NNPC Limited announces N502bn profit and drops petrol price below N800
It is no secret that the cost of living in Nigeria has been biting hard lately, with the price of fuel being the chief driver of inflation in our markets and motor parks. However, the Nigerian National Petroleum Company Limited has decided to turn the tide as we enter the new year.
In a move that feels like a breath of fresh air for millions of Nigerians, the national oil company has officially announced a massive profit of N502 billion for the 2024 financial year. More importantly for the man on the street, the company has also followed this up with a significant reduction in the pump price of petrol, bringing it down to below N800 per litre across its retail outlets.
New year relief as NNPC slashes petrol pump price
For months, Nigerians have been checking the price boards at filling stations with a mix of anxiety and hope. The news that petrol is now selling for less than N800 per litre is the kind of palliative that actually touches the pocket. Before now, the high cost of Premium Motor Spirit had pushed transport fares to the ceiling, making it difficult for many to commute to work or move goods from the farms to the city.
This price cut is not just a random gesture; it represents a strategic effort to stabilize the energy market. As an editor watching these trends, I see this as a necessary intervention to cool down the overheated economy and give the average citizen some room to breathe.
Breaking down the N502bn profit milestone
While the lower fuel price is what everyone is talking about at the bus stops, the financial health of NNPC Limited is the real backbone of this story. Posting a profit of N502 billion is a major milestone for a company that was once seen as a loss making government agency.
This transition into a fully commercial entity under the Petroleum Industry Act is finally yielding fruits. The profit shows that the company has improved its operational efficiency and reduced the waste that used to characterize its old structure. For the first time in a long time, we are seeing a national oil company that is not just spending money but actually making it for the federation.
The factors behind the sudden fuel price drop
Many are asking how this reduction became possible when global oil prices are still fluctuating. The answer lies in a combination of factors, including the increased capacity of local refining and better supply chain management. With the domestic refining sector finally kicking into high gear, the pressure on our foreign exchange for fuel imports has started to ease.
NNPC has been able to leverage its strategic reserves and improved logistics to ensure that the cost of bringing fuel to the nozzle is significantly reduced. This is a clear case of what happens when policy meets local productivity, and it proves that we do not have to be at the mercy of international market shocks forever.
What this means for the Nigerian economy in 2026
As we look ahead into the rest of 2026, the implications of this petrol price reduction are massive. When fuel is cheaper, the cost of moving food items like garri, beans, and onions drops, which should eventually lead to a decrease in food inflation.
It also means that small business owners who rely on generators for their daily “hustle” will spend less on overheads, allowing them to keep their doors open. This move by NNPC Limited has set a benchmark for the year, and if the momentum is sustained, we might be looking at a much more stable and pocket friendly economy for all Nigerians.
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