The Nigerian National Petroleum Company Limited (NNPCL) has declared a net profit of N3.297 trillion at the close of the financial year which ended in December 2023.
The net profit for 2023 represented an increase of over N700 billion (28 per cent) when compared to the profit of N2.548 trillion recorded in 2022.
The ₦3.3 trillion net profit for 2023 was stated in the 2023 Audited Financial Statement (AFS), as contained in a press release, on Monday, by the NNPCL Chief Corporate Communications Officer, Olufemi Soneye.
The company also assured that it was targeting two million barrels per day (2mbpd) crude oil production by the end of the year.
The Chief Financial Officer of the Company, Mr. Umar Ajiya, said at World Press Conference held at the NNPCL Towers in Abuja, the release of the AFS was a testament to the company’s commitment to transparency and accountability.
He said: “Our 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 added that posting such impressive returns demonstrated the commitment of NNPC to sustaining profitability and supporting the attainment of national energy security.
He said the commitment was as stipulated by the Petroleum Industry Act (PIA) 2021 and, by extension, as expected by the company’s shareholders.
Ajiya explained that the NNPCL will announce its Initial Public offer (IPO) once the shareholders and Board make a decision on it.
He also debunked claims on subsidy payment, saying NNPCL was only taking care of PMS importation shortfall between it and the Federation.
Speaking earlier at the press conference, Chairman of the NNPCL Board, Chief Pius Akinyelure, said the excellent performance came as the fruit of the PIA 2021 and the commitment of the Board, Management and staff of the company.
Akinyelure added that the shareholders of the company have since approved a final dividend of N2.1trn, in line with PIA 2021 provisions.
In her remarks at the briefing, Executive Vice President (Upstream), Mrs. Oritsemeyiwa Eyesan, said NNPCL is targeting two million barrels per day crude oil production by the end of the year.
She said the target would be made possible with the improvements witnessed as a result of the renewed vigour in the war against crude oil theft and pipeline vandalism,
On the current fuel queues in parts of Lagos and the FCT, Executive Vice President (Downstream), Mr. Dapo Segun, appealed for understanding from Nigerians.
He said NNPCL was working with relevant stakeholders to address the challenges of distribution, evacuation and logistics.
The N3.297 trillion profit declared for 2023 is the highest since the Company’s inception, 46 years ago.
It would be recalled that NNPCL, in 2021, declared a profit in its operations for the first time. From a loss position of N803 billion in 2018, it reduced the loss further down to N1.7 billion in 2019.
However, in 2020, it posted its ‘first ever’ profit of N287 billion; then in 2021, it recorded a N674.1 billion profit and in 2022, the profit grew to N2.548 trillion, an unprecedented achievement in its financial performance.
