NNPC Posts Record N3.3 Trillion Net Profit, Declares N2.1 Trillion Dividend for 2023.
The Nigerian National Petroleum Company Limited (NNPC) has announced a record-breaking net profit of N3.297 trillion for the 2023 financial year, marking a 28% increase from the N2.548 trillion recorded in 2022. This profit is the highest ever achieved in the company’s 46-year history.
During a world press conference held at NNPC Towers in Abuja, the Chief Financial Officer, Mr. Umar Ajiya, highlighted that the release of the 2023 Audited Financial Statement (AFS) underscores the company’s dedication to transparency and accountability. “Our fiscal performance reflects both strategic foresight and operational resilience,” Ajiya stated, emphasizing the company’s ability to improve productivity and financial performance despite the challenges posed by the operational and economic environment.
The significant profit increase is seen as a testament to NNPC Ltd’s commitment to maintaining profitability while supporting national energy security, as mandated by the Petroleum Industry Act (PIA) 2021. Mr. Ajiya also hinted that the company might announce an Initial Public Offering (IPO) once the shareholders and board decide, and clarified that NNPC is only managing the PMS importation shortfall between itself and the Federation, dismissing claims about subsidy payments.
The Chairman of NNPC Ltd’s Board, Chief Pius Akinyelure, attributed the impressive performance to the impact of the PIA 2021, as well as the dedication of the board, management, and staff. He announced that shareholders have approved a final dividend of N2.1 trillion in accordance with the provisions of the PIA 2021.
Executive Vice President of Upstream, Mrs. Oritsemeyiwa Eyesan, highlighted the company’s efforts in combating crude oil theft and pipeline vandalism, projecting a target of 2 million barrels per day in crude oil production by the end of the year.
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Regarding the ongoing fuel queues in parts of Lagos and the Federal Capital Territory (FCT), the Executive Vice President of Downstream, Mr. Dapo Segun, appealed for patience from Nigerians, assuring that NNPC is working with relevant stakeholders to resolve the distribution, evacuation, and logistics challenges.
NNPC’s journey to profitability began in 2020 when it posted its first-ever profit of N287 billion. This was followed by a N674.1 billion profit in 2021 and N2.548 trillion in 2022, showcasing a remarkable turnaround from the N803 billion loss recorded in 2018.
The company’s future plans, as detailed in a report on its website, include enhancing upstream production, expanding gas processing and transportation services for both domestic consumption and export, and revamping its refining assets portfolio through greenfield projects with chemical production integration and equity partnerships. These initiatives are aimed at ensuring sufficient capacity to meet both local and international demand for premium energy products and services.
