NNPC Records N60.5trn Revenue as Cross River Regains Oil-Producing Status
Nigeria's state oil company posted record 2025 revenue of N60.5 trillion with N5.7 trillion profit, while Cross River State moves toward reinstatement as oil-producing territory, potentially reshaping federal revenue allocation.
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The Nigerian National Petroleum Company Limited (NNPC) reported revenue of N60.5 trillion for 2025, marking a substantial increase in the state-owned enterprise's financial performance alongside profit after tax of N5.76 trillion, according to the company's monthly report published Thursday.
The revenue figure represents a significant milestone for Nigeria's petroleum sector, which accounts for approximately 90% of the country's foreign exchange earnings. NNPC remitted N14.706 trillion to statutory government agencies during the period, underscoring the corporation's role as the primary revenue generator for Africa's largest economy. The company disclosed these figures in its monthly report published on its website, as reported by Vanguard News.
Revenue Performance and Government Remittances
The N60.5 trillion revenue represents the consolidated earnings from NNPC's upstream, midstream, and downstream operations, including crude oil sales, gas production, and refined petroleum products. The profit margin of 9.5% reflects improved operational efficiency compared to previous fiscal periods when the company struggled with subsidy payments and operational losses.
The N14.706 trillion remitted to government coffers flows through multiple channels, including the Federation Account Allocation Committee (FAAC) distributions, petroleum profit tax, royalties, and dividends. These remittances form the backbone of federal and state government budgets, funding infrastructure development, social services, and debt servicing across Nigeria's three tiers of government.
NNPC's financial turnaround follows reforms initiated under the Petroleum Industry Act (PIA) of 2021, which transformed the corporation from a state enterprise to a limited liability company operating on commercial principles. The transition enabled improved transparency in financial reporting and reduced the burden of fuel subsidy payments that previously constrained profitability.
Cross River's Oil-Producing Status Reinstatement
In a parallel development affecting Nigeria's oil revenue distribution framework, the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) received the final report from the Federal Government's Inter-Agency Committee on Nigeria's Oil-Producing States, with Cross River State projected for re-listing as an oil-producing state, according to Vanguard News.
Cross River's reinstatement as an oil-producing state carries significant fiscal implications for revenue allocation under Nigeria's derivation formula. The Nigerian Constitution mandates that 13% of revenue generated from natural resources be returned to the states of origin, a provision that has made oil-producing states among the highest-earning sub-national entities in the federation.
The state lost its oil-producing status following the ceding of the Bakassi Peninsula to Cameroon in 2008, pursuant to an International Court of Justice ruling. The territory contained significant offshore oil deposits that previously qualified Cross River for derivation payments. The Inter-Agency Committee's recommendation suggests new production activities or re-evaluation of existing fields have met the threshold for oil-producing classification.
Implications for Revenue Distribution
Cross River's return to oil-producing status will trigger adjustments in monthly FAAC allocations, potentially reducing the share available to non-oil-producing states while increasing the state's monthly revenue by billions of naira. The state government will gain access to 13% derivation funds from oil production within its territorial waters, alongside increased allocations from the federation account.
The development occurs as Nigeria pursues production targets of 2 million barrels per day (bpd) following years of underperformance due to pipeline vandalism, theft, and underinvestment in aging infrastructure. Current production hovers around 1.5 million bpd, according to OPEC data, constraining government revenue despite elevated global oil prices.
NNPC's improved financial performance and Cross River's status change reflect broader efforts to optimize Nigeria's petroleum sector revenue generation. However, the country faces persistent challenges including security threats in the Niger Delta, aging infrastructure requiring capital expenditure exceeding $10 billion, and pressure to transition toward renewable energy sources.
The reinstatement process requires formal approval from the National Assembly and subsequent gazette publication before Cross River can begin receiving derivation payments. RMAFC will coordinate with the Office of the Accountant-General of the Federation to implement the revised allocation formula once legislative approval is secured.