President Muhammadu Buhari, who doubles as the substantive Minister of Petroleum Resources, has announced that the state-owned oil company, the Nigerian National Petroleum Corporation (NNPC), posted a Profit after Tax of N287 billion for the year 2020.
The declaration by the president was in fulfilment of an earlier pledge by the Federal Government to publicly announce the financial position of the NNPC, according to the News Agency of Nigeria.
According to a statement issued by the Special Adviser to the President on Media and Publicity, Femi Adesina, on Thursday in Abuja, the president who made the declaration, noted that the net profit was the first in the 44-year history of the establishment
What the President is saying in the statement
According to Adesina, the president said, “I am pleased to announce the declaration of Profit after Tax of Two Hundred and Eighty-Seven Billion Naira (N287 billion) in Year 2020 by the Nigerian National Petroleum Corporation.
”This is sequel to the completion of the statutory Annual Audit exercise for Year 2020. The NNPC losses were reduced from N803 billion in year 2018 to N1.7 billion in year 2019 and the eventual declaration of Net Profit in year 2020 for the first time in its 44-year history.
“This development is consistent with this administration’s commitment to ensuring prudent management of resources and maximization of value for the Nigerian people from their natural resources.
“I have further directed the Nigerian National Petroleum Corporation to timely publish the Audited Financial statements in line with the requirements of the law and as follow up to our commitment to ensuring transparency and accountability by public institutions.
“I congratulate the Board, Management and Staff of the Corporation and look forward to greater value creation for the Nigerian people.’’
What you should know
- The announcement of the profit is coming about a week after the Federal Government said that the NNPC is set to turn to a full-fledged commercial entity as it will become a limited liability company within the next 6 months.
- This is to make it more efficient, accountable, profitable and run according to the international best practices.
- This follows the signing of the Petroleum Industry Bill (PIB) into law by President Muhammadu Buhari on August 16, 2021, after it had been passed by the 2 chambers of the National Assembly in July.