How NIPCO Survived 2025 Downstream Headwinds and Delivered Impressive Results
CHIGOZIE AMADI
NIPCO Plc has explained how it survived the turbulence in the downstream sector in 2025 to record an impressive results
The Managing Director, NIPCO, Suresh Kumar, said strategic foresight, diversification into gas and disciplined cost management enabled it to survive and deliver impressive results despite severe headwinds that rocked Nigeria’s downstream sector in 2025.
Speaking at the company’s 22nd Annual General Meeting at the Abuja Continental Hotel, Suresh said the year was defined by full deregulation, market-based petrol pricing, supply chain uncertainty and the entry of Dangote Refinery which reshaped competition across the industry.
According to him., “2025 tested the resilience of every operator. margins were squeezed, pricing became volatile, and only companies with strong fundamentals and clear strategy could stay afloat.
For NIPCO, he noted, it was about adapting quickly and investing for the long term.
Suresh disclosed that while white oil margins came under pressure, NIPCO cushioned the impact by expanding its retail network to over 400 branded stations nationwide and scaling gas infrastructure as alternative revenue streams.
He said the company’s LPG division leveraged 19,500 metric tonnes of storage and 10 loading bays to deliver over 4,000 tonnes daily, meeting rising household demand as consumers shifted from petrol to cooking gas. In the CNG space,
Suresh stated that NIPCO Gas Limited closed 2025 with 25 Auto CNG stations and over 8,000 converted vehicles, positioning the company as Nigeria’s pioneer in gas mobility.
He added that 20 more CNG stations are under construction and another 35 are being rolled out with NNPC Gas Marketing Ltd under the Presidential CNG Initiative to serve more than 200,000 vehicles daily.
On the financial front, Suresh said NIPCO ended the year with a turnover of N1.98 trillion and Profit Before Tax and Profit After Tax of N12 billion, a performance he attributed to prudent cash management and a deliberate pivot away from over-dependence on petrol.
The Board also recommended a N1 billion dividend, translating to N8.00 per share, which was unanimously approved by shareholders, serving as a good reward for their investment.
Siresh further revealed that NIPCO made a bold £28.7 million investment in Savannah Energy Plc to secure long-term gas supply, with the stake now approaching 25%, and expanded into hospitality through 22 Hospitality Ltd’s acquisition of a majority stake in Capital Hotels Plc.
He noted that these moves were designed to de-risk the business and align with the Federal Government’s “Decade of Gas” agenda.
“The downstream sector in 2025 was unforgiving, but we chose to see opportunity in disruption by investing in gas, retail reach, and new sectors like hospitality.
” We protected value today and built the foundation for stronger growth tomorrow. The lessons of 2025 have made NIPCO more resilient and better prepared for 2026,” he concluded
