Nigerian National Petroleum Company Limited (NNPCL) spent about N53.21 trillion on operational expenses, taxes and other obligations over the last 18 months.

The expenditure, recorded between January 2025 and June 2026, highlights the enormous cost of running Africa’s largest national oil company despite record earnings from crude oil and gas operations.

An analysis of the company’s official monthly financial summaries for the 2025 financial year and the first six months of 2026 shows that NNPCL generated N82.24 trillion during the period

However, only N8.04 trillion was retained as Profit After Tax (PAT), while N20.99 trillion was remitted as statutory payments to the Federation Account.

The figures indicate that roughly 65 per cent of every naira earned during the period was absorbed by operating expenditure, taxes, legacy obligations and other operating costs, showing the financial pressures confronting the state-owned energy company, even as it remains one of Nigeria’s biggest revenue contributors.

The financial profile reflects a company operating at high turnover but with relatively modest profitability. For every N100 generated, about N65 was consumed by expenses and statutory obligations before profits were recorded, leaving NNPCL with a net profit margin of less than 10 per cent over the period.

The monthly figures also reveal a business whose earnings fluctuated sharply, reflecting the realities of oil production, international crude prices and operational costs.

NNPCL opened 2025 on a weak note, posting N3.824 trillion in revenue in January but recording a N161 billion loss despite making N821 billion in statutory payments. The company rebounded strongly in February, with revenue jumping to N6.624 trillion, generating N987 billion in profit and remitting N3.099 trillion to the government.

The recovery proved short-lived. In March, revenue slipped to N5.475 trillion, and the company returned to the red with a N7 billion loss, even as statutory payments remained above N1 trillion.

The second quarter marked a significant turnaround. Revenue rose to N5.891 trillion in April, producing N748 billion in profit. May became one of the strongest months of the year, with revenue reaching N6.008 trillion, profit climbing to N1.054 trillion and statutory payments standing at N1.094 trillion. June sustained the momentum, delivering N5.105 trillion in revenue and N904 billion in profit.

The second half of 2025 painted a more restrained picture. July saw revenue fall to N4.406 trillion, with profit dropping sharply to N180 billion, while statutory payments increased to N1.13 trillion. August brought modest relief as revenue improved to N4.655 trillion and profit recovered to N539 billion.

September remained relatively subdued, with revenue declining to N4.269 trillion, profit easing to N216 billion and statutory payments rising to N1.286 trillion. October saw revenue rebound to N5.078 trillion, generating N447 billion in profit.

The year closed with moderate earnings. November recorded N4.358 trillion in revenue and N502 billion in profit, while December delivered N4.824 trillion in revenue, N351 billion in profit and N1.27 trillion in statutory remittances.

By the end of 2025, NNPCL had generated N60.5 trillion in revenue, posted N5.76 trillion in PAT and transferred about N14.7 trillion to the Federation Account.

The first half of 2026 showed a different financial pattern, with revenues starting lower and then accelerating sharply in the second quarter.

January recorded N2.571 trillion in revenue, N385 billion in profit, and N726 billion in statutory payments. February generated N2.68 trillion, although profit slowed to N136 billion as statutory obligations rose to N1.078 trillion. March maintained a similar trajectory, with revenue increasing slightly to N2.774 trillion and profit recovering to N276 billion, while statutory payments remained above N1 trillion.

The strongest turnaround came in April, when revenue surged to N4.971 trillion, nearly doubling March’s performance. Although profit improved to N481 billion, the increase in earnings did not translate proportionately into higher profitability, suggesting that rising operational costs continued to absorb much of the additional income.

May generated N4.335 trillion in revenue with N462 billion in profit, while statutory payments climbed to N1.144 trillion.

June concluded the period with N4.389 trillion in revenue, N535 billion in profit and N1.428 trillion in statutory payments, representing the company’s largest monthly remittance to the government during the first half of the year.

Operational performance also improved alongside the financial results. In June 2026, NNPCL reported gas production of 7,841 million standard cubic feet per day, its highest output during the reporting period, indicating stronger upstream activity despite continued pressure on profitability.

Overall, the company generated N21.72 trillion in revenue during the first six months of 2026, recorded N2.275 trillion in profit after tax and remitted N6.286 trillion to the government.

The latest figures mark a significant shift from the company’s recent audited performance. NNPCL generated N23.99 trillion in revenue in 2023 and recorded N3.297 trillion in profit after tax, representing a net profit margin of about 13.7 per cent.

In 2024, revenue almost doubled to N45.1 trillion, while profit rose by 64 per cent to N5.4 trillion, although the net profit margin eased to roughly 12 per cent.

By comparison, the 18-month period from January 2025 to June 2026 saw revenue surge to N82.24 trillion and profit after tax reach N8.04 trillion.

However, profitability weakened further as the net profit margin fell below 10 per cent, suggesting that while NNPC continues to expand its revenue base and increase remittances to government, a growing share of its earnings is being absorbed by operating costs, taxes and legacy obligations.