The Nigerian National Petroleum Company Limited has announced a record net profit of N3.297 trillion for the financial year ending in December 2023.
This marks 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, the Chief Financial Officer of NNPCL, Umar Ajiya, highlighted the company’s strong financial performance as a testament to its commitment to transparency and accountability.
“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 stated.
Ajiya further emphasized that the impressive profit demonstrates NNPCL’s dedication to sustaining profitability and supporting national energy security, as outlined by the Petroleum Industry Act (PIA) 2021. He also mentioned that the company would announce an Initial Public Offering (IPO) once the shareholders and Board made a decision.
Addressing claims about subsidy payments, Ajiya clarified, “The Company was only taking care of PMS importation shortfall between it and the Federation.”
Speaking earlier at the press conference, the Chairman of the NNPCL Board, Chief Pius Akinyelure, attributed the company’s excellent performance to the provisions of the PIA 2021, as well as the commitment 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.
The Executive Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan, also spoke at the briefing, noting that the company is aiming for a crude oil production target of 2 million barrels per day by the end of the year. This goal is supported by improvements in the fight against crude oil theft and pipeline vandalism.
Regarding the ongoing fuel queues in parts of Lagos and the Federal Capital Territory (FCT), the Executive Vice President, Downstream, Dapo Segun, appealed for understanding from Nigerians. He assured the public that the company is working with relevant stakeholders to resolve the distribution, evacuation, and logistics challenges.
NNPCL’s financial performance has seen a remarkable turnaround in recent years. After posting a loss of N803 billion in 2018, the company reduced its loss to N1.7 billion in 2019. In 2020, it posted its first-ever profit of N287 billion, followed by N674.1 billion in 2021. The N3.297 trillion profit for 2023 is the highest in the company’s 46-year history.
