Nigeria’s Oil and Gas Sector Experiences a Resurgence in June 2025
The Nigerian National Petroleum Company Limited (NNPC) reported a significant surge in revenue for June 2025, reaching an impressive N4.571 trillion. This positive trend reflects the ongoing recovery in the nation’s oil and gas sector, with both crude oil and natural gas production witnessing substantial increases. This robust performance underscores the NNPC’s vital role in national revenue generation, contributing significantly to the country’s economic stability. Increased production, coupled with improved operational efficiency across the value chain, has positioned the NNPC as a key driver of Nigeria’s economic growth.
The June 2025 data reveals a noteworthy upswing in upstream activities. Crude oil and condensate production reached 1.68 million barrels per day (mbpd), the highest level recorded since January of that year. This signifies a consistent rebound in production, exceeding the figures from May (1.63 mbpd) and April (1.61 mbpd). Of the total production, crude oil constituted 1.42 mbpd, while condensate contributed 0.26 mbpd. Although crude oil and condensate sales experienced a slight dip in June, reaching 21.68 million barrels compared to 24.77 million barrels in May, the overall production figures remain encouraging. February, however, still holds the record for the highest sales volume in 2025 at 25.31 million barrels.
The natural gas sector mirrored the positive trajectory of crude oil, with production climbing to 7.581 billion standard cubic feet per day (scf/d) in June, surpassing the May figure of 7.352 bn scf/d. This upward trend is a continuation of the recovery observed since February, when production stood at 6.615 bn scf/d. This sustained growth in gas output indicates a revitalization of the Nigerian gas sector, potentially positioning the country for increased domestic utilization and export opportunities. Daily gas sales also saw an increase, reaching 4.742 bn scf/d in June, up from 4.698 bn scf/d in May.
The NNPC’s financial performance in June 2025 was equally impressive, with a reported profit after tax of N905 billion. Furthermore, cumulative statutory payments to the Federation from January to May reached N6.961 trillion, demonstrating the NNPC’s significant contribution to the national treasury. This financial strength positions the company for future investments and reinforces its role as a cornerstone of the Nigerian economy.
Several factors underpin the positive performance observed in the oil and gas sector. Improved performance of critical pipeline infrastructure, including advancements in key projects like the Ajaokuta-Kaduna-Kano (AKK) pipeline, has played a crucial role. The AKK pipeline, now 83% complete, is a major infrastructure project with the potential to transform gas distribution across the country. The successful completion of the River Niger crossing, a significant engineering feat, marks a major de-risking milestone for the project. Furthermore, increased pipeline availability, reaching 97% across the upstream network, reflects a reduction in downtime due to vandalism and sabotage, further boosting production and distribution.
While the report highlights notable improvements in the upstream sector and gas production, challenges persist in downstream operations. Petrol availability at NNPC Retail Limited stations averaged 71%, indicating ongoing distribution bottlenecks. However, internal performance data reveals variations in fuel availability across different regions, with stronger supply observed in the North Central, South-South, and North West zones. The OB3 pipeline project, nearing completion at 96%, promises to enhance distribution capacity and address these challenges. Additionally, ongoing review work at the Port Harcourt, Warri, and Kaduna refineries aims to bolster domestic refining capacity, reducing reliance on imported refined products.
Beyond its core operations in the oil and gas sector, the NNPC is also actively engaged in social development initiatives through the NNPC Foundation. In June 2025, the Foundation’s Financial Literacy Programme reached 67,544 members of the National Youth Service Corps (NYSC), contributing to the development of financial management skills among young Nigerians. This initiative, which has trained a total of 870,383 corps members nationwide, underscores the NNPC’s commitment to empowering the next generation and fostering broader societal development. The program’s aim is to equip young Nigerians with essential financial skills, promoting financial inclusion and economic empowerment.
