NNPC declares N3.3trn profit for 2023

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

This announcement was made by Pius Akinyelure, chairman of the NNPC board, during a media briefing on the company’s 2023 audited financial statements on Monday.

Akinyelure highlighted that the N749 billion rise in profit underscores the company’s financial resilience and strategic foresight. This positive trend is a stark contrast to the losses posted in previous years, with the company recording a loss of N803 billion in 2018 and N1.7 billion in 2019. The turnaround began in 2020, with NNPC posting a profit of N287 billion, followed by N674.1 billion in 2021.

NNPC’s revenue also saw a substantial increase last year, soaring to N24 trillion from N8.81 trillion in 2022. This impressive financial performance allowed the company to declare a dividend of N2.1 trillion to its shareholders for 2023.

Akinyelure attributed the company’s success to the implementation of the Petroleum Industry Act (PIA) 2021 and the unwavering commitment of the board, management, and staff of NNPC.

Umar Ajiya, the chief financial officer of NNPC, emphasized that the release of the audited financial statements reflects the company’s commitment to transparency and accountability. He noted that NNPC’s fiscal performance not only demonstrates strategic planning but also operational resilience in the face of challenging economic and operational environments.

“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 mentioned that the company is considering an initial public offering (IPO), pending a decision from its shareholders and board. 

Addressing concerns about subsidy payments, Ajiya clarified that NNPC’s role was to cover the shortfall in petrol importation costs between the company and the federation, debunking claims that the company was paying subsidies.

Oritsemeyiwa Eyesan, the executive vice-president of NNPC’s upstream operations, revealed that the company aims to increase crude oil production to 2 million barrels per day (bpd) by the end of the year, driven by improvements in the fight against crude oil theft and pipeline vandalism.

Dapo Segun, the executive vice-president of NNPC’s downstream operations, acknowledged the current fuel queues in Lagos and the Federal Capital Territory (FCT) and appealed for public understanding. He assured that NNPC is working with relevant stakeholders to resolve the distribution and logistics challenges causing the delays.