Alex Omenye
The Nigerian National Petroleum Company Limited has announced a record net profit of N3.297 trillion for the financial year ending December 2023, marking the highest profit in the company’s 46-year history.
This represents a significant increase of over N700 billion, or 28%, compared to the N2.548 trillion profit recorded in 2022.
During a world press conference held at the NNPC Towers in Abuja on Monday, NNPCL’s Chief Financial Officer, Umar Ajiya, attributed the strong financial performance to the company’s commitment to transparency, accountability, and strategic management.
“Our fiscal performance reflects both strategic foresight and operational resilience. Despite the inherent challenges of our operational and economic environment, we have enhanced the productivity and financial performance of this great company,” Ajiya stated.
He further emphasized that the impressive profit underscores NNPCL’s dedication to sustaining profitability and supporting national energy security, as mandated by the Petroleum Industry Act 2021. Ajiya also hinted at the potential announcement of an Initial Public Offering once the company’s shareholders and Board finalize their decision.
Addressing concerns about subsidy payments, Ajiya clarified that “the company was only managing the PMS importation shortfall between it and the Federation.”
NNPCL Board Chairman, Chief Pius Akinyelure, also spoke at the conference, crediting the company’s excellent performance to the provisions of the PIA 2021, as well as the dedication of the Board, management, and staff. “The shareholders of the company have since approved a final dividend of N2.1 trillion in line with PIA 2021 provisions,” Akinyelure added.
Executive Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan, discussed NNPCL’s target to achieve a crude oil production rate of 2 million barrels per day by the end of the year, supported by improvements in the fight against crude oil theft and pipeline vandalism.
In response to ongoing fuel queues in parts of Lagos and the Federal Capital Territory, Executive Vice President, Downstream, Dapo Segun, appealed for public understanding, assuring that the company is working with relevant stakeholders to address the distribution, evacuation, and logistics challenges.
NNPCL’s financial performance has seen a dramatic turnaround in recent years. After posting a loss of N803 billion in 2018, the company reduced its loss to N1.7 billion in 2019. It then posted its first-ever profit of N287 billion in 2020, followed by N674.1 billion in 2021.
The N3.297 trillion profit for 2023 stands as a milestone in the company’s history, reflecting its sustained growth and operational efficiency.
