NNPC Ltd declares record N3.3t net profit in 2023 audited financial statement, sets ambitious targets for 2024

•From left: Permanent Secretary, Ministry of Petroleum Resources, Ambassador Nicholas Agbo Ella; Chairman, NNPC Ltd Board, Chief Pius Akinyelure and the CFO NNPC Ltd, Mr. Umar Ajiya during the Release of NNPC Ltd’s 2023 Audited Financial Statement (AFS) at the NNPC Towers in Abuja, on Monday…

The Nigerian National Petroleum Company Limited (NNPC Ltd) has announced a historic net profit of N3.297 trillion in its 2023 Audited Financial Statement (AFS). This marks a significant 28% increase from the N2.548 trillion profit recorded in 2022, reflecting the company’s robust financial health and strategic management amidst challenging economic conditions.

According to a statement, at a world press conference held at the NNPC Towers in Abuja, the company’s Chief Financial Officer, Mr. Umar Ajiya, highlighted the achievement as a testament to NNPC’s commitment to transparency, accountability, and operational excellence. “Our fiscal performance reflects both strategic foresight and operational resilience. Despite the inherent challenges of our operational and economic environment, we have improved the productivity and financial performance of this great company,” Ajiya stated.

The impressive financial performance has also allowed the NNPC Ltd to declare a final dividend of N2.1 trillion, approved by the company’s shareholders in line with the provisions of the Petroleum Industry Act (PIA) 2021. This dividend reflects NNPC’s ongoing commitment to its shareholders and its role in supporting Nigeria’s energy security.

Mr. Ajiya also addressed the possibility of an Initial Public Offering (IPO), noting that the decision rests with the company’s shareholders and board. He took the opportunity to debunk recent claims regarding subsidy payments, clarifying that NNPC Ltd’s role was limited to managing the shortfall in Premium Motor Spirit (PMS) importation between the company and the Federation.

The Chairman of the NNPC Ltd Board, Chief Pius Akinyelure, attributed the company’s outstanding performance to the enactment of the PIA 2021, alongside the dedication of the Board, management, and staff. “The excellent performance came as the fruit of the PIA 2021, and the commitment of the Board, Management, and staff of the company,” Akinyelure emphasized.

Looking ahead, the Executive Vice President of Upstream, Mrs. Oritsemeyiwa Eyesan, announced that NNPC Ltd is targeting an ambitious crude oil production goal of 2 million barrels per day (bpd) by the end of 2024. This target, she noted, is achievable due to recent successes in combating crude oil theft and pipeline vandalism, which have historically hampered production levels.

Meanwhile, addressing the current fuel queues in parts of Lagos and the Federal Capital Territory (FCT), the Executive Vice President of Downstream, Mr. Dapo Segun, appealed for public understanding. He assured that the company is working closely with relevant stakeholders to resolve distribution, evacuation, and logistics challenges that have led to the shortages.

NNPC Ltd’s financial trajectory has been on a remarkable upward trend since 2020 when the company posted its first-ever profit of N287 billion. The profit increased to N674.1 billion in 2021, then nearly quadrupled to N2.548 trillion in 2022. The N3.297 trillion profit for 2023 represents the highest in the company’s 46-year history, marking a new era of financial stability and growth for Nigeria’s national oil company.

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