The Nigerian National Petroleum Company Limited (NNPC Ltd.) is set to restructure its portfolio by rationalising non-core and underperforming assets and reviewing the ownership and operating models of key businesses, including its refineries, as part of efforts to improve profitability, capital efficiency and shareholder returns.

Group Chief Executive Officer of NNPC Ltd., Bashir Bayo Ojulari, disclosed this while presenting the company’s 2025 performance and outlining its medium-term strategy, saying the company was taking deliberate steps to build a more commercially focused and globally competitive energy business.

According to Ojulari, the strategy will involve strengthening and scaling strategic businesses such as power and trading, while optimising the ownership and operating structures of key assets.

“These actions are aimed at improving returns, enhancing capital efficiency and positioning our businesses for sustainable long-term growth,” he said.

Stronger earnings despite market headwinds

Ojulari said the restructuring drive would build on a year of stronger operational and financial performance, despite a challenging global oil market characterised by geopolitical tensions, trade frictions and increased supply from OPEC+ and non-OPEC+ producers.

He said global economic growth remained resilient at approximately three per cent in 2025, while easing inflation and more accommodative monetary policies provided some support to the international economy.

Nigeria, meanwhile, experienced improving macroeconomic conditions, including steady GDP growth, moderating inflation, a stronger and more stable naira, and increased foreign capital inflows, he said.

The GCEO said these developments created a more supportive operating environment, although the company remained focused on factors within its control, particularly operational reliability, capital discipline and execution.

NNPC’s financial performance reflected the impact of these efforts, with profit after tax rising by 33 per cent to N7.2 trillion.

Dividends increased by 35 per cent year-on-year to N5.8 trillion, while operating cash flow rose by 16 per cent to N12.8 trillion.

Return on equity also increased by 200 basis points to 16 per cent.

Ojulari said the results demonstrated the company’s cash-generating capacity and provided greater flexibility to fund its strategic priorities.

Oil, gas production rises

The company also recorded growth in production across its upstream portfolio.

Oil and condensate production increased by five per cent, driven by new well additions, targeted interventions at OML 13 and improved asset integrity.

The GCEO said these interventions contributed approximately 32,400 barrels of oil per day.

Natural gas production increased by nine per cent, supported by stronger performance from projects including Uzu field gas and Agbada NAG Train 1, as well as major well interventions.

More significantly, NNPC’s equity volumes across oil, condensate and natural gas increased by 11 per cent, enabling the company to capture a larger share of production and associated value.

Ojulari attributed the performance to improved asset reliability, maintenance and operational discipline.

Gas business records double-digit growth

Gas emerged as one of the strongest-performing areas of the company’s portfolio during the year.

Gas transmission volumes increased by 18 per cent, while sales volumes grew by 12 per cent. LNG volumes also increased by 11 per cent.

Ojulari said the performance demonstrated the growing contribution of gas to NNPC’s integrated business portfolio.

The growth in oil and gas operations helped offset a sharp decline in white-product sales, which fell by 60 per cent.

He attributed the decline to the structural change in NNPC’s downstream market role following the deregulation of gasoline prices in 2024.

NNPC sets ambitious medium-term targets

Looking ahead, the company plans to pursue significant growth across its integrated value chain.

In the upstream sector, NNPC is targeting three million barrels per day of oil and condensate production and 12 billion standard cubic feet per day of natural gas production.

The company plans to achieve this through lower unit operating costs, portfolio rationalisation and increased deepwater production.

In Gas, Power and New Energy, NNPC is targeting annual gas transmission volumes of 960 billion cubic feet and gas sales of 1.4 trillion cubic feet.

The strategy includes targeted investments in gas infrastructure, LNG and gas-based industries, alongside efforts to reposition the power business for greater value.

In the downstream segment, the company is targeting annual crude trading volumes of 430 million barrels.

It also plans to transform its trading business, expand compressed natural gas and cleaner-energy infrastructure, reposition its shipping business and progress Technical Equity Partnerships aimed at restoring refinery operations.

Sustainability and social investments

Ojulari also highlighted NNPC’s environmental, social and governance initiatives during the year.

The company added nine CNG sites to its network, bringing the total to 19 stations.

Its social interventions included facilitating more than 6,000 cataract surgeries, while more than 300,000 National Youth Service Corps members received financial literacy and workforce-readiness training.

More than 15,000 farmers also received training in climate-smart agriculture and market readiness.

NNPC said it planted 80,000 trees through its afforestation and reforestation initiative and developed a Net Zero 2050 strategy to guide its longer-term decarbonisation efforts.

Women accounted for 23 per cent of the company’s leadership, according to Ojulari, above the global industry average of 17 per cent cited by the company.

Building a commercially driven NNPC

Ojulari said the Petroleum Industry Act had provided the legal foundation for NNPC’s transformation and sharpened its commercial focus.

He said the current leadership was building on that foundation through stronger governance, financial discipline, transparency and accountability.

The company also intends to use technology to improve agility, data-driven decision-making and enterprise-wide performance.

“Improving profitability and returns across the portfolio remains central to our ambitions,” Ojulari said, stressing that NNPC would continue to optimise its portfolio and deploy capital with greater discipline.

He said the ultimate objective was to build a globally competitive energy company capable of consistently delivering strong returns while strengthening investor confidence and attracting capital.

“Our ambition is to build a globally competitive, best-in-class energy company that consistently delivers strong returns, actively optimises its portfolio and deploys capital with discipline,” the GCEO said.