The Nigerian National Petroleum Company Limited (NNPCL) has announced its highest profit in 45 years, recording N2.548 trillion for the year 2022.
The national oil company, in its 2022 Financial Performance Report published online, emphasized that the profit recorded was the highest since its founding in 1977.
Breakdown of the Financial Report
According to the financial report, losses amounted to N803 billion in 2018 and increased to N1.7 billion in 2019.
In 2020, the report highlights a profit of N287 billion, denoted as the ‘Turning Point,’ and in 2021, the company’s profit grew to N674.1 billion, named ‘Assurance.’
According to the report, the profit continued its upward trend, reaching N2.548 trillion in 2022.
In October alone, a few months after the removal of the subsidy, the Chief Executive Officer of NNPC Ltd, Mele Kyari, said the company remitted N4.5 trillion as revenue to the federation account in October.
He made this disclosure while appearing before the Senate Committee on Finance to defend the company’s budget for the 2024 fiscal year.
- “I am glad to inform you, Mr. Chairman and distinguished senators that as of October we can deliver N4.5 trillion into the federation account as a company to this country In 2023,” Mr Kyari said.
Meanwhile, NNPCL is yet to be audited by an independent financial auditing firm, as demanded by most stakeholders in the industry.
Oil Theft as Impediments for Growth
In addition, the national oil company still battles with myriads of oil theft incidents across the country, thus impeding the growth and revenue potential of the sector at large
For instance, last week, authorities reported the discovery and destruction of 52 illegal refineries in Abia, Imo, Rivers, and Bayelsa states. Additionally, 32 illegal connections were uncovered in various locations across the Niger Delta.
NNPC Ltd also announced that it had between December 30, 2023, and January 5, 2024, recorded 157 incidents of crude oil theft from seven incident sources and arrested 17 suspects.
However, the company affirmed its unwavering commitment to eliminate the oil theft menace, emphasizing that there would be no retreat until it was completely eradicated.
What you should know
The NNPCL has faced criticism from industry participants and stakeholders for its failure to disclose financial performance for public scrutiny.
In its 46-year history, the NNPC opened its books for the fourth consecutive time during the 2021 financial year.
Meanwhile, in November, NNPCL forecasted a revenue increase to N4.5 trillion by the end of 2023, citing the commencement of operations at the Port Harcourt Refining Company.
