NNPC’s N27.76 trillion operating expenses raise efficiency concerns
The Nigerian National Petroleum Company (NNPC) is facing scrutiny over its high operating expenses, which consumed over 80% of its revenue in 2025. Comparative analysis shows the company is significantly less efficient than global peers like Petrobras and Saudi Aramco.
Why it matters
High operational costs in state-owned oil companies can signal systemic inefficiencies that impact national economic stability and energy sector performance.
• 80% of N34.52 trillion revenue consumed by OpEx • Petrobras spends 18.3% of revenue on costs, Aramco 57.7%
Nigerian National Petroleum Company Limited (NNPC Ltd) incurred about N27.76 trillion in cost of sales, distribution expenses, and general and administrative expenses in 2025.
The amount, which puts the company ahead of its peers in operating cost, is about 80.4 per cent of the N34.52 trillion revenue reported by the group in the financial year.
The scale of the expenditure becomes more significant when placed against the financial performance of other major national oil companies.
NNPC’s N27.76 trillion operating cost translates to approximately $18.29 billion, using last year’s average exchange rate of N1,518 to the dollar, against revenue of about $22.74 billion.
By comparison, Brazil’s state-controlled Petrobras reported $89.2 billion in sales revenue and about $16.3 billion in operating costs in 2025.
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