… denies subsidy payment, says it was only taking care of PMS importation shortfall

… cites distribution, logistics challenges as causes of fuel scarcity in Lagos, Abuja

Oredola Adeola

The Nigerian National Petroleum Company (NNPC) Limited, in its 2023 Audited Financial Statement (AFS), has declared a net profit of N3.297 trillion at the close of the financial year which ended in December 2023, translating to an increase of over 700 billion (28%) when compared to the 2022 profit of N2.548 trillion.

Olufemi Soneye,  Chief Corporate Communications Officer, NNPC Ltd made this known in a statement obtained by Advisors Reports on the sideline of the world press conference held at the NNPC Towers in Abuja on Monday.

Checks by Advisors Reports based on available data indicated that the company posted its first-ever profit of ₦287 billion in 2020.

This was followed by a profit of ₦674.1 billion in 2021. In 2022, the profit further increased to ₦2.548 trillion, and in 2023, the company declared a record-breaking profit of ₦3.297 trillion, marking the highest profit in its 46-year history.

It would be recalled that in 2021, NNPC declared a profit in its operations for the first time. The company had previously been in a loss position, recording a loss of ₦803 billion in 2018, which was significantly reduced to ₦1.7 billion in 2019.

Mr. Umar Ajiya, Chief Financial Officer of the Company, in his remark, stated that the AFS is a testament to the Company’s commitment to transparency and accountability.

According to him, NNPCL’s fiscal performance reflects both strategic foresight and operational resilience.

“Despite inherent challenges of our operational and economic environment, we have improved the productivity and the financial performance of this great company,” Ajiya stated.

Ajiya added that posting such impressive returns demonstrates NNPC Ltd’s commitment to sustaining profitability and supporting the attainment of national energy security as stipulated by the Petroleum Industry Act (PIA) 2021, and by extension, as expected by the Company’s shareholders.

Reacting to the claim that President Bola Tinubu has permitted the company to utilise the 2023 final dividends due to the federation to pay for petrol subsidy, Ajiya debunked the claims, explaining that the Company was only taking care of PMS importation shortfall between it and the Federation.

He emphasised that NNPC Ltd will announce an Initial Public offer (IPO) once the shareholders and Board decide.

Chief Pius Akinyelure, Chairman of the NNPC Ltd Board, in his comment on the sideline of the press conference, said that the excellent performance came as the fruit of the PIA 2021, the commitment of the Board, Management, and staff of the company.

Akinyelure added that the company’s shareholders have since approved a final dividend of N2.1trn in line with PIA 2021 provisions.

Mrs. Oritsemeyiwa Eyesan, Executive Vice President, Upstream, in her remarks, said with improvement witnessed in the company’s net profit was as a result of the renewed vigour in the war against crude oil theft and pipeline vandalism,

She confirmed that NNPC Ltd is targeting 2 million barrels per day of crude oil production by the end of the year (2024).

Mr. Dapo Segun, Executive Vice President, Downstream, in his remark on the current fuel queues in parts of Lagos and the FCT, appealed for understanding from Nigerians, saying that the Company is working with relevant stakeholders to address the distribution, evacuation, and logistics challenges.

Abuja