The Nigerian National Petroleum Company Limited has just saved $3.4 billion through an aggressive contract restructuring and optimisation programme. Bayo Ojulari, Group Chief Executive Officer of NNPC Limited, unveiled this achievement while presenting the company’s one-year performance scorecard at the 25th NOG Energy Week in Abuja. This significant cost-cutting achievement is the centrepiece of NNPC’s performance report, which also shows improvements in crude oil production, gas output, government revenue, export terminal efficiency, and operational transparency.
According to Ojulari, the cost savings were achieved without slowing operations, demonstrating that improving efficiency rather than increasing expenditure remains central to the company’s strategy for delivering value to the Federation and investors. He said the contract optimisation programme had enabled the company to eliminate waste, improve commercial discipline, and strengthen the competitiveness of Nigeria’s petroleum industry.
NNPC recorded a six percent increase in crude oil production to 569.7 million barrels year-on-year, while gas production rose by 8.1 percent to 2,576 billion standard cubic feet. Ojulari also announced that NNPC maintained 100 percent compliance with all Joint Venture cash-call obligations throughout 2025 and into June 2026. This demonstrates the company’s commitment to its Joint Venture partners and the nation's economy.
NNPC's boss, Ojulari, revealed that Nigeria's crude oil production had risen to about 1.71 million barrels per day, the highest level recorded in five years. He disclosed that the company's long-term target is to raise crude oil production to two million barrels per day by 2027 and three million barrels daily by 2030.
Ojulari attributed the improvements in production largely to enhanced operational stability and infrastructure recovery across the country's oil-producing assets. He disclosed that Nigeria's crude export terminals had recorded an average recovery factor of 98 percent between April 2025 and May 2026, compared to operational lows of barely one percent at the Bonny Oil and Gas Terminal in June 2022.
“Our transformation is yielding measurable outcomes. We have achieved a six percent increase in crude oil production, an 8.1 percent increase in gas production, delivered N19.5tn in government take to the Federation, representing a 21.8 percent increase, and successfully reduced costs by $3.4bn through contract restructuring and optimisation. These are not just numbers. They demonstrate that operational discipline, commercial efficiency, and strategic reforms can simultaneously increase production, reduce costs, and improve returns to the nation,” he said.
Ojulari further noted that the company’s contribution to government revenue increased by 21.8 percent to N19.5tn over the review period. These achievements are a testament to the company's commitment to its core mandate and its strategic direction under Ojulari's leadership.