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Nigerian National Petroleum Company Limited Celebrates Record ₦‎2 Trillion Profit

Nigerian National Petroleum Company Limited Celebrates Record ₦‎2 Trillion Profit

The Nigerian National Petroleum Company Limited (NNPCL) proudly announced on Tuesday that it achieved a remarkable profit of ₦2.548 trillion in 2022, marking its “highest profit since inception.” This achievement comes as a significant milestone for the state-owned oil corporation, established in 1977, and stands as the largest asset holder within the Nigerian oil and gas industry.

The NNPCL underwent a transformative shift towards commercial-driven operations in August 2021, following the enactment of the Petroleum Industry Act by former President Muhammadu Buhari. Since then, the company has experienced a remarkable financial turnaround.

In a concise document titled ‘NNPC Financial Performance,’ obtained by our correspondent in Abuja, the company revealed a noteworthy trajectory. Starting with a loss of ₦803 billion in 2018, the NNPCL improved, recording a reduced loss of ₦1.7 billion in 2019. The turning point came in 2020 when the company soared to a profit of ₦287 billion. This positive trend continued in 2021, with the profit growing to ₦674.1 billion.

In November 2023, Group Chief Executive Officer Mele Kyari expressed optimism about the company’s financial outlook. During a courtesy visit to Senate President Senator Godswill Akpabio, Kyari highlighted that the NNPCL anticipated a corporate profit exceeding ₦2 trillion after the release of its Annual Financial Statement for 2022.

Femi Soneye, Chief Corporate Communications Officer at NNPCL, emphasized Kyari’s explanation that the passage of the Petroleum Industry Act in 2021 significantly boosted the company’s profitability. The transformation journey saw a remarkable shift from a loss position of ₦803 billion in 2018 to a profitable position of ₦674 billion in 2021, culminating in the record ₦2.548 trillion profit in 2022 – a testament to the company’s resilience and success.

“Kyari noted that NNPCL is targeting a profit increase of N2tn when the 2022 Audited Financial Statements are released, adding that since July this year, the company had started paying dividends to its shareholders,” the statement stated.

In a documentary posted on its official X handle on Tuesday, the company stated that in the past week, 32 illegal pipeline connections were uncovered, and 52 illegal refineries were destroyed in the Niger Delta.

“Between December 30, 2023 and January 5, 2024, 157 (oil theft) incidences were recorded from several incident sources, including Nigeria Agip Oil Company, 62 incidents; Pipeline Infrastructure Nigeria Limited, 29; Maton Engineering Limited, 18; Tantita Security Services, 8; Shell Petroleum Development Company, 4; NNPCL Command and Control Centre, 2; and Government Security Agencies, 24,” the company stated.

It explained that in the past week, the 52 illegal refineries were discovered in Abia, Imo, Rivers and Bayelsa states, adding that the 32 illegal connections were uncovered in several parts of the Niger Delta, including Bayelsa, Rivers and Delta states.

The company said illegal connections were also removed and repaired along the central corridor in the Niger Delta, while seven illegal storage sites were uncovered in Akwa Ibom State, where buried drums of crude oil were unearthed.

In Bayelsa and Warri, sacks of stolen crude were discovered and confiscated, according to NNPCL, adding that oil well heads were vandalised by vandals in some of these areas.

It said, “In the past week, 25 cases of pipeline vandalism were recorded across several communities. Twelve vehicles conveying stolen crude were arrested in the past week across several locations in Rivers and Delta states, while 24 wooden boats conveying stolen crude were arrested and confiscated.

“Nine of these incidents took place in the deep blue water, 45 in the eastern region, 95 in the central region, while eight took place in the western region.”

It noted that during this period, 17 suspects were arrested, stressing that the oil company would continue to fight against oil thieves until the situation is curbed.

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