The Nigerian National Petroleum Company Limited cut its general and administrative expenses by 28% to N2.6 trillion in 2025, as the company posted a 33% increase in profit after tax despite a sharp decline in revenue.
NNPC’s audited financial statements showed that general and administrative expenses fell from N3.58 trillion in 2024 to N2.59 trillion in 2025.
Group Chief Executive Officer Bashir Bayo Ojulari disclosed the reduction during the company’s presentation of its 2025 financial performance in Abuja, as he highlighted sustained cost discipline and improved operational efficiency.
The cost reduction came as NNPC’s revenue declined by 24% to N34.5 trillion from N45.1 trillion in 2024. The company attributed the decline principally to lower crude oil prices and reduced white-product volumes following market deregulation in 2024.
Yet profit after tax increased by 33% to N7.2 trillion from N5.4 trillion.
The PUNCH reported on September 30, 2026, that NNPC’s management attributed the stronger earnings to cost discipline, improved operational efficiency and efforts to recover outstanding debts from crude oil and gas customers.
Chief Financial Officer Adedapo Segun said the company focused on areas within its control as revenue came under pressure, particularly operating costs and administrative expenses.
He said NNPC reduced administrative expenses from about 8% of revenue in 2024 to 7% in 2025, according to The PUNCH.
The improvement in profitability was not driven by cost cuts alone.
NNPC’s other income more than doubled to N8.42 trillion in 2025 from N3.39 trillion in 2024, while the company recorded a N325.43 billion net impairment reversal on financial assets, compared with a N753.56 billion impairment charge in 2024, according to its audited results as reported by TheCable on September 30, 2026.
The company also recovered significant long-standing receivables, allowing it to reverse provisions previously made against some debts.
Operating profit consequently rose by 24.7% to N13.51 trillion from N10.84 trillion, although finance costs increased from N1.75 trillion to N2.48 trillion.
NNPC’s cost of sales remained its largest expense at N25.14 trillion, while general and administrative expenses represented another major cost pool. The Guardian reported on October 2, 2026, that the combined cost of sales, selling and distribution expenses and G&A reached N27.76 trillion, equivalent to about 80% of the company’s revenue.
At the same time, NNPC’s taxes, royalties and other remittances to the government rose by 39% to N22.3 trillion, according to Ojulari. The company also declared a N5.8 trillion dividend, up 35% from the previous year.
Operationally, crude oil and condensate production averaged 1.77 million barrels per day in 2025, the company’s highest level in five years, while natural gas production averaged 7.2 billion standard cubic feet per day.
The figures show that NNPC’s stronger profit was the product of several factors rather than administrative cost savings alone. Higher other income, debt recovery, impairment reversals, stronger production and tighter cost control all helped offset the weaker revenue environment.
The bigger test for NNPC will be whether the cost discipline and operational gains can be sustained as one-off financial benefits fade and crude prices remain outside the company’s control.
