Article summary
- NNPCL has clarified its 2021 profit margin. It is N674 billion and not N687 trillion as mentioned during a June 1, 2023, interview on Arise Television.
- The company had already made the announcement of a N674 billion profit margin in October 2022.
- In October 2022, NNPCL said it had progressed to a new performance level, from 287 billion Naira profit in 2020 to 674 billion Naira profit after tax in 2021.
The Nigerian National Petroleum Company Limited (NNPCL) has set the record straight regarding its 2021 profit margin, following recent confusion.
In an official statement released on June 8, NNPCL’s Chief Corporate Communications Officer, Garba Deen Muhammad, confirmed that the company’s profit after tax for the year amounted to a substantial N674 billion.
The statement aimed to provide clarity and rectify any misconceptions surrounding the earlier reported figures, ensuring an accurate representation of NNPCL’s financial performance.
The statement clarified the error as follows:
- “On Thursday, June 1, 2023, the Group Chief Executive Officer (GCEO) of NNPC Limited, Mr. Mele Kyari, OFR, appeared on Arise TV’s “The Morning Show”. Among the issues the GCEO discussed was the 2021 profit margin.
- “Inadvertently, N687 trillion was mentioned as the company’s Profit after Tax figure as against N674 billion contained in the 2021 Annual Financial Statement. The accurate Profit after Tax figure for the Year 2021, N674 billion, was communicated to the public via our official Twitter account on 05/10/2022.
Backstory
On October 5, 2022, Mele Kyari provided the following insights during a press conference:
- “In September 2021, Mr. President graciously approved the publication of the 2020 NNPC Group Audited Financial Statement, in which NNPC declared a profit after tax of 287 billion Naira for the first time in its 44 years. Despite our challenging operating environment, we strongly believe that NNPC has the potential to sustainably deliver better value to its esteemed shareholders.
- “Today, I am happy to announce that the Board of NNPC Limited has approved 2021 audited financial statements, and NNPC has progressed to a new performance level, from 287 billion Naira profit in 2020 to 674 billion Naira profit after tax in 2021, climbing higher by 134.8% YoY profit growth.
- “The Group Financial position recorded an increase in Total Assets from N15.86trillion in 2020 to N16.27triillion in 2021, while our Total Liabilities decreased by 8.3% from N14.68trillion in 2020 to N13,46trillion in 2021. Our shareholder’s fund position grew to N2.8ltrillion, representing 144% year-on-year growth.
- “The performance would have been greater if the operations in the year under review were free from incessant vandalism, crude oil, and product theft among others.”
What you should know
- In July 2022, Mele Kyari told the press in Abuja, that the NNPCL plans to go public by 2023. He said: “We are convinced that by the middle of next year, this company will be initial public offering (IPO) ready, which means that you have the system, processes, and a company that is accountable to its stakeholders and shareholders.”
