The Nigerian National Petroleum Company Limited (NNPC) has reported an eye-popping revenue of N20.9 trillion between April and July 2025, underscoring its position as the nation’s top revenue generator.
However, despite the massive inflow, petroleum marketers and industry stakeholders are voicing strong concerns over the persistent failure of Nigeria’s government-owned refineries, warning that the country cannot continue to rely solely on crude exports and imports of refined products.
The revelation came from NNPC’s monthly financial and operational reports, a transparency initiative introduced under the leadership of its new Group Chief Executive Officer, Bayo Ojulari.
The figures show a mixed trend: revenues of N5.9tn in April, N6.01tn in May, N4.57tn in June, and N4.41tn in July. Yet, profit after tax recorded a steep decline, plummeting from N905bn in June to N185bn in July — a sharp 79.6% drop.
In total, the state-owned oil company recorded about N2.89 trillion in profit after tax over the four months, while remitting N7.97 trillion to the federation account between January and June.
These payments remain crucial for funding government operations and meeting state-level allocations.
Despite the record earnings, the Independent Petroleum Marketers Association of Nigeria (IPMAN) insists that the windfall means little if Nigeria continues to spend billions of dollars importing fuel while its local refineries remain moribund.
Speaking to our correspondent, IPMAN Publicity Secretary Chinedu Ukadike urged NNPC to fast-track the rehabilitation of the Port Harcourt, Warri, and Kaduna refineries. He warned that corruption, mismanagement, and endless delays have cost Nigerians affordable fuel and economic stability.
Ukadike disclosed that the Port Harcourt refinery is reportedly near 90–95% completion, with one major section, “Area 5,” nearly ready to restart operations pending minor logistics fixes.
He argued that NNPC should run the refineries first before considering technical partners or partial privatization.
“The refineries must remain under government control. Handing them over to entrepreneurs will only lead to exploitation of Nigerians.
With zero tolerance for corruption, NNPC’s new management can deliver results and stabilize fuel supply,” Ukadike stressed.
While celebrating revenue growth, critics point to NNPC’s mounting debt profile. According to the Federation Account Allocation Committee (FAAC), the company owed the Federal Government N6.57 trillion as of May 2025.
This includes N3.89tn in unpaid royalties to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and N2.53tn in tax liabilities to the Federal Inland Revenue Service (FIRS).
The World Bank has also flagged NNPC for remitting only 50% of gains from petrol subsidy removal, diverting the rest to clear arrears.
This has fueled calls for greater fiscal discipline and transparency, especially as Nigeria battles inflation, foreign exchange shortages, and rising fuel costs.
Historically, NNPC had been loss-making, posting a deficit of N803bn in 2018.
However, reforms saw the company rebound, recording its first-ever profit of N287bn in 2020, growing to N674bn in 2021, and an unprecedented N3.3tn in 2023, the highest in its 47-year history.
Yet, the recent slump in profit margins, combined with persistent refinery failures, suggests that the company’s success is still overly dependent on crude exports rather than domestic value addition.
Nigeria currently produces about 1.7 million barrels of crude oil per day, but nearly all of it is exported, while the nation imports refined petroleum products worth billions annually.
This paradox continues to drain foreign reserves and worsen fuel price volatility.
Energy analysts argue that restarting local refineries would save Nigeria billions in forex, reduce petrol scarcity, and strengthen economic sovereignty.
With global oil prices fluctuating and international energy markets shifting towards renewables, reliance on exports alone could leave Nigeria vulnerable.
As Ojulari settles into his role as NNPC’s new helmsman, stakeholders say the pressure is on to deliver a functional downstream sector.
For now, record-breaking revenues make headlines, but until Port Harcourt, Warri, and Kaduna refineries roar back to life, Nigerians may see little tangible relief at the pumps.
The NNPC’s next financial report is expected to give further clarity on whether its revenues can be sustained — or if July’s sharp profit decline signals tougher months ahead.
For marketers and citizens alike, the message is clear: a trillion-naira oil windfall means little without working refineries.