NNPC releases 2023 AFS

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The Nigerian National Petroleum Company (NNPC) Limited, has released its 2023 Audited Financial Statement (AFS), reporting a net profit of N3.297 trillion for the financial year ending in December 2023. 

The company’s Chief Corporate Communications Officer, Olufemi Soneye, in a statement on Monday, said this marks a significant increase of over N700 billion (28%) compared to the N2.548 trillion profit recorded in 2022.

During a world press conference held at the NNPC Towers in Abuja, Chief Financial Officer Umar Ajiya emphasised that the release of the AFS underscores the company’s dedication to transparency and accountability.

“Our fiscal performance reflects both strategic foresight and operational resilience. Despite the inherent challenges in our operational and economic environment, we have enhanced the productivity and financial performance of this great company,” Ajiya said.

He further highlighted that such remarkable returns demonstrate NNPC Ltd’s commitment to sustaining profitability and advancing national energy security, as mandated by the Petroleum Industry Act (PIA) 2021, and as expected by the Company’s shareholders.

Ajiya also added that that NNPC will announce its Initial Public Offering (IPO) once a decision is reached by the shareholders and Board. 

He dismissed claims regarding subsidy payments, clarifying that the company is only covering the PMS importation shortfall between itself and the Federation.

NNPC Board Chairman Pius Akinyelure attributed the excellent performance to the reforms brought about by the PIA 2021, as well as the dedication of the Board, Management, and staff of the company.

Akinyelure also noted that the shareholders have approved a final dividend of N2.1 trillion in accordance with the provisions of the PIA 2021.

Meanwhile, Executive Vice President, Upstream, Oritsemeyiwa Eyesan, stated that with the improvements resulting from intensified efforts against crude oil theft and pipeline vandalism, NNPC is aiming to achieve a crude oil production target of 2 million barrels per day by the end of the year.

Addressing the ongoing fuel queues in parts of Lagos and the FCT, Executive Vice President, Downstream, Dapo Segun, appealed for patience from Nigerians. He assured that the company is collaborating with relevant stakeholders to resolve the distribution, evacuation, and logistics challenges.

Recall that in 2021, NNPC declared a profit in its operations for the first time. From a loss of N803 billion in 2018, the company significantly reduced the loss to N1.7 billion in 2019. 

In 2020, NNPC posted its first-ever profit of N287 billion, followed by a profit of N674.1 billion in 2021, and an unprecedented N2.548 trillion profit in 2022. The N3.297 trillion profit declared for 2023 marks the highest in the company’s 46-year history.