The Nigerian National Petroleum Company (NNPC) Limited is projecting a significant surge in its profitability, expecting a N2 trillion increase when the 2022 Audited Financial Statements (AFS) are released.
Mele Kyari, NNPC Group Chief Executive Officer (GCEO), disclosed this information during a courtesy visit to Senate President Godswill Akpabio at the National Assembly in Abuja.
In a landmark move, NNPC has initiated dividend payments to its shareholders, commencing in July 2023. This marks a turning point for the Corporation, signaling its transition from a traditional state-owned enterprise to a more commercially oriented entity.
Kyari said that the enactment of the Petroleum Industry Act (PIA) 2021 had given birth to a new commercially oriented National Oil Company (NOC) that is governed by the Company & Allied Matters Act (CAMA) principles.
“With the passage of the PIA 2021, NNPC’s profitability margins have significantly risen, growing from a loss position of N803 billion in 2018 to a profit position of N674 billion in 2021,” the GCEO said.
According to him, NNPC Limited is involved in the entire value chain of the oil and gas business and controls about 30 percent of the nation’s petroleum downstream retail market.
On the other hand, the state-owned oil firm said that it has made a robust plan for the supply of petroleum products especially Premium Motor Spirit (PMS), also known as petrol, sufficient to last beyond the ember months and the New Year festivities.
“By the creation of the National Assembly, NNPC Ltd. is saddled with the responsibility of guaranteeing Nigeria’s energy security which is critical to national security.
“We have made a robust plan for the forthcoming end of the year festivities and beyond. We do not see any shortages in the petroleum products supply for the period,” the GCEO said in a statement released by the state-owned oil company on Twitter.
While identifying crude oil theft and pipeline vandalism as major challenges to the Company’s business, Kyari said the recent collaboration with the nation’s security services, as well as third-party security contractors, has been yielding results, mostly in the area of increased crude oil production.
The GCEO said NNPC limited is investing in several gas and power projects across the country, aimed at supporting the Federal Government’s power generation and industrialisation aspirations.
In addition, he assured that state-owned is working to revamp local refining of petroleum products and collaborating with indigenous refiners to ensure that Nigeria becomes a net exporter of petroleum products.
In his response, the Senate President assured the GCEO of the 10th Senate’s support, saying that the Nigerian Parliament appreciates the Kyari-led Management for its commitment to ensuring robust petroleum product supply during the yuletide period.
“Nigerians always want to hear good news. We are glad that you have made robust plans to provide sufficient product supply this coming festive period and beyond,” Akpabio stated.
- NNPC projects a N2 trillion profit increase in its 2022 AFS.
- The Corporation has commenced dividend payments to its shareholders.
- NNPC’s improved financial performance stems from strategic initiatives.
- The Corporation remains committed to ensuring energy security and upholding corporate governance principles.