NNPC Reports Historic Profit of N2.548 Trillion, Highest in 45 Years
The Nigerian National Petroleum Company Limited (NNPCL) has reported its highest profit in 45 years, achieving a remarkable N2.548 trillion profit for the fiscal year 2022. This financial milestone, outlined in the company’s 2022 Financial Performance Report released online, marks a significant achievement for the national oil company since its establishment in 1977.
The report provides a breakdown of the company’s financial performance over recent years. It reveals that the company experienced losses amounting to N803 billion in 2018, which increased to N1.7 billion in 2019. However, a turnaround came in 2020, with a profit of N287 billion, referred to as the ‘Turning Point.’ This positive trajectory continued in 2021, with a profit of N674.1 billion, termed ‘Assurance,’ leading to the substantial profit of N2.548 trillion in 2022.
During a Senate Committee on Finance hearing to defend the company’s 2024 budget, the Chief Executive Officer of NNPC Ltd, Mele Kyari, announced that in October alone, the company remitted N4.5 trillion as revenue to the federation account following the removal of the subsidy earlier that year.
Despite these impressive financial gains, the NNPCL is yet to undergo an independent financial audit, a demand voiced by many industry stakeholders.
Challenges in the form of oil theft persist, hindering the sector’s growth and revenue potential. Recent reports highlighted the discovery and destruction of 52 illegal refineries in Abia, Imo, Rivers, and Bayelsa states, along with 32 illegal connections in the Niger Delta. Additionally, between December 30, 2023, and January 5, 2024, NNPC Ltd recorded 157 incidents of crude oil theft from seven sources and made 17 arrests. However, the company remains committed to eradicating this issue.
It is worth noting that the NNPCL has faced criticism for its lack of transparency regarding its financial performance. Although it disclosed its financials for the fourth consecutive year in 2021, this transparency has been inconsistent in the company’s history.
Looking ahead, the NNPCL forecasted a further increase in revenue to N4.5 trillion by the end of 2023, attributing this growth to the commencement of operations at the Port Harcourt Refining Company.
Nairametrics