NNPC Discloses N16tn Payment in Taxes, Royalties to Govt in 2024

The Nigerian National Petroleum Company Limited (NNPC Ltd) announced it remitted a historic N15.982 trillion to the Federation Account in 2024, marking an unprecedented financial contribution to the nation’s development.

The disclosure was made in the company’s just-released Annual Financial Report, which detailed a year of record-breaking performance across its operational spectrum.

In a statement to shareholders, board members, and partners, the Group Chief Executive Officer, Mr. Bayo Ojulari, underscored the significance of the remittance, which comprises taxes, royalties, and dividends. This figure underscores the state-owned oil firm’s pivotal role as the primary revenue earner for Africa’s most populous nation.

Strategic Shift and Sustainable Procurement

The 2024 report painted a picture of a company in the midst of a strategic transformation. Beyond its traditional role, NNPC Ltd reported a massive N4.463 trillion expenditure on ‘sustainable procurement.’ This approach involves the acquisition of goods, services, and works in a manner that not only seeks value for money but also actively reduces environmental damage, supports social well-being, and strengthens economic resilience.

This focus on sustainability was further evidenced in its human capital and diversity metrics. The company revealed that women now occupy 20% of all senior management roles, a step towards greater gender inclusivity at the highest decision-making levels. The company’s workforce now exceeds 5,400 employees.

Upstream Resurgence and Production Gains

A key driver of the financial success was a significant turnaround in the country’s upstream oil and gas production. Mr. Ojulari highlighted the establishment of a ‘Production War Room’ as a critical intervention. This initiative enabled the company to systematically overcome production bottlenecks, leading to a remarkable 18% increase in national crude and condensate output.

The production figures climbed from a low monthly average of 1.44 million barrels per day (bpd) in March to a peak of 1.70 million bpd by November 2024. This momentum has continued into 2025, with a year-to-date average of 1.725 million bpd, reported as the highest production level in five years.

Specific upstream milestones for the year included achieving first oil from the OML 13 Utapate and OML 85 Madu fields. Furthermore, the company took Final Investment Decisions (FIDs) on two major projects: the $550 million Ubeta project in OML 58 and the $5 billion Bonga North project in OML 118. These decisions are poised to unlock significant future gas and oil volumes for the country.

Diversification and Cleaner Energy Initiatives

Demonstrating a strategic pivot towards cleaner energy, NNPC Ltd made a decisive commercial entry into the Compressed Natural Gas (CNG) market. The company commissioned 12 CNG stations across Abuja and Lagos and operationalised the NGML/NIPCO mother station project. With a target of establishing 226 CNG stations by 2030, the move is part of a broader plan to provide cheaper and more environmentally friendly fuel alternatives for Nigerians.

The company also launched methane reduction initiatives and prioritised emissions abatement in its upstream operations, aligning with global climate goals. In the power sector, NNPC expanded its installed capacity by 2.8% and reported steady progress on the NLNG Train 7 project.

Corporate Governance and Social Responsibility

The annual report also emphasised strengthened governance and transparency. The company commercialised its ‘Bill of Lading’ process, generating N210 million in revenue, and established a ‘Vetting Desk’ that approved 278 vessels, ensuring rigorous operational standards.

On the social front, NNPC’s Corporate Social Responsibility (CSR) initiatives reached over 430,000 National Youth Service Corps (NYSC) members with financial literacy training. The company distributed 15,000 STEM textbooks to support education and provided cancer screening support to 3,400 citizens. Its inclusive recruitment drive attracted 45,000 applicants, ensuring a transparent and competitive talent acquisition process.

Investment in employee development remained a priority, with world-class training programmes conducted at prestigious institutions like Harvard, Stanford, and the Lagos Business School. The company affirmed that promotions were strictly merit-based.