Oil, Gas Sector Posts N6.69trn In Revenue Amid Escalating Energy Prices

Nigeria’s oil and gas sector has experienced a seismic financial upturn, with six leading industry players amassing a staggering N6.69 trillion in revenue in 2024—an extraordinary 57 per cent surge from the N4.27 trillion recorded in the previous year.

This exponential growth underscores the far-reaching impact of the Federal Government’s (FG) sweeping sectoral reforms, which have reinvigorated the industry, attracting fresh investment and fostering operational efficiency.

The top-performing companies alongside Oando include TotalEnergies Marketing Nigeria Plc, MRS Oil Nigeria Plc, Aradel Holdings Plc, Eterna Plc, and Conoil Plc.

According to unaudited financial statements for the fiscal year ended December 31, 2024, these firms collectively declared a profit before tax of N440.09 billion—an astonishing 84 per cent jump from N239.01 billion in 2023.

Analysts attribute this robust performance to strategic pricing adjustments in Premium Motor Spirit (PMS), stable global oil prices, and the cumulative benefits of regulatory reforms.

A confluence of progressive policy measures—including the enactment of the Petroleum Industry Act (PIA), the deregulation of the downstream sector, and large-scale gas infrastructure expansion—has reshaped the sector, fostering a more competitive and investmentfriendly landscape.

Government’s push to enhance local participation while steering the industry toward cleaner energy solutions has further galvanised growth.

Oando Plc led the market resurgence, posting a record N4.12 trillion in revenue—a 45 per cent leap from N2.85 trillion in 2023.

TotalEnergies Marketing Nigeria also demonstrated remarkable financial resilience, reporting a revenue increase of 63.8 per cent to N1.04 trillion, up from N635.95 billion in the preceding year.

Oando’s Group Chief Executive, Wale Tinubu, attributed the firm’s robust earnings to increased crude oil output, favorable gas pricing, and the successful integration of NAOC Ltd., which bolstered production capacity to 103,206 barrels of oil equivalent per day (boepd).

Despite macroeconomic challenges, Oando’s profit after tax rose nine per cent to N65.5 billion.

Meanwhile, Aradel Holdings, a new entrant on the Nigerian Exchange (NGX), posted an unprecedented 163 per cent revenue growth, soaring to N581.02 billion in 2024 from N221.14 billion in 2023.

The company attributed this surge to heightened crude oil production, improved pipeline efficiency, and the expansion of its drilling operations.