The Nigerian National Petroleum Company Limited recorded a profit after tax of N502bn in November 2025, sustaining its profitability streak despite a decline in crude oil and condensate production during the month.

This came as the state-owned energy firm simultaneously joined an intensifying price war in the downstream sector by cutting the pump price of petrol below N800 per litre.

Figures from the NNPC Monthly Financial and Operations Report for November 2025, released on Wednesday, showed that the national oil company generated N4.36tn in revenue during the month, reflecting a marginal increase compared with October.

The improved performance was attributed to stronger gas output, full pipeline availability, and steady domestic fuel supply, which helped offset challenges in crude oil production.

Crude oil and condensate production averaged 1.36 million barrels per day in November, recovering slightly from the 1.30mbpd recorded in October, but remaining below the year’s peak of 1.77mbpd achieved earlier in 2025. The November figure marked the first rebound after three consecutive months of decline between August and October.

Gas production, however, remained relatively resilient. Output stood at 6,968 million standard cubic feet per day in November, compared with 6,997mmscf/d in October, underscoring the continued role of gas in stabilising the company’s operational performance amid crude-related disruptions.

“NNPC said the N502bn profit recorded in November was driven by improved gas production, strong trading performance, and sustained infrastructure availability, despite operational challenges in some crude-producing assets,” the report read.

The November profit represented a slight improvement on October’s performance, consolidating the company’s strong earnings momentum in the second half of the year. Revenue for the month stood at N4.358tn, driven largely by gas sales, trading activities, and improved infrastructure uptime.

Cumulatively, statutory payments to the Federation Account rose to N12.12tn between January and October 2025, highlighting NNPC’s growing fiscal contribution to government revenues at a time of heightened pressure on public finances.

The sustained profitability reflects the company’s post-commercialisation structure, improved cost discipline, and expanding gas footprint, even as oil production remains vulnerable to operational setbacks and asset-specific disruptions.

Data from the report showed that crude and condensate output in November benefited from partial recovery at some assets following earlier disruptions. Production averaged 1.36mbpd, compared with 1.30mbpd in October, representing an increase of about 60,000 barrels per day month-on-month.

However, output remained below levels recorded in the first half of the year, when production averaged above 1.40mbpd between January and July. Production declined steadily from 1.38mbpd in August to 1.37mbpd in September and 1.30mbpd in October, before the modest rebound in November.

NNPC attributed the subdued performance to ongoing repairs on the Forcados export line (OML 30), a force majeure at Egbema (OML 61), and delays in achieving first oil from the West African Exploration Project.

Petrol price cut

While posting strong earnings, NNPC also moved to adjust to changing dynamics in the downstream market. The company bowed to market pressure by dropping the price of Premium Motor Spirit (petrol) below N800 per litre, joining an intensifying price war triggered by recent cuts by the Dangote refinery.

The development came about three weeks after the Dangote refinery slashed the ex-depot price of petrol from N828 to N699 per litre and directed all MRS filling stations to adjust pump prices to N739 from around N900 per litre.

Checks showed that the state-owned oil company, which serves as a supplier of last resort, was selling petrol at about N875 per litre two weeks earlier when MRS began selling at N739 per litre. A week later, NNPC reduced prices to between N825 and N845 per litre, depending on location.

Many NNPC filling stations in Lagos and Ogun states reportedly struggled to attract customers as motorists opted for cheaper fuel at rival outlets. In response, NNPC joined the fray by slashing pump prices below N800 per litre to retain customers.

Checks on Wednesday confirmed that some NNPC filling stations along the Lagos-Ibadan Expressway sold petrol at N785 per litre, enabling them to compete with nearby outlets.

According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NNPC was one of the biggest petrol importers in November, having imported fuel to build inventory and guarantee supply during the peak demand period. However, with a landing cost of about N828 per litre, importers such as NNPC struggled to compete with Dangote’s N739 per litre pump price, forcing them to sell below cost.

With the commencement of petrol production by the Dangote refinery in September 2024, the sector became fully deregulated, leading to the disappearance of queues at NNPC stations that were once caused by price differentials.

Other marketers also adjusted prices. Heyden sold petrol at about N840 and N850 per litre, while AP filling stations sold petrol at prices ranging from N740 to N839 per litre, depending on location. Filling stations close to MRS outlets were observed to have cut prices to avoid losing customers.

Nigerians who spoke with our correspondent commended Dangote for what they described as a Christmas gift, urging him to reduce prices further in the new year. Dangote had earlier vowed to enforce the new pricing regime.

“We are going to use whatever resources we have to make sure that we crash the price down. For this December and January, we don’t want people to sell petrol for more than N740 nationwide. Those who want to keep the price high to sabotage the government, we will fight as much as we can to make sure that these prices are down,” Aliko Dangote said.

Speaking on the price competition, the spokesperson of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said marketers who refused to reduce prices would lose customers as bank interest charges accumulate.

“We are in a situation where competition can be determined by price. Patronage will be determined by pricing. Nobody is against you; nobody is regulating you. You will regulate yourself. The market will regulate itself. The time has gone when people were queuing at NNPC filling stations. Wherever the fuel is cheap, that is where the marketers go. So, we are in a price war. Demand and supply determine the price,” Ukadike said.

Meanwhile, the Group Chief Executive Officer of NNPC, Bayo Ojulari, assured Nigerians that the ongoing price competition in the downstream petroleum sector would ultimately benefit consumers.

He described the current market tensions as a natural consequence of Nigeria’s transition from total import dependence to domestic refining, emphasising that the company is no longer responsible for petroleum product pricing or regulation under the Petroleum Industry Act.

Gas production stable

Meanwhile, in contrast to crude output as contained in the NNPC financial report for November, gas production remained comparatively stable throughout 2025. November output of 6,968mmscf/d was broadly in line with October’s 6,997mmscf/d, following a rebound from a sharp dip to 6,284mmscf/d in September. Earlier in the year, gas production peaked at 7,722mmscf/d in July before moderating in the third quarter.

Gas sales, reported on a two-month lag basis, stood at 4,650mmscf/d in November, slightly lower than the 4,713mmscf/d recorded in October, but significantly higher than September’s 3,443mmscf/d. The sustained gas performance reinforced NNPC’s strategic push to deepen gas monetisation as Nigeria positions itself as a regional gas hub and transitions to a lower-carbon energy mix.

The report also showed that upstream pipeline availability reached 100 per cent in November, an improvement that helped stabilise production and evacuation during the period.

On the downstream front, PMS availability across NNPC Retail Limited stations stood at 61 per cent, while the company’s nationwide wetness map indicated moderate to high fuel availability across most states, easing supply concerns that had flared intermittently earlier in the year.

NNPC also disclosed significant progress on key gas infrastructure projects during the month. The Ajaokuta–Kaduna–Kano gas pipeline achieved completion of its mainline welding and pressure testing and is now on track for completion in 2026. Similarly, work progressed on the Obiafu-Obrikom-Oben gas pipeline, with geotechnical data acquisition completed at the River Niger crossing and early construction works underway ahead of drilling.

The company said it was intensifying collaboration with its joint venture and production-sharing contract partners to complete scheduled turnaround maintenance across facilities and position assets for stronger output in 2026.

Beyond operations, the NNPC Foundation recorded major recognition in November, winning five awards at the 2025 SERAS Sustainability Africa Awards, including Most Responsible Organisation in Africa and Best in Gender Equality. The Foundation also reported that the rehabilitation of three wards at the National Orthopaedic Hospital, Igbobi, Lagos, had reached 90.1 per cent completion as of November 30.