A leading policy advocacy organisation, the Centre for Energy Accountability and Reform (CEAR), has commended the Nigerian National Petroleum Company (NNPC) Limited for achieving a groundbreaking Profit After Tax of N5.4 trillion for the 2024 financial year. The group stated that this performance marks a pivotal transformation in the nation's oil and gas industry, demonstrating that disciplined management and commercial reforms are yielding tangible outcomes.
Reforms Driving Unprecedented Financial Turnaround
In a statement issued from Abuja and signed by its Executive Director, Dr. Ibrahim Ahmed, CEAR described the result as clear evidence that NNPC's ongoing restructuring and operational enhancements are generating significant financial and institutional gains. The profit announcement, made during an official briefing, represents a 64 percent surge from the N3.297 trillion recorded in 2023.
The company's revenue also witnessed a massive jump, climbing to N45.1 trillion, an 88 percent increase. CEAR attributes this growth to improved crude oil production, stronger downstream operations, and a renewed culture of commercial discipline within the company.
The advocacy centre highlighted that the figures confirm NNPC's successful transition into a limited liability company has effectively shifted its focus towards efficiency, transparency, and robust corporate governance. CEAR specifically credited the Group Chief Executive Officer, Bayo Ojulari, for navigating the company towards stability and smarter resource management at a time when global investors are particularly cautious about governance in national oil firms.
"This performance is not a stroke of luck," the CEAR statement read. "It reflects a deliberate and disciplined approach to restructuring and commercial repositioning. Under Bayo Ojulari’s guidance, NNPC Limited has shown that a state-owned energy firm can be profitable, competitive and aligned with national growth objectives."
Sustaining Momentum for Future Growth
CEAR noted that the comprehensive reforms across upstream, midstream, and downstream operations are successfully addressing years of underinvestment, pipeline vandalism losses, regulatory hurdles, and sluggish production growth. The group aligned the improved financial health with President Bola Tinubu's Renewed Hope Agenda, particularly its pillars of fiscal discipline and enhanced energy sector governance.
While acknowledging a dip in foreign exchange earnings within the 2024 report, CEAR stressed that this shortfall underscores the critical need to persist with reforms aimed at boosting production and adding value. The organisation expressed strong support for NNPC's ambitious targets, which include:
- Raising crude oil output to 2 million barrels per day by 2027.
- Achieving 3 million barrels per day by 2030.
- Scaling gas production to 12 billion standard cubic feet per day within the same period.
CEAR also praised the company's strategy to mobilise approximately $60 billion in new investments across the sector, stating that such capital is vital for job creation, revenue expansion, and powering Nigeria's energy transition.
A New Benchmark for Public Sector Excellence
"With this profit, NNPC Limited has sent a strong message that Nigeria’s energy industry can be globally competitive when driven by vision and professionalism," CEAR asserted.
The centre called on regulators, industry stakeholders, and policymakers to avoid political distractions and continue supporting the reforms that are restoring credibility and financial sustainability throughout the petroleum value chain. It concluded that the NNPC's performance under Ojulari's leadership has effectively reset the standard for what is achievable in Nigeria's public sector, proving that with the right governance, state-owned enterprises can thrive.
