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Oil Economy

NNPC Releases its 2023 Audited Financial Statement

  • Posting N3.3trn Net Profit and Declaring N2.1trn Dividend
  • Targets 2mbpd Crude Oil Production by Dec 2024

The NNPC Limited has released its 2023 Audited Financial Statement (AFS), barely few hours after reports of alleged non-remittance of $6.8 billion into the country’s Federation Account, declaring a net profit of N3.297 trillion at the close of the financial year ending December 2023, showing an increase of over N700 billion (28%) when compared to the 2022 profit of N2.548 trillion.

In a statement issued by the company’s communication officer Olufemi Soneye, the declaration was made during what he called “a world press conference” held at the NNPC Towers in Abuja Monday, while quoting the Chief Financial Officer of the Company, Mr. Umar Ajiya as saying that the release of the AFS testifies to the Company’s 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.

Adding that posting such impressive returns has demonstrated 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.

He explained that the NNPC Ltd. would announce its Initial Public offer (IPO) once the shareholders and Board have taken a decision, debunking claims on subsidy payment, saying the Company was only taking care of PMS importation shortfall between it and the Federation.

Speaking, the Chairman of the Board, Chief Pius Akinyelure said the excellent performance came as the fruit of the PIA 2021, and the commitment of the entire workforce in the company.

He added that the shareholders of the company have already approved a final dividend of N2.1trn in line with PIA 2021 provisions.

In her remarks, the Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan said the improvement that has been recorded so far came from renewed vigour, saying that it was as a result of the war they have carried out against crude oil theft and pipeline vandalism, adding that the NNPC Ltd. was targeting 2million barrels per day of crude oil production by the end of the year.

On the current fuel queues in parts of Lagos and the FCT, the Vice President, Downstream, Mr. Dapo Segun according to Olufemi, also appealed for understanding by Nigerians, saying that the Company was working with relevant stakeholders to address the distribution, evacuation and logistics challenges.

He recalled that in 2021, NNPC 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, posting, in 2020, its ‘first ever’ profit of N287 billion, recording, in 2021, a N674.1 billion profit, and in 2022, the profit grew to N2.548 trillion, seen as “an unprecedented achievement in its financial performance.”

Adding that the N3.297 trillion profit declared for 2023 was the highest since the Company’s inception 46 years ago.