By Adewale Sanyaolu and Adanna Nnamani (Abuja)
NNPC Limited has unveiled its 2023 Audited Financial Statement, showcasing a remarkable N3.297 trillion net profit, marking a significant leap from the N2.548 trillion recorded in 2022.
The 28 per cent increase, which adds over N700 billion to the previous year’s performance, reflects the company’s enhanced financial robustness and operational efficiency.
At a world press conference held on Monday at the NNPC Towers in Abuja, the Chief Financial Officer, Mr. Umar Ajiya, emphasised that the release of the audited financial statement demonstrates the company’s unwavering commitment to transparency and accountability. He lauded the company’s fiscal performance as a product of strategic foresight and operational resilience, despite the myriad challenges facing the oil and gas industry in Nigeria.
“Our impressive financial performance is a testament to our ability to navigate the complexities of the operational and economic environment. We have successfully improved productivity and achieved record financial results,” Ajiya stated.
Ajiya further highlighted that NNPC Limited’s impressive profit margins underscore the company’s dedication to sustaining profitability and contributing to national energy security, as mandated by the Petroleum Industry Act (PIA) of 2021. This achievement, he noted, aligns with shareholder expectations and reinforces the company’s growing reputation as a key player in the global energy landscape.
In anticipation of the company’s future growth trajectory, Ajiya revealed that NNPC Limited is considering launching an Initial Public Offering (IPO), pending approval from shareholders and the Board. He also addressed speculation surrounding the company’s role in subsidy payments, clarifying that NNPC Limited was merely covering the shortfall in Premium Motor Spirit (PMS) imports on behalf of the Federation.
Speaking at the conference, Chief Pius Akinyelure, Chairman of the NNPC Limited Board, credited the company’s stellar performance to the transformative impact of the Petroleum Industry Act, alongside the unwavering commitment of the Board, management, and staff. He announced that the shareholders had approved a final dividend of N2.1 trillion in line with the PIA’s provisions, signaling a new era of profitability and growth for the company.
Mrs. Oritsemeyiwa Eyesan, Executive Vice President, Upstream, also spoke at the briefing, noting that NNPC Limited’s aggressive efforts to combat crude oil theft and pipeline vandalism had yielded significant results. As a result, the company is now targeting an ambitious crude oil production goal of 2 million barrels per day by the end of 2024, a target that could solidify Nigeria’s position as a leading oil producer on the global stage. On the issue of fuel scarcity in parts of Lagos and the Federal Capital Territory (FCT), Mr. Dapo Segun, Executive Vice President, Downstream, appealed for patience from Nigerians.
He reassured the public that NNPC Limited is working closely with stakeholders to address distribution, evacuation, and logistics challenges to ensure the steady supply of fuel nationwide.
NNPC Limited’s financial transformation has been nothing short of extraordinary. After reporting a staggering loss of N803 billion in 2018, the company’s fortunes began to change, with losses shrinking to just N1.7 billion in 2019. Then, in 2020, NNPC posted its first-ever profit of N287 billion, followed by N674.1 billion in 2021. The unprecedented N3.297 trillion profit declared for 2023 is a historic milestone in the company’s 46-year history, setting a new benchmark for excellence in the Nigerian oil and gas industry.