The Nigerian National Petroleum Company Limited (NNPC) has announced a record-breaking net profit of ₦3.297 trillion for the financial year ending December 2023. This marks a significant growth of ₦749 billion, or 28%, compared to the ₦2.548 trillion profit recorded in 2022. In line with its strong financial standing, the company has also declared a final dividend of ₦2.1 trillion, emphasizing its commitment to rewarding shareholders.
During a press conference held at the NNPC Towers in Abuja, the company’s Chief Financial Officer, Mr. Umar Ajiya, attributed this remarkable financial performance to strategic planning and operational resilience. He noted, “Our fiscal performance reflects both strategic foresight and operational resilience. Despite the inherent challenges of our operational and economic environment, we have improved the productivity and financial performance of this great company.”
NNPC’s 2023 Audited Financial Statement (AFS) showcases a positive trajectory for the company, continuing the turnaround that began in recent years. The company, which once faced substantial losses, first reported a profit in 2020 and has seen steady growth ever since. For context, NNPC posted a loss of ₦803 billion in 2018, which was significantly reduced to ₦1.7 billion in 2019. However, the company’s profits surged to ₦287 billion in 2020, followed by ₦674.1 billion in 2021, and ₦2.548 trillion in 2022.
Chairman of the NNPC Board, Chief Pius Akinyelure, attributed this success to the Petroleum Industry Act (PIA) 2021 and the unwavering efforts of the company’s Board, Management, and staff. He remarked, “The excellent performance came as the fruit of the PIA 2021, as well as the commitment of the Board, Management, and staff of the company.”
Looking ahead, NNPC has set an ambitious goal of achieving a crude oil production rate of 2 million barrels per day by the end of December 2024. The company’s Executive Vice President, Upstream, Oritsemeyiwa Eyesan, linked this target to recent successes in curbing crude oil theft and pipeline vandalism. “With improvements witnessed as a result of the renewed vigor in the fight against crude oil theft and pipeline vandalism, NNPC Ltd is targeting 2 million barrels per day crude oil production by the end of the year,” Eyesan said.
Despite these positive strides, NNPC is currently grappling with fuel queues in Lagos and the Federal Capital Territory (FCT). The company’s Executive Vice President, Downstream, Dapo Segun, appealed for patience, assuring the public that NNPC is working with relevant stakeholders to address the ongoing distribution and logistics challenges. “The company is working with relevant stakeholders to address the distribution, evacuation, and logistics challenges,” Segun stated.
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