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    Friday, March 24, 2023

    NNPCL Projects N674bn Post-PIA Annual Profit

    Olufemi Adeyemi 

    Chief Corporate Communications Officer of the Nigerian National Petroleum Company (NNPC) Limited, Garba-Deen Mohammad, has said the oil firm expects to surpass its 2021 net profit in the financial period of 2022.

    The Nigerian National Petroleum Company (NNPC) Limited has projected that its profit for the 2022 financial year would be higher than N674bn, because efforts were intensified to actualise this during the financial period.

    It disclosed this at a sensitisation workshop organised by the oil company in Abuja for the National Association of Nigerian Students, with the theme, “Understanding the NNPC Limited Post-PIA” (Petroleum Industry Act).

    Speaking on behalf of the firm, the chief corporate communications officer, NNPC Limited, Garba-Deen Mohammad, explained that in 2020, the company succeeded in breaking its 44-year financial loss records, as it posted a profit of N287bn that year.

    “NNPC has declared profits consecutively for two years, in 2020 and 2021. In 2020, it was N287bn, up from a loss of N800bn. The N287bn profit moved up to N674bn in 2021 and by the time the figures are out for 2022, this profit margin stands a chance of going up.

    “And this is what goes into the federation through taxes. That is how the governors get money to pay salaries because NNPCL does not have to release the money to the Federation Account. But it will pay royalties, taxes, etc.

    “So when you (students) help NNPCL to do well, you are helping the country and your future. Because whether you like it or not, one day you’ll be in charge. And if you are in charge in a very comfortable country, you’ll be comfortable,” he stated.

    In October 2022, NNPCL announced that it grew its profit after tax and assets from N287bn and N15.86tn in 2020, to N674bn and N16.3tn in 2021, respectively.

    The company made this public in its Group Audited Financial Statement for the year ended December 31, 2021.

    “In September 2021, Mr President graciously approved the publication of the 2020 NNPC Group Audited Financial Statement, in which NNPC declared a profit after tax of N287bn for the first time in its 44 years.

    “I am happy to announce that the Board of NNPC Limited has approved the 2021 audited financial statements, and NNPC progressed to a new performance level, from N287bn profit in 2020 to an N674bn profit after tax in 2021, climbing higher by 134.8 per cent year-on-year profit growth,” the oil firm’s Chief Executive, Mele Kyari, had stated in October last year.

    On the essence of the workshop, Mohammad explained that it was organised in collaboration with civil society to sensitise Nigerian students on the operations of NNPCL.

    “This sensitisation programme with students of Nigerian tertiary institutions is one of the steps that NNPCL is taking in order to establish a connection with the leaders of tomorrow.

    “People often ask about the owner of NNPCL. As it is, NNPCL still belongs to Nigerians. The Federal Ministry of Finance and the Federal Ministry of Petroleum Resources are jointly holding the shares of NNPCL in trust for Nigerians.

    At some point in the future, NNPC Ltd will go to the stock market via IPO (Initial Public Offer), and at that point, everyone is free to buy shares in it. There will be equal opportunity for everybody,” he stated.

    During the same year in 2022, Saudi Arabia’s oil firm, Aramco, recorded annual net profit of $161.1 billion. Its Free cash flow hit a record of $148.5 billion last year, improving on the $107.5 billion reported for 2021.

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