NNPC Declares N3.3trn Profit For 2023

The Nigerian National Petroleum Company (NNPC) Limited has announced a huge profit of N3.3 trillion for the fiscal year 2023, up from the N2.54 trillion profit reported in 2022.

Pius Akinyelure, chairman of the NNPC board, made the news during a media conference on the company’s audited financial accounts for 2023 on Monday.

Akinyelure stated that the N749 billion increase in profit demonstrates the company’s financial strength and strategic insight. This positive trajectory contrasts sharply with the company’s losses in previous years, which totalled N803 billion in 2018 and N1.7 billion in 2019. The turnaround began in 2020, when NNPC reported a profit of N287 billion, followed by N674.1 billion in 2021.

NNPC’s revenue also increased significantly last year, rising to N24 trillion from N8.81 trillion in 2022. This remarkable financial success enabled the corporation to distribute a dividend of N2.1 trillion to its shareholders in 2023.

Akinyelure attributed the company’s achievement to the execution of the Petroleum Industry Act (PIA) 2021 and the unshakeable commitment of NNPC’s board, management, and workforce.

Umar Ajiya, NNPC’s chief financial officer, emphasised that the release of the audited financial statements demonstrates the company’s commitment to transparency and responsibility. He stated that NNPC’s fiscal performance reflects not only strategic planning, but also operational tenacity in the face of difficult economic and operational conditions.

“Our fiscal performance reflects both strategic foresight and operational resilience. Despite inherent challenges in our operational and economic environment, we have improved the productivity and the financial performance of this great company,” Ajiya said.

He also stated that the company is considering an initial public offering (IPO) pending a decision by its shareholders and board.

Addressing concerns regarding subsidy payments, Ajiya stated that the NNPC’s duty was to offset the difference in petrol importation prices between the corporation and the federation, refuting assertions that the company was paying subsidies.

Oritsemeyiwa Eyesan, the executive vice-president of NNPC’s upstream operations, stated that the corporation intends to boost crude oil production to 2 million barrels per day (bpd) by the end of the year, owing to progress in the fight against crude oil theft and pipeline vandalism.

Dapo Segun, executive vice-president of NNPC’s downstream operations, recognised the existing fuel queues in Lagos and the Federal Capital Territory (FCT) and asked for public understanding. He promised that NNPC is working with relevant stakeholders to tackle the distribution and logistics issues that have caused the delays.

A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.

Nnamdi Okoli