The Nigerian National Petroleum Company Limited (NNPCL) recorded a significant decline in revenue for the month of June, a development tied to intensifying volatility in global oil markets. According to its latest Monthly Financial and Operations Report released on Monday, the company’s revenue dipped to ₦4.57 trillion in June — a sharp 23.9% fall from the ₦6 trillion posted in May.
This downturn is attributed to a combination of geopolitical uncertainties, declining Asian demand, and wavering commitments to production cuts by OPEC and its allies. Industry analysts believe these factors are contributing to unpredictable market behavior and putting downward pressure on prices.
Brent crude, the international benchmark, dropped 52 cents (0.75%) to trade at $68.69 per barrel as of 7:30 a.m. WAT on Tuesday. Similarly, U.S. West Texas Intermediate (WTI) crude fell by 51 cents (0.76%) to $66.69 per barrel. Notably, the August WTI contract is set to expire on Tuesday, with the September contract — which has now taken center stage in trading — dropping 54 cents (0.82%) to $65.41 a barrel.
Concerns over a deepening trade conflict between the United States and the European Union — both major crude consumers — have dampened investor sentiment. Market watchers fear that economic tensions between the two giants may suppress global fuel demand by slowing economic activity, particularly in energy-hungry manufacturing sectors.
Beyond revenue, NNPCL’s profitability also took a hit. The report noted a 14% drop in profit after tax, falling from ₦1.05 trillion in May to ₦905 billion in June. Analysts say the double-blow of lower crude prices and uncertain export volumes is likely to continue affecting the national oil giant’s earnings unless a market rebound materializes soon.
Experts are now calling on the federal government and energy stakeholders to intensify efforts at stabilizing Nigeria’s oil production and diversifying revenue streams, especially as the country navigates ongoing economic reforms under the Tinubu administration.
As the global oil market continues to face headwinds, the coming months will be crucial for NNPCL’s financial health — and by extension, Nigeria’s oil-dependent economy.