NNPC Reports Record £3.3 Trillion Profit in 2023 Amid Ongoing Economic Challenges
The Nigerian National Petroleum Company Limited (NNPC) has announced a record net profit of £3.3 trillion for the financial year ending December 2023, marking a substantial increase of over £700 billion (28%) compared to the previous year’s profit of £2.5 trillion.
This financial triumph was disclosed in a statement issued following a press conference at the NNPC Towers in Abuja on Monday, where the company’s Chief Financial Officer, Umar Ajiya, emphasized that the release of the Audited Financial Statement (AFS) underscored NNPC’s dedication to transparency and accountability.
“Our fiscal performance reflects both strategic foresight and operational resilience. Despite the inherent challenges of our operational and economic environment, we have improved the productivity and financial performance of this great company,” Ajiya stated, highlighting the company’s resolve to maintain profitability and contribute to national energy security as mandated by the Petroleum Industry Act 2021.
Ajiya also addressed speculations surrounding subsidy payments, clarifying that NNPC’s financial obligations were limited to managing the shortfall in petrol importation between the company and the federation. He hinted at the possibility of an Initial Public Offering (IPO) in the future, pending decisions by the shareholders and the board.
During the conference, NNPC Ltd Board Chairman, Chief Pius Akinyelure, attributed the company’s excellent performance to the strategic implementation of the Petroleum Industry Act 2021 and the unwavering commitment of the board, management, and staff. Akinyelure revealed that the shareholders had approved a final dividend of £2.1 trillion in line with the provisions of the PIA 2021.
The Executive Vice President of Upstream, Mrs Oritsemeyiwa Eyesan, expressed optimism about achieving a target of two million barrels per day of crude oil production by the end of the year, thanks to ongoing efforts to combat crude oil theft and pipeline vandalism.
Addressing the recent fuel shortages in parts of Lagos and the Federal Capital Territory, the Executive Vice President of Downstream, Mr Dapo Segun, appealed for public understanding, assuring that NNPC is collaborating with relevant stakeholders to resolve the distribution, evacuation, and logistics challenges causing the disruptions.
NNPC’s financial turnaround has been nothing short of remarkable. After reporting losses of £803 billion in 2018, the company managed to narrow this to £1.7 billion in 2019. The following year, NNPC posted its first-ever profit of £287 billion, which grew to £674.1 billion in 2021. The record-breaking £3.3 trillion profit for 2023 represents the highest financial achievement in the company’s 46-year history.
