By Jemimah Wellington, JKNewsMedia Reporter
THE NIGERIAN National Petroleum Company Limited (NNPC) has announced a record net profit of N3.297 trillion for the financial year ending December 2023.
This represents a 28% increase from the N2.548 trillion profit reported in 2022, marking the highest profit in the company’s 46-year history.
During a press briefing at the NNPC Towers in Abuja on Monday, Chief Financial Officer Umar Ajiya highlighted this achievement, noting that the 2023 Audited Financial Statement (AFS) reflects the company’s dedication to transparency, operational resilience, and strategic planning.
Despite facing significant operational and economic challenges, NNPC managed to enhance its productivity and financial performance substantially.
Addressing rumours about subsidy payments, Ajiya clarified that NNPC has not paid any subsidies to marketers in the past nine months.
He explained that the company has handled the shortfall in Premium Motor Spirit (PMS) importation internally, without involving any direct financial transactions with marketers.
NNPC Board Chairman, Chief Pius Akinyelure, attributed the company’s remarkable financial performance to the Petroleum Industry Act (PIA) 2021, which has strengthened the company’s operations.
He also noted that shareholders have approved a final dividend of N2.1 trillion in line with PIA provisions.
Executive Vice President of Upstream, Mrs. Oritsemeyiwa Eyesan, confirmed that NNPC is targeting a crude oil production of 2 million barrels per day by the end of 2024.
She credited this goal to the intensified efforts against crude oil theft and pipeline vandalism.
Meanwhile, addressing the current fuel queues in Lagos and the Federal Capital Territory, Executive Vice President of Downstream, Mr. Dapo Segun, called for public understanding.
He assured Nigerians that NNPC is collaborating with relevant stakeholders to resolve distribution and logistics challenges.
In reflecting on NNPC’s journey to profitability, it is notable that the company transitioned from recording a loss of N803 billion in 2018 to achieving its first-ever profit of N287 billion in 2020.
The profit grew steadily, reaching N674.1 billion in 2021 and N2.548 trillion in 2022.
The N3.297 trillion profit recorded in 2023 underscores the significant strides made by NNPC in recent years.
NNPC Refutes Fuel Subsidy Payments to Marketers
In another report, the NNPC Ltd has refuted recent claims of making fuel subsidy payments, asserting that it has not paid any subsidies to marketers for the past nine months.
During a press briefing in Abuja, Alhaji Umar Ajiya, the Chief Financial Officer of NNPC Ltd., clarified that the company has been managing the shortfall in Premium Motor Spirit (PMS) importation through internal arrangements with the federation.
He emphasized that no direct financial transactions have occurred between NNPC Ltd. and marketers under the guise of subsidies.
Ajiya stated, “Not a single kobo has been paid as a subsidy to any marketer by NNPC Ltd.
“The arrangement has solely involved reconciling cost differences in PMS importation between NNPC Ltd. and the federation.”
He further explained that although the government mandates the sale of PMS at a price lower than the landing cost, the resulting financial shortfall is addressed internally within the company, without involving external payments to marketers.
Supporting this stance, Dapo Segun, Executive Vice President of Downstream at NNPC Ltd., highlighted the company’s commitment to maintaining open credit agreements with suppliers.
He addressed the speculation regarding outstanding payments to suppliers, which have been rumored to reach $6.8 billion, clarifying that the actual figure is much lower.
Segun stressed the importance of NNPC Ltd.’s relationship with its suppliers, noting that consistent payments are crucial to ensuring a steady supply of PMS across the country.
“Our focus remains on maintaining a reliable supply of PMS, with a flexible payment system that adapts as we continue our operations,” Segun concluded.
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