NNPC's Remarkable Profit Surge: A Game-Changer in Nigeria's Oil Sector

NNPC Ltd reported a net profit of 5.4 trillion naira ($3.6 billion) in 2024, a significant 64% increase from the previous year. The company aims for substantial growth in energy investments and production, despite challenges like theft and underinvestment in Nigeria.

Nigeria's state oil company, NNPC Ltd, announced an impressive net profit of 5.4 trillion naira ($3.6 billion) for 2024, marking a 64% increase over the previous year. This substantial growth underscores the firm's transformation and dedication, emphasized by Group Chief Executive Bashir Bayo Ojulari.

NNPC is setting ambitious goals, including mobilizing $60 billion in energy investments by 2030 and aiming to boost oil and gas production significantly. The company plans to raise oil output to 2 million barrels per day by 2027 and to 3 million by 2030, alongside increasing gas production to 12 billion cubic feet per day by the decade's end.

However, meeting these targets presents challenges. Nigeria has struggled with OPEC+ quota compliance due to theft, pipeline vandalism, and underinvestment, with 2024 output averaging 1.5 million barrels per day, below the 1.8 million target. Analysts stress that overcoming security issues and attracting foreign capital are key to achieving NNPC's objectives.

(With inputs from agencies.)