THE Nigerian National Petroleum Company (NNPC) Limited is celebrating a 2024 profit after tax (PAT) of $3.7 billion (N5.4 trillion), but its counterpart, Saudi Aramco, earned 29 times more at the end of last year.
Saudi Aramco earned $106.2 billion in profit at the end of the 2024 financial year, down from $121.3 billion in 2023. On the other hand, NNPC’s earnings per share stood at N27.07, marking a 64 percent year-on-year growth. The results, NNPC said, underscored a year of strong operational delivery.
NNPC’s bottom-line represents a 64 percent year-on-year growth from the margins in 2023, meaning there has been an improvement in operational efficiency in the company.
However, compared with Saudi Aramco, NNPC is still comparatively inefficient. Saudi’s national oil company projects total dividends for 2025 to sit around $85.4 billion, which is still a significant decline from 2024′s total of $124.2 billion. The Federal Accounts Allocation Committee revealed in July 2025 that the Nigerian NNPC currently owed the Nigerian government a staggering N6.57 trillion as of May 2025. FAAC said the bulk of the debt – about N3.89 trilion – represented unpaid royalties due to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). However, NNPC Group Mananging Director, Mr Bayo Ojulari, said the national oil company remitted N15.982 trillion ($11 billion) to the Nigerian government in taxes, royalties, and dividends in 2024. It was not stated whether it was a repayment for the debt owed or not.
NNPC vs Aramco
Saudi Aramco’s efficiency is visible in its own refineries. It has a cluster of refineries which include: Jazan Refinery and Terminal Projects (JRTP, 400,000 bbl/d plus 64,000 m3/d), Jeddah Refinery (78,000 bbl/d plus 12,400 m3/d)), Ras Tanura Refinery (550,000 bbl/d + 87,000 m3/d), Saudi Aramco Jubail Refinery Co. (SASREF), Jubail (305,000 bbl/d (48,500 m3/d)), Riyadh Refinery (126,000 bbl/d + 20,000 m3/d), and Yanbu Refinery (245,000 bbl/d + 39,000 m3/d).
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It has domestic refining ventures, which include: the Saudi Aramco Mobil Refinery Co. Ltd. (SAMREF), Yanbu (400,000 bbl/d + 64,000 m3/d), Rabigh (400,000 bbl/d + 64,000 m3/d), Saudi Aramco Base Oil Co. (Luberef), Saudi Aramco Total Refining and Petrochemical Co. (SATORP), Jubai] (400,000 bbl/d + 64,000 m3/d), Yanbu Aramco Sinopec Refinery (YASREF), and Yanbu (400,000 bbl/d + 64,000 m3/d).
Also, it has a network of international refining ventures, including Reliance Industries, (no investment) India, Fujian Refining and Petrochemical Co. (FRPC), People’s Republic of China, Sinopec SenMei (Fujian) Petroleum Co. Ltd. (SSPC), People’s Republic of China, Motiva Enterprises LLC, United States, Port Arthur Texas (635,000 bbl/d + 101,000 m3/d), Showa Shell, Japan (445,000 bbl/d + 70,700 m3/d), S-Oil, Republic of Korea (669,000 bbl/d + 106,400 m3/d), and Saudi Refining Inc., United States.
Saudi Aramco once had exploration projects in Pakistan, including a $10 billion refinery project in Gwandar.
In 2022, it had a joint venture with North Huajin Chemical Industries targeted at creating a new company called Huajin Aramco Petrochemical Company, which would develop a 300,000 bpd refining facility with ethylene steam cracking capabilities.
However, NNPC has only four refineries in Port Harcourt, Warri and Kaduna, but none is currrently producing petrol after former Group Managing Director, Mr Mele Kyari, spent nearly $3 billion on their rehabilitation.
Saudi Aramco has achieved low production cost, which continues to enable it to produce oil at a very low cost. It has pumped billions of dollars to expand output and achieved economies of scale in oil production. Its natural gas production capacity, with total gas production, including natural gas and ethane, reached 10.67 billion cubic feet per day, up from 10.61 billion cubic feet per day in 2022. In addition, chemical production’s production also brightened, reaching 59.6 million tonnes annually in 2023, compared to 56.3 million tonnes in 2022. Refining capacity remains at 4.1 million barrels per day.
But a report by the Nigeria Extractive Industries Transparency Initiative (NEITI) said the NNPC’s crude production cost ranges between $25 and $48 per barrel, far exceeding the OPEC+ average of around $10 per barrel. Hence, while Saudi Aramdo prides in efficiency, NNPC struggles in high cost of production, political influence, poory maintained refineries, poorly structured joint ventures, corruption and employment of cronies.
