KEY POINTS
- NNPC’s group receivables fell by N11.66tn in 2025.
- Profit after tax rose 33% to N7.2tn.
- Operating cash flow increased 16% to N12.8tn.
The Nigerian National Petroleum Company Limited, NNPC, significantly reduced the amount owed to it by customers in 2025, as the state-owned energy company intensified efforts to recover outstanding payments for crude oil, natural gas and other petroleum products.
An analysis of NNPC’s 2025 audited financial statements showed that the company’s group trade and other receivables fell by N11.66tn during the year.
The receivables declined by 37.2 per cent, from N31.37tn in 2024 to N19.71tn as of December 31, 2025.
Receivables represent money owed to a company by customers for goods or services that have already been supplied but have not yet been paid for. In NNPC’s case, the amounts include payments due from customers that purchased crude oil, gas and other petroleum products.
The sharp decline suggests that NNPC made significant progress in addressing its outstanding customer debts, although the reduction in receivables does not necessarily mean the entire N11.66tn was recovered in cash.
Changes in receivables can also result from settlements, write-offs, impairments, reclassifications and other accounting adjustments.
NNPC also recorded a substantial reduction in its outstanding obligations to suppliers, contractors and other creditors.
At the group level, trade and other payables fell by 31.5 per cent, from N32.34tn in 2024 to N22.16tn in 2025. This represents a reduction of N10.18tn.
The fall means that NNPC ended 2025 with significantly lower outstanding payment obligations than it had a year earlier.
However, the reduction in receivables and payables should be viewed separately because they represent different sides of the company’s financial position. Receivables are amounts owed to NNPC, while payables are obligations NNPC owes to other parties.
Company-level figures show bigger decline
The decline was even more pronounced when NNPC’s company-level accounts were considered separately from the group figures.
Trade and other receivables at the company level fell by 56.1 per cent, from N50.14tn in 2024 to N22.02tn in 2025. That represents a reduction of N28.13tn.
Company-level trade and other payables also declined by 65.8 per cent, dropping from N34.73tn to N11.86tn.
The company and group figures have different reporting scopes and should therefore not be combined.
The sharp reductions came as NNPC stepped up efforts to recover money owed by customers and improve its financial discipline.
NNPC Group Chief Executive Officer, Bayo Ojulari, said the company had become more aggressive in pursuing outstanding debts since its transition toward a commercially driven operation under the Petroleum Industry Act.
According to Ojulari, NNPC can no longer depend on regular Federal Government budgetary allocations to support its operations. This has made the recovery of money owed by customers increasingly important to the company’s financial sustainability.
He said NNPC now tracks debt recovery monthly and engages the management of companies and other entities that owe the oil company money.
The recovery effort covers different parts of the business, including customers that have received crude oil and gas but have not completed payment.
Ojulari said NNPC had structured its recovery process so that relevant teams could follow up on outstanding gas and crude oil payments and monitor progress regularly.
The approach is intended to improve the company’s liquidity and ensure that money tied up in unpaid customer bills can be redirected toward operations, infrastructure and investments.
The debt recovery drive formed part of a broader improvement in NNPC’s financial performance in 2025.
The company’s profit after tax rose by 33 per cent to N7.2tn from N5.4tn in 2024, even though revenue fell by 24 per cent to N34.5tn.
NNPC attributed the decline in revenue mainly to lower international crude oil prices and reduced white-product volumes following the deregulation of the domestic petroleum market.
The company also reported a 25 per cent reduction in general and administrative expenses, which contributed to improved profitability.
Its operating cash flow increased by 16 per cent to N12.8tn, indicating stronger cash generation during the period.
NNPC also declared a dividend of N5.8tn for 2025, representing a 35 per cent increase from the previous year.
