Nigeria’s state-owned oil company recorded a major expansion of its balance sheet in 2024, driven by extensive investments aimed at reviving the country’s long-idle refining system and strengthening petroleum infrastructure.
The Nigerian National Petroleum Company Limited (NNPCL) reported that its total assets rose to N162 trillion for the 2024 financial year, reflecting a significant rise in the value of property, plant and equipment. The company’s PPE climbed to N104.5 trillion, up from N65.9 trillion in the previous year, following heavy spending on the rehabilitation of the Port Harcourt, Warri and Kaduna refineries, as well as upgrades to pipelines and storage facilities.
The aggressive investment is part of NNPCL’s plan to reduce Nigeria’s reliance on fuel imports, which reached an estimated N15.4 trillion in 2024. The company has spent the last two years pushing to restore domestic refining capacity after more than a decade of minimal output from government-owned refineries.
However, the expansion has come with rising financial obligations. NNPCL’s total liabilities increased by 60 percent to N123.3 trillion, driven by higher borrowings, lease payments and contract commitments. Provisions for decommissioning aging assets also rose to N14.8 trillion. In comparison, equity saw a modest rise to N38.9 trillion, supported largely by asset revaluations.
Despite the increase in assets, the company’s liquidity remains under pressure. Cash and cash equivalents grew slightly to N10.3 trillion, signaling the strain of financing multi-year capital projects amid slow recovery of receivables.
Analysts say the company is evolving into a highly capital-intensive enterprise, but warn that the long-term value of the investment depends on how efficiently the refineries operate once they come back online. NNPCL has not issued new timelines for full commercial production across its refinery network, leaving questions about future output levels and profitability.
Still, industry observers note that the asset growth reflects a wider strategic shift toward improving energy security and reducing exposure to international fuel price volatility.
On the earnings front, NNPCL reported a net profit of N5.4 trillion for 2024 on revenue of N45 trillion. When measured by profitability ratio, the company posted a 12 percent net profit margin—higher than global peers like Chevron and Eni, which recorded margins of 9 percent and 6 percent respectively.
Analysts say the strong margin highlights operational resilience, but caution that sustained performance will depend on the successful restart and efficient management of the newly refurbished refineries.
