and community engagement have further reduced downtime and improved reliability, ensuring that NNPC Ltd stays on course to meet national goals.

NNPC Ltd’s 2024 financials demonstrate that the company is effectively “sweating its assets.” Pipelines, refineries, and production fields are now active revenue-generating engines, contributing significantly to national economic growth.

Maximising uptime, commercial optimisation, and strategic partnerships ensures that every asset contributes to the bottom line. The N5.4tn profit provides tangible proof that NNPC Ltd’s assets are no longer dormant but are being leveraged to drive growth, investment, and energy security. This transformation reflects the combined efforts of Kyari’s foundational reforms and Ojulari’s strategic execution.

The momentum generated in 2024 provides a powerful launchpad for 2025 and beyond. Strategic projects such as the AKK and OB3 pipelines, alongside refinery upgrades, are designed to secure profitability, energy security, and industrial development for decades. Ojulari’s approach—building on Kyari’s achievements demonstrates the importance of continuity in leadership, disciplined execution, and a long-term investment mindset.

Expansion of gas infrastructure, renewable energy initiatives, and refinery modernisation will not only sustain revenue growth but also power Nigeria’s industrialisation, create millions of jobs, and attract billions of dollars in investment. The company’s ability to convert its vast asset base into productive, revenue-generating resources positions it as Africa’s leading energy company, with a trajectory toward global competitiveness.

NNPC Ltd’s success underscores the value of strategic continuity in leadership. Kyari established the operational, governance, and transparency foundations, while Ojulari is strategically leveraging these reforms to maximise profits, attract investment, and ensure sustainable growth.

This dual leadership continuum shows how institutional memory, visionary management, and disciplined execution can transform a complex, national institution into a commercially robust and globally competitive entity.

By embedding transparency, operational excellence, and long-term investment into its corporate DNA, NNPC Ltd is poised to remain a powerhouse in Africa’s energy sector.

NNPC Ltd’s N5.4tn profit in 2024 is more than just a financial milestone; it is the result of strategic foresight, disciplined execution, and continuity in leadership. The company’s transformation reflects the foundations laid and the investment-driven vision of Ojulari.

The journey of NNPC Ltd illustrates that when operational efficiency, transparency, and visionary leadership converge, even the most complex organisations can achieve remarkable results. This transformation is creating value for shareholders, driving national economic development, and positioning Nigeria as a leading energy hub on the African continent and globally.

The story of NNPC Ltd is not merely about profit—it is about strategic continuity, sustainable growth, and building an energy powerhouse for generations to come, highlighting how disciplined leadership and purposeful investment can shape the future of a nation.