MARKET NEWS

• By Bola Joseph

Bashir Bayo Ojulari, NNPC Ltd’s Group Chief Executive Officer, has outlined plans to raise

 oil and condensate production to three million barrels per day and gas output to 12 billion standard cubic feet per day, while strengthening profitability across the company’s portfolio.

Reviewing the company’s performance during the year, the GCEO said gas transmission volumes increased by 18 per cent, gas sales rose by 12 per cent and gas export volumes grew by 24 per cent. Liquefied natural gas (LNG) sales also increased by 11 per cent.

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He said NNPC expanded access to cleaner energy by delivering nine new compressed natural gas (CNG) sites, bringing its total network to 19.

The company also broadened its social impact programmes, facilitating more than 6,000 cataract surgeries and providing financial literacy and workforce readiness training to over 300,000 members of the National Youth Service Corps (NYSC).

“Looking ahead, our focus is targeting three million barrels per day of oil and condensate and 12 billion standard cubic feet per day of gas,” the GCEO said.

“Improving profitability and returns across our portfolio remains central to our ambitions,” he stated.

To achieve these goals, the GCEO said NNPC was taking deliberate steps to rationalise non-core and underperforming assets, strengthen and expand strategic businesses such as power and trading, and optimise the ownership and operating models of key assets, including its refineries.

The targets were announced against a backdrop of what Ojulari described as improving domestic economic conditions despite persistent pressures in global energy markets. He said geopolitical tensions, trade frictions and increased supply from both OPEC+ and non-OPEC+ producers contributed to a softer oil price environment in 2025, even as global economic growth remained resilient at approximately three per cent.

According to the GCEO, Nigeria’s operating environment also improved during the year, with steady GDP growth, moderating inflation, a stronger and more stable naira and increased foreign capital inflows. He added that the recovery in oil and condensate production, supported by improved operational efficiency and asset reliability, strengthened the sector’s contribution to economic growth.

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Ojulari said the improved operating environment allowed NNPC to concentrate on factors within its control, particularly operational reliability, capital discipline and execution. Oil and condensate production increased by five per cent during the year, while natural gas production rose by nine per cent. Equity volumes across oil, condensate and natural gas increased by 11 per cent, reflecting a higher share of production captured by the company.

He attributed the increase in oil and condensate production primarily to new well additions, targeted interventions at OML 13 and improved asset integrity, which contributed approximately 32,400 barrels of oil per day. Natural gas production was supported by stronger performance from projects including Uzu field gas, Agbada NAG Train 1 and major well interventions, alongside more proactive maintenance and improved asset uptime.

The stronger operational performance translated into higher earnings and cash generation. NNPC reported a 33 per cent increase in profit after tax to N7.2 trillion, while dividends rose by 35 per cent year-on-year to N5.8 trillion. Operating cash flow also increased by 16 per cent to N12.8 trillion, while return on equity rose by 200 basis points to 16 per cent.

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In the medium term, NNPC plans to expand activity across its integrated value chain. In addition to the upstream production targets, the company is targeting annual gas transmission of 960 billion standard cubic feet and gas sales of 1.4 trillion standard cubic feet. Ojulari said the company would pursue targeted investments in infrastructure, LNG and gas-based industries while repositioning its power business for greater value.

The company also plans to expand CNG and cleaner-energy infrastructure, transform its trading business and reposition its shipping operations. It is also progressing Technical Equity Partnerships as part of efforts to restore refinery operations. Across the portfolio, NNPC intends to improve contracting-cycle efficiency, deepen its ESG performance and strengthen its Talent-to-Value programme to support execution.

Ojulari said NNPC’s transformation was anchored by the Petroleum Industry Act, which provided the legal foundation for a more commercially focused organisation. He said the company was strengthening governance, financial discipline and transparency while working to improve investor confidence and broaden access to capital.

The GCEO further said NNPC was developing a Net Zero 2050 strategy and continued to pursue environmental and social programmes. During the year, the company supported more than 15,000 farmers with climate-smart agriculture and market-readiness training, planted 80,000 trees through its afforestation and reforestation initiative and continued its participation in international sustainability frameworks.

Ojulari said the company’s longer-term ambition was to build a globally competitive and commercially focused energy company by scaling its growth engines, expanding critical infrastructure and monetising more of Nigeria’s resource base. He added that technology would remain central to improving agility, data use and enterprise-wide performance as NNPC seeks to strengthen investor confidence and position the company as an attractive destination for capital.