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NNPC sustains crude supply to Dangote, improves pipeline availability – Ojulari – EnviroNews
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Group Chief Executive Officer, Nigerian National Petroleum Company Limited (NNPC Ltd.), Mr Bayo Ojulari, says the company is sustaining crude oil supply to Dangote Refinery under the approved naira-for-crude arrangement.
Ojulari said this on Tuesday, September 29, 2026, in Abuja at a press briefing on the company’s 2025 Audited Financial Statements, after its Annual General Meeting.
He said NNPC was supplying a specified number of crude cargoes to Dangote Refinery in Naira, while additional crude volumes were supplied in dollars.
He said that the dollar-denominated transactions were necessary because most of NNPC’s financial obligations, including payments to drilling contractors, project contractors and operators, were in dollars.
“Most of our commitments are in dollars, so there is no point receiving Naira and then going to buy dollars to meet those obligations.
“We have a commitment for supplying crude in Naira for a specific number of cargoes, typically. But also, the extra crude that are available, we only supply in dollar,” he said.
Ojulari said the company would continue to honour the Federal Government-approved Naira-for-crude arrangement while supplying additional available crude volumes in dollars.
On crude theft and pipeline security, he said the combination of community-based surveillance, intervention and security agencies had significantly improved the availability of major crude oil pipelines.
He said pipeline availability, particularly on major export routes, had improved substantially from levels recorded in early 2024, when some facilities operated at less than 10 per cent of producers’ reported output.
According to him, some producers are now reporting that they are able to deliver virtually all their production to terminals, indicating improved reliability across major pipeline networks.
Ojulari said the reconciliation factor between crude produced by operators and volumes accounted for at terminals had also improved to the 90 per cent range, compared with between 10 per cent and 20 per cent previously.
He, however, said that challenges remained on smaller internal pipelines and well-heads, particularly those located across difficult terrains.
The NNPC GCEO said the company was deploying technologies, including fibre optics and high-technology well-head cages, to detect intruders and improve response to crude theft and pipeline breaches.
He said while detection had improved significantly, the speed of response remained an area requiring further attention, particularly for facilities located in remote areas.
Ojulari said NNPC was therefore shifting greater attention to smaller pipeline networks and thousands of well-heads across land, swamp, seasonal swamp and shallow offshore terrains.
“We are looking at what additional technology we can put in place to support our operations in those areas,” he said.
Meanwhile, the NNPC recorded N7.2 trillion Profit After Tax (PAT) in 2025, a 33 per cent increase from N5.4 trillion.
Mr Ojulari, who disclosed this at media briefing after the company’s AGM and second Earnings Call, said that revenue declined to N34.5 trillion from N45.1 trillion in 2024.
Ojulari attributed the 24 per cent revenue decline to lower crude oil prices and reduced product volumes following market deregulation.
He said earnings per share rose to N35.90 from N27.07, while return on equity improved by 200 basis points to 16 per cent.
The company’s declared dividend increased by 35 per cent to N5.8 trillion, while taxes, royalties and other government remittances rose 39 per cent to N22.3 trillion.
“Stronger earnings in spite of this pressure demonstrate the resilience of NNPC Limited’s operations,” Ojulari said.
He said profit grew because NNPC had improved its operations and maintained discipline across its businesses.
Ojulari said crude oil and condensate production reached a five-year peak of 1.77 million barrels per day.
He added that gas supply reached a three-year high of 7.2 billion standard cubic feet per day.
“Stronger performance gives NNPC Limited more capacity to invest, contribute to public revenue and strengthen Nigeria’s energy security,” he said.
On infrastructure, Ojulari said the mainline of the Ajaokuta-Kaduna-Kano gas pipeline had been completed.
He said work was ongoing on tie-ins to delivery points, beginning with Abuja, followed by Ajaokuta and Kaduna.
According to him, the next milestone is to commence gas flow through the pipeline to industries and power plants.
Ojulari said the company completed the Obiafu-Obrikom-Oben (OB3) gas pipeline in 2026 after several years of challenges.
On the refineries, he said prospective partners under NNPC’s technical equity partnership model had conducted a three-month onsite review.
He said more than 34 engineers participated in the review, adding that NNPC was now concluding the report.
Ojulari said the company was targeting self-sustaining and profitable refineries, with a pathway expected to be defined soon.
He reaffirmed NNPC’s target of producing two million barrels of crude oil daily by 2027 and three million barrels by 2030.
He said gas production targets were 10 billion cubic feet per day by 2027 and 12 billion by 2030.
“NNPC plans to mobilise over 60 billion dollars of investment across the energy value chain,” he added.
Ojulari said more than 1,000 newly recruited professionals joined NNPC in 2025 under its Talent to Value programme.
He said the recruits completed a one-year internship and training programme before being deployed across the company.
By Emmanuella Anokam
