• NNPC Ltd reported a post-tax profit of 5.4 trillion naira ($3.6 billion) for 2024, continuing a profit streak that began in 2020.
• Reforms under the 2021 Petroleum Industry Act strengthened governance, financial discipline and transparency, enabling sustained profitability.
• NNPC Ltd aims to mobilise $60 billion in investments by 2030, and analysts say it must spend at least $5 billion annually to sustain production at 1.6 million bpd.

Nigeria struggled for years to generate meaningful profits from its national oil company despite being one of Africa’s largest crude producers. The government launched a series of reforms to reverse the trend, and NNPC Ltd has since reported steadily rising earnings.

NNPC Ltd said it posted a post-tax profit of 5.4 trillion naira ($3.6 billion) in 2024, according to international media reports published on November 24. The company has consolidated a continuous upward profit trajectory since 2020, when it recorded a profit of 287 billion naira ($191 million).

The surge in earnings reflects the impact of reforms implemented after the Petroleum Industry Act (PIA) took effect in 2021 and converted the company into a commercial entity. The new status required NNPC Ltd to adopt stricter management procedures and apply stronger financial discipline across its operations.

Since the reform, the state-owned company has reinforced its governance and oversight mechanisms, particularly in the monitoring of operations and financial flows. Authorities also tightened transparency and compliance requirements for the oil sector, while the regulatory framework now mandates closer performance tracking of state-owned enterprises, providing clearer visibility into their financial positions.

NNPC Ltd plans to mobilise $60 billion in investments by 2030 to support its long-term projects. A Wood Mackenzie analysis indicates that the company must invest at least $5 billion annually to maintain crude output at about 1.6 million barrels per day.

This article was initially published in French by Abdel-Latif Boureima

Adapted in English by Ange Jason Quenum