The Nigerian National Petroleum Company Limited (NNPCL) has revealed a record-breaking net profit of ₦3.297 trillion for the financial year ending December 2023.
This marks a significant increase of ₦749 billion, or 28 per cent from the ₦2.548 trillion profit reported for 2022. The company has also declared a substantial final dividend of ₦2.1 trillion, underscoring its robust financial health and commitment to shareholder returns.
Speaking at a media conference in Abuja on Monday, the Chief Financial Officer of NNPC Ltd, Mr. Umar Ajiya, attributed the impressive financial performance to the company’s strategic foresight and operational resilience.
According to him, “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.” The release of the 2023 Audited Financial Statement (AFS) has shown a continued positive trend for NNPC, following a remarkable turnaround from previous years. The company, which had faced significant losses in the past, first reported a profit in 2020 and has since shown a steady increase in profitability.
In 2018, NNPC recorded a loss of ₦803 billion, which was reduced to ₦1.7 billion in 2019. The company’s profits surged to ₦287 billion in 2020, ₦674.1 billion in 2021, and ₦2.548 trillion in 2022.
Chairman of the NNPC Board, Chief Pius Akinyelure, credited the success to the Petroleum Industry Act (PIA) 2021 and the dedicated efforts of the Board, Management, and staff. “The excellent performance came as the fruit of the PIA 2021, the commitment of the Board, Management and staff of the company,” he said.
The NNPC has also set an ambitious target of reaching two million barrels per day in crude oil production by the end of December 2024. The Executive Vice President, Upstream, Oritsemeyiwa Eyesan, attributed this goal to recent improvements in tackling crude oil theft and pipeline vandalism as she said, “With improvements witnessed as a result of the renewed vigour in the war against crude oil theft and pipeline vandalism, NNPC Ltd is targeting two million barrels per day crude oil production by the end of the year.”
However, despite these positive developments, the company is currently dealing with fuel queues in Lagos and the Federal Capital Territory (FCT), to which the Executive Vice President, Downstream, Dapo Segun, appealed for patience as NNPC works with stakeholders to resolve distribution and logistics issues. “The Company is working with relevant stakeholders to address the distribution, evacuation and logistics challenges,” he said.