Strategic Reforms and Cost Reductions Drive Efficiency at NNPC Limited
The Nigerian National Petroleum Company Limited (NNPC Limited) has made significant strides in operational efficiency, reducing its operating costs by $3.4 billion through a comprehensive contract restructuring and optimisation programme. This achievement marks one of the most substantial efficiency gains since the company transitioned into a commercially driven enterprise.
During the opening ceremony of the 25th NOG Energy Week in Abuja, the Group Chief Executive Officer (GCEO) of NNPC Limited, Bashir Bayo Ojulari, presented the company’s performance scorecard, highlighting the success of its strategic initiatives. The cost-cutting measures were achieved without compromising operational speed, underscoring the company’s commitment to efficiency as a core strategy for delivering value to both the Federation and investors.
Key Performance Metrics
The performance report showcased several improvements across critical areas, including crude oil production, gas output, government revenue, export terminal efficiency, and operational transparency. According to Ojulari, the company recorded a six per cent increase in crude oil production, reaching 569.7 million barrels year on year. Gas production also rose by 8.1 per cent, reaching 2,576 billion standard cubic feet.
In addition, NNPC’s contribution to government revenue increased by 21.8 per cent, amounting to N19.5 trillion over the review period. These figures reflect the tangible outcomes of the company’s transformation efforts, which have focused on enhancing operational discipline, commercial efficiency, and strategic reforms.
Ojulari stated, “These are not just numbers. They demonstrate that operational discipline, commercial efficiency, and strategic reforms can simultaneously increase production, reduce costs, and improve returns to the nation.”
Production Targets and Infrastructure Recovery
The GCEO revealed that Nigeria’s crude oil production had reached about 1.71 million barrels per day, the highest level in five years. Meanwhile, NNPC Exploration and Production Limited attained a record production of 365,000 barrels per day.
Looking ahead, NNPC has set ambitious targets to raise crude oil production to two million barrels per day by 2027 and three million barrels per day by 2030. The company also projects an increase in total gas production from approximately 7.62 billion cubic feet per day this year to 10 billion cubic feet per day in 2027 and 12 billion cubic feet per day by 2030.
The improvements in production were attributed to enhanced operational stability and infrastructure recovery across the country’s oil-producing assets. Ojulari noted that Nigeria’s crude oil export terminals had achieved an average recovery factor of 98 per cent between April 2025 and May 2026, a stark contrast to the operational lows of barely one per cent at the Bonny Oil and Gas Terminal in June 2022.
Operational Reliability and Investor Confidence
The GCEO highlighted the full operational status of major evacuation pipelines, including the Trans Niger Pipeline, Trans Escravos Pipeline, Trans Ramos Pipeline, Trans Forcados Pipeline, and the Oando-Brass line, all operating at 100 per cent availability. This reliability instills confidence among producers, investors, and international buyers.
Ojulari also announced that NNPC maintained 100 per cent compliance with all Joint Venture cash-call obligations throughout 2025 and into June 2026. However, he noted that some Joint Venture partners remained in partial or significant default, forcing the national oil company to assume additional funding responsibilities in certain ventures.
“Our commitment to our Joint Venture obligations remains absolute,” Ojulari said. “We have sustained 100 per cent compliance because we understand that credibility and trust are fundamental to long-term partnerships.”
Commercial Milestones and Transparency Initiatives
Beyond operational performance, Ojulari highlighted several strategic commercial milestones. NNPC signed landmark Gas Sale and Purchase Agreements covering 1.29 billion standard cubic feet per day of long-term LNG feed gas and another 750 million standard cubic feet per day for domestic industrial gas supply to DFL FZE and Dangote Refinery. These agreements are expected to unlock more than $20 billion in associated investments, with seven additional commercial transactions already under negotiation.
Additionally, NNPC resumed full monthly remittances to the Federation Account in July 2025, reinstated monthly business performance reporting, and hosted its first-ever earnings call in November 2025 as part of efforts to deepen transparency and strengthen investor confidence.
Vision for Africa’s Energy Future
Speaking on the broader outlook for Africa’s energy industry, Ojulari urged governments, investors, regulators, and operators to deepen collaboration rather than pursue isolated investments. He argued that fragmented partnerships remain a major constraint to Africa’s energy transformation despite the continent’s abundant resources.
“The future of African energy will not be determined solely by the resources beneath our soil, but by the quality of the partnerships we forge above it,” Ojulari said. “At NNPC Limited, we see ourselves not just as an energy producer but as an ecosystem builder, connecting capital, technology, policy, talent, and markets to create lasting value for Nigeria and Africa.”
He emphasized that stronger collaboration among stakeholders is essential to unlocking Africa’s full energy potential, as the continent currently receives only a small fraction of global energy investment despite holding 17 per cent of global natural gas reserves alongside vast crude oil and renewable energy resources.
NNPC Limited has intensified its commercial transformation since becoming a fully incorporated company under the Petroleum Industry Act. Over the past year, the company has focused on improving operational efficiency, reducing production costs, increasing transparency, and attracting fresh investments into Nigeria’s oil and gas sector.
The latest scorecard comes as the Federal Government pursues higher crude oil production, expanded gas utilisation, and stronger investor confidence through reforms, infrastructure upgrades, and enhanced security across oil-producing assets.
