Energy sector reforms—including the removal of fuel and electricity subsidies, as well as the implementation of the Petroleum Industry Act—are reshaping Nigeria’s energy landscape.
This transformation is evident in the financial performance of energy companies listed on the Nigerian Exchange (NGX), which, excluding Seplat Energy Plc, have reported a cumulative net profit of N470 billion over the past year.
This remarkable figure represents a nearly threefold increase from the N177.7 billion recorded in 2023, marking a historic milestone for the sector.
Data from eight energy companies operating across Nigeria’s upstream and downstream oil sectors, as well as the electricity sector, reveal a significant increase in revenue and profit margins.
This growth has been driven by recent sector reforms, including the removal of petroleum and electricity subsidies, which have led to higher fuel and electricity prices. Additionally, the implementation of the Petroleum Industry Act (PIA) has incentivized gas production, further shaping the industry’s financial performance.
The upstream players were the biggest players, with Aradel Plc contributing the highest net income in 2024. Aradel’s N247.8 billion net income for 2024, represented a 361 percent growth from the N53.7 billion recorded in 2023. It also represented a 1537 percent increase from the N15 billion net income recorded in 2022.
For other operating segments, the depreciation of the Naira was a major contributing factor to the increase in revenue. However, gas revenue grew as the group made investments into gas infrastructure, including a N3.2 billion capital expenditure on its gas infrastructure, particularly the Ogbele gas processing plant.
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These investments grew the group’s gas earnings to N28 billion, up from N10.2 billion in 2023, as the company leveraged key gas commercialisation provisions in the Petroleum Industry Act (PIA) 2021.
Transcorp Power posted a net profit of N80 billion in FY 2024, marking an impressive 165% increase from the N30 billion recorded in 2023. This surge in profitability is largely attributed to the partial removal of electricity subsidies in early 2024, which led to higher consumer electricity payments.
The reforms boosted the company’s revenue to N305.9 billion; however, unpaid electricity bills remained significant, with outstanding trade receivables rising to N298 billion by year-end, with N147 billion of the amount incurred in 2024 alone.
Fellow power generation company, Geregu Power’s net profits also hit N27.4 billion in 2024, marking a 71 percent growth from the N16.1 billion net profit recorded in 2023.
After nearly a decade of losses since 2014, Oando has now recorded two consecutive years of profitability. The company posted a net income of N60 billion in 2023, followed by N65 billion in 2024.
Having shifted its focus from downstream to predominantly upstream operations, Oando has successfully expanded its stake in Oil Mining Licenses, leveraging key provisions of the Petroleum Industry Act (PIA).
The PIA was able to provide clarity on disputes around overlapping licenses and unclear terms, providing legal certainty for buyers of existing OMLs.
Oil marketers—including TotalEnergies Marketing, Conoil, MRS Oil, and Eterna Plc—have experienced a significant surge in profits. Despite the traditionally low-margin nature of the business, the removal of fuel subsidies and the resulting increase in petroleum prices have driven strong financial gains among these companies.
TotalEnergies posted a net income of N27.8 billion, even as the company recorded a revenue of N1 trillion.
Conoil posted an N11.4 billion net income, which was 15 percent greater than the N9.9 billion recorded in 2023.
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