Introduction: The Nigerian National Petroleum Company Limited (NNPCL) has made headlines by achieving its highest profit in 45 years, reporting an impressive N2.548 trillion for the year 2022. This milestone, highlighted in the company’s 2022 Financial Performance Report, signifies a remarkable upswing since its establishment in 1977.
Financial Report Breakdown: In the detailed financial report, a notable transformation is evident. Starting with losses amounting to N803 billion in 2018 and increasing to N1.7 billion in 2019, the company turned the tide in 2020 with a profit of N287 billion, marking a significant ‘Turning Point.’ Subsequently, in 2021, the profit surged to N674.1 billion, aptly named ‘Assurance.’ The positive trajectory continued in 2022, reaching an unprecedented N2.548 trillion.
October Remittance: A noteworthy revelation came in October, just a few months after the removal of the subsidy, when NNPC Ltd’s Chief Executive Officer, Mele Kyari, proudly announced the remittance of N4.5 trillion as revenue to the federation account. This announcement was made during the company’s budget defense before the Senate Committee on Finance for the 2024 fiscal year.
Challenges and Commitment: Despite this remarkable financial performance, the company is not without its challenges. The menace of oil theft remains a significant impediment to growth and revenue potential. Recent reports of 52 illegal refineries discovered and destroyed, along with 32 illegal connections in the Niger Delta, highlight the persistent issue.
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Between December 30, 2023, and January 5, 2024, NNPC Ltd reported 157 incidents of crude oil theft from seven sources and arrested 17 suspects. The company, however, remains steadfast in its commitment to eliminating oil theft, assuring stakeholders that it will persist until the menace is eradicated completely.
Auditing and Transparency: Despite its financial success, NNPCL faces criticism for not being audited by an independent financial auditing firm, a demand echoed by many stakeholders in the industry. Transparency remains a crucial aspect, and the company needs to address these concerns to build trust among industry participants and stakeholders.
In the face of challenges and criticisms, NNPC Limited’s record-breaking profit in 2022 underscores its financial resilience and strategic initiatives. As the company continues to navigate the complex landscape of the oil and gas industry, addressing concerns, enhancing transparency, and sustaining financial excellence will be pivotal for its long-term success.
