Wednesday, July 6, 2022

BREAKING NEWS: In 44 years NNPC posts first profit

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In 44 years NNPC posts first profit, stakeholders applaud feat

The Nigeria President, Major General Muhammadu Buhari (retd.), has announced the net profit reported by the Nigerian National Petroleum Corporation for the first time in its 44-year history.

Buhari’s announcement was contained in a statement on Thursday by his Special Adviser on Media and Publicity, Femi Adesina, titled ‘President Buhari announces profit after tax by the NNPC, and publication of audited financial statements for Year 2020’.

According to the statement, the announcement is in fulfillment of an earlier pledge by the Federal Government to publicly announce the financial position of the NNPC.

The president, who doubles as Minister for Petroleum Resources, said, “I am pleased to announce the declaration of profit after tax of N287bn in year 2020 by the Nigerian National Petroleum Corporation. This is sequel to the completion of the statutory annual audit exercise for year 2020.

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“The NNPC losses were reduced from N803bn in year 2018 to N1.7bn in year 2019 and the eventual declaration of net profit in year 2020 for the first time in its 44-year history.”

Buhari said the development was consistent with his regime’s commitment to ensuring prudent management of resources and maximisation of value for the Nigerian people from their natural resources.

“I have further directed the Nigerian National Petroleum Corporation to timely publish the audited financial statements in line with the requirements of the law and as follow up to our commitment to ensuring transparency and accountability by public institutions,” he added.

Buhari congratulated the board, management and staff of the corporation, expressing confidence in greater value creation for Nigerians.

The Group Managing Director, NNPC, Mele Kyari, on Thursday night said the corporation was able to cut down its procurement cost by 30 per cent last year which helped it post the N287bn profit recorded by the oil firm in 2020.

Industry stakeholders, who spoke to one of our correspondent, said the profit posted by the NNPC was commendable and necessary for its transformation into a limited liability company.

The President, Petroleum and Natural Gas Senior Staff Association of Nigeria, Festus Osifo, said the latest development had shown that the NNPC was making positive efforts to transform itself.

He said, “Before now the financial statements of NNPC has been something that’s been shrouded in some level of opacity. So, for us to start having financial statements from NNPC, we think it is a good development, especially now that it is transforming to a limited company.

“The corporation has existed for over 40 years, and it is difficult for you to get their financial accounts, but we have started getting it under the current leadership. I think is a positive development.

“Since they are moving into a company to be registered under CAMA, it becomes mandatory for their results to be released and that is much better and necessary for the institution.”

An energy expert, Bala Zakka, who commended the corporation for the feat, called for sustainability.

Zakka noted that the corporation must live up to expectations during its period of transformation, so as to make prospective investors have increased interest in the firm.

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