The Nigerian National Petroleum Company Limited (NNPC Ltd) has reported a significant downturn in its monthly profit after tax, plunging from an impressive ₦905 billion recorded in June 2025 to just ₦185 billion in July. This marks a steep 79.6 percent decline within a single month, raising concerns among industry watchers and economic analysts.
According to financial data released by the national oil company, the drop in profitability is attributed to a mix of operational challenges and market fluctuations affecting crude oil output and revenue generation. While NNPC Ltd did not immediately release detailed breakdowns explaining the sharp drop, insiders point to reduced production levels, volatile global oil prices, and rising costs linked to logistics and security in oil-producing regions as contributing factors.
The dramatic fall in profit comes at a time when Nigeria is grappling with revenue shortfalls and rising public debt, putting added pressure on the government’s main revenue-generating entity. NNPC Ltd, which was officially commercialised in 2022 and now operates as a limited liability company, has been under scrutiny to consistently deliver strong financial results amid calls for greater transparency and accountability in the oil sector.
Industry experts note that while fluctuations in monthly profit are not uncommon, a decline of this magnitude is alarming and could signal deeper structural issues that need urgent attention. With the global energy landscape constantly shifting, the performance of NNPC Ltd remains central to Nigeria’s economic stability.
As the nation awaits further explanations and remedial steps from the company’s management, stakeholders have called for intensified reforms, especially in the areas of production efficiency, cost control, and governance.
