Nigeria’s state-owned energy company, the Nigerian National Petroleum Company Limited (NNPC), has remitted ₦11.15 trillion to the Federal Government between January and September 2025. The contribution represents one of the strongest revenue inflows recorded in recent years and underscores NNPC’s growing financial importance in the nation’s economy.
The company maintained stable crude oil and gas production levels despite multiple operational constraints across upstream assets, enabling sustained earnings and statutory remittances.
Strong Oil and Gas Output Supported Record Remittance
According to NNPC’s latest operational update, crude oil and condensate production averaged 1.58 million barrels per day, while natural gas output remained steady at about 7 billion standard cubic feet per day.
These figures, although slightly below peak 2025 levels, delivered enough revenue momentum to support strong federal allocations during the period.
NNPC credited the performance to:
- Improved operational efficiency
- Enhanced asset management
- Tighter export discipline
- Better revenue assurance measures across joint-venture and production-sharing contracts
This combination ensured consistent revenue inflows despite field shutdowns, security concerns, and flooding-related disruptions in some producing regions.
Pipeline Projects Strengthen Nigeria’s Gas Infrastructure Outlook
Two major gas-infrastructure projects significantly shaped NNPC’s strategy throughout 2025:
AKK (Ajaokuta–Kaduna–Kano) Gas Pipeline
The AKK pipeline—designed to expand gas supply to northern Nigeria—continued to advance, with NNPC fast-tracking construction activities and targeting major progress milestones before the end of 2025.
OB3 (Obiafu–Obrikom–Oben) Gas Pipeline
The OB3 pipeline, considered the most critical gas transmission link in West Africa, saw renewed efforts around the complex Niger River crossing, a key obstacle delaying full completion.
Both pipelines are central to Nigeria’s transition toward a gas-led industrial economy, a cornerstone of NNPC’s long-term energy strategy.
Production Challenges Persist but Do Not Derail Revenue
Despite strong financial results, NNPC’s report highlighted several production headwinds:
- Temporary shutdowns at joint-venture facilities
- Delays in operational activities across key Oil Mining Leases (OMLs)
- Flooding and weather-induced disruptions
- Logistics and security challenges in the Niger Delta
These issues caused output to fluctuate, particularly in the third quarter of 2025. However, revenue performance remained resilient due to improved cost controls and stable global crude prices.
Impact on Nigeria’s Fiscal Position
The ₦11.15 trillion remittance served as a critical boost for the Federal Government during a period of:
- Rising budget deficits
- FX market instability
- High debt servicing obligations
- Lower-than-expected non-oil revenues
Analysts note that without NNPC’s strong remittances, Nigeria’s fiscal position in 2025 would have been significantly weaker.
Outlook: Sustaining Momentum Into 2026
Experts believe that NNPC’s financial performance could improve further if:
- Pipeline vandalism is reduced
- The AKK and OB3 pipelines reach operational milestones
- Crude oil theft is curtailed
- Production volumes stabilize above 1.6 million barrels per day
