The Nigerian National Petroleum Company Limited (NNPC Ltd.) has reported a sharp fall in profit after tax, dropping from ₦905bn in June to ₦185bn in July 2025 a staggering 79.6% decline.

The state-owned oil giant disclosed the figures in its monthly financial and operational report released late on Thursday. According to the document, revenue also slipped slightly, from ₦4.57tn in June to ₦4.41tn in July.

The latest report shows a continued downward trend in profitability. In April, NNPC posted a profit of ₦926bn, which rose to ₦1.05tn in May, before sliding back to ₦905bn in June. July’s ₦185bn figure, however, represents the steepest decline so far this year.

Interestingly, the profit slump comes despite a marginal increase in crude oil production, which rose from 1.68 million barrels per day (mbpd) in June to 1.7 mbpd in July. Natural gas output also climbed to 7.7 billion cubic feet, up from 7.58 bcf in the previous month.

NNPC said statutory payments for the period January to June stood at ₦7.97tn.

Gas Infrastructure Projects Near Completion

The report highlighted significant progress on the company’s flagship gas infrastructure projects. The Ajaokuta–Kaduna–Kano (AKK) pipeline has reached 96% completion, while the Obiafu–Obrikom–Oben (OB3) pipeline is 83% complete.

On the AKK project, the company noted that additional subcontractors had been deployed to fast-track mainline works. For the OB3 pipeline, it announced the implementation of a revised execution strategy to expedite completion of the crucial River Niger crossing.

Already, the commissioned 113-kilometre section of the OB3 pipeline is transporting about 300 million standard cubic feet per day (mmscf/d) of gas, supplied by producers including AHL (250 mmscf/d), Platform, Chorus, and Xenergi (50 mmscf/d).

Strategic Focus

NNPC said it remains focused on sustaining crude oil and condensate production, improving facility uptime, and enhancing collaboration with stakeholders to drive operational efficiency.

Despite these measures, the July results reflect the volatility of the global oil market and underscore the challenges facing Nigeria’s energy sector, particularly in balancing production growth with profitability.