NNPC Group’s tax, royalty payments rise 150% to N14.7 trillion in 2025

NNPC Group’s income tax and royalty payments rose 150% to N14.71 trillion in 2025 from N5.88 trillion in 2024.

This is according to its 2025 Audited Financial Statements released on Wednesday.

The increase was driven mainly by royalties, which climbed to N11.56 trillion from N2.83 trillion during the period.

Income tax payments also increased, rising to N3.15 trillion from N3.06 trillion.

The latest figures come as NNPC Group reported stronger profitability in 2025, with profit after tax rising 33% to N7.2 trillion despite a 24% decline in revenue.

NNPC royalty payments drive increase

Royalties accounted for the largest share of NNPC Group’s payments to government in 2025, increasing by more than four times from the previous year.

• Group royalty payments rose to N11.56 trillion in 2025 from N2.83 trillion in 2024.
• Income tax paid increased to N3.15 trillion from N3.06 trillion.
• Employee benefits paid rose to N171.47 billion from N73.65 billion.
• Dividend payments increased sharply to N4 trillion from N243.5 billion.
• At the company level, NNPC Limited paid N8.49 trillion in royalties in 2025, compared with N1.38 trillion in 2024, while income tax payments rose to N2.59 trillion from N1.88 trillion.

The figures show the significant increase in royalty payments was the main contributor to the rise in NNPC Group’s tax and royalty contributions during the year.

NNPC increases investment spending

The audited accounts also show higher spending on oil and gas properties as the NNPC Group continued to invest in its operations.

• Purchases of oil and gas properties rose to N6.46 trillion in 2025 from N5.62 trillion in 2024.
• Purchases of other property, plant and equipment increased to N3 trillion from N2.60 trillion.
• Principal lease payments rose to N133.19 billion from N122.49 billion.
• Interest paid on contract liabilities increased to N847.58 billion from N272.04 billion.

By comparison, acquisition of intangible assets fell to N78.97 billion from N692.71 billion, while investments in joint ventures and associates declined to N2.39 billion from N6.99 billion.

The company-level figures also show NNPC Limited spent N5.37 trillion on oil and gas properties in 2025, up from N2.26 trillion in 2024.

NNPC profit rises despite revenue decline

Nairametrics earlier reported that NNPC Limited’s profit after tax increased 33% to N7.2 trillion in 2025 from N5.4 trillion in 2024, even as revenue declined 24% to N34.5 trillion.

• The company’s 2024 results had shown profit after tax of N5.4 trillion from revenue of N45.1 trillion for the year.
• NNPC Limited also generated N29.21 trillion from crude oil sales in 2024, more than double the N14.07 trillion recorded from the same stream in 2023.
• The latest financial statements therefore place the sharp increase in tax and royalty payments alongside higher profitability and continued spending on oil and gas assets.

In April, the Nigeria Revenue Service officially took over the collection of mineral royalties from mining operators across the country following the implementation of the Nigeria Tax Laws 2025.