The Nigerian National Petroleum Corporation (NNPC), has stated that it reduced its loss by 99.7% from N803 billion in 2018 to N1.7 billion in 2019.
— NNPC Group (@NNPCgroup) October 15, 2020
Barely five months after releasing its 2018 Audited Financial Statement (AFS), the company has released its 2019 AFS, stating that performance improved compared with the same period last year.
The CFO of the company noted that general administrative expenses dipped by 22% from N894 billion in 2018 to N696 billion in 2019.
According to the spokesman of the company – Mr. Umar Ajiya, a majority of the company’s subsidiaries also recorded improved performance. For example, it was reported that the Nigerian Petroleum Development Company Limited (NPDC) recorded N479 billion profit in 2019, compared to N179 billion in 2019. This represents a 167% increase.
What they are saying
Mr. Ajiya quoting Dr. Kennie Obateru, the CFO of the company – submitted that the 2019 AFS was concluded less than five months from the release of the 2018 AFS. He also submitted that the results will be published on the company’s website, in line with the management’s transparency commitments and the principles of the Extractive Industries Transparency Initiative (EITI), for which it is a partner.
What you should Know
The Nigerian National Petroleum Corporation (NNPC) is the state oil corporation, established on the 1st of April 1977. In addition to its exploration activities, the Corporation was given powers and operational interests in refining petrochemicals and products transportation, as well as marketing.
Between 1978 and 1989, NNPC constructed refineries in Warri, Kaduna, and Port Harcourt and took over the 35,000-barrel per day Shell Refinery, established in Port Harcourt in 1965.
In 1988, the NNPC was commercialized into 12 strategic business units, covering the entire spectrum of oil industry operations like exploration and production, gas development, refining, distribution, petrochemicals, engineering, and commercial investments. Currently, the subsidiary companies include:
- Nigerian Petroleum Development Company (NPDC)
- The Nigerian Gas Company (NGC)
- The Products and Pipelines Marketing Company (PPMC)
- Integrated Data Services Limited (IDSL)
- National Engineering and Technical Company Limited (NETCO)
- Hydrocarbon Services Nigeria Limited (HYSON)
- Warri Refinery and Petrochemical Co. Limited (WRPC)
- Kaduna Refinery and Petrochemical Co. Limited (KRPC)
- Port Harcourt Refining Co. Limited (PHRC)
- NNPC Retail
- Duke Oil
In addition to these subsidiaries, the industry is also regulated by the Department of Petroleum Resources (DPR) – a department within the Ministry of Petroleum Resources. The DPR ensures compliance with industry regulations; processes applications for licenses, leases, and permits; establishes and enforces environmental regulations. The DPR and NAPIMS play a very crucial role in the day to day activities throughout the industry.