In a remarkable display of resilience and strategic foresight, the Nigerian National Petroleum Corporation (NNPC) Limited has announced a historic net profit of N3.297 trillion for the financial year ending December 2023. This staggering figure represents a 28% increase from the N2.548 trillion profit recorded in 2022, marking the highest profit in the company’s 46-year history.
At a world press conference held at the NNPC Towers in Abuja, the Chief Financial Officer, Mr. Umar Ajiya, emphasized that the company's impressive fiscal performance underscores its commitment to transparency, accountability, and sustained profitability, aligning with the goals set forth in the Petroleum Industry Act (PIA) of 2021. Ajiya highlighted that despite the operational and economic challenges, NNPC Limited has not only managed to improve productivity but also strengthened its financial standing, further solidifying its role in ensuring national energy security.
“This record-breaking profit is a testament to the strategic direction and operational efficiency we have adopted. We remain committed to our shareholders and the broader objectives of national energy security as enshrined in the PIA 2021,” Ajiya stated. He also hinted at the potential for an Initial Public Offer (IPO) in the near future, contingent on the decisions of the shareholders and the Board.
The Chairman of the NNPC Ltd. Board, Chief Pius Akinyelure, attributed this financial success to the transformative impact of the PIA 2021 and the unwavering dedication of the company's Board, Management, and staff. He announced that the shareholders have approved a final dividend of N2.1 trillion, a reflection of the company’s robust financial health.
Further amplifying the company's achievements, the Executive Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan, revealed that NNPC Ltd. is targeting an ambitious crude oil production goal of 2 million barrels per day by the end of 2024. This target is bolstered by the company's renewed efforts to combat crude oil theft and pipeline vandalism, which have plagued the sector for years.
Addressing the current fuel queues in Lagos and the Federal Capital Territory (FCT), the Executive Vice President, Downstream, Mr. Dapo Segun, appealed for patience and understanding from Nigerians. He assured the public that NNPC Ltd. is working diligently with relevant stakeholders to resolve distribution, evacuation, and logistics challenges, promising a swift return to normalcy.
The NNPC’s journey to profitability has been nothing short of extraordinary. After posting a loss of N803 billion in 2018, the company embarked on a steady path to recovery, culminating in its first-ever profit of N287 billion in 2020. This upward trajectory continued with profits of N674.1 billion in 2021 and N2.548 trillion in 2022. The N3.297 trillion profit recorded for 2023 is a testament to the company’s relentless pursuit of excellence and its strategic role in Nigeria’s energy sector.
As NNPC Limited continues to evolve in the post-PIA landscape, its financial success not only reflects its operational prowess but also its pivotal role in driving Nigeria's economic growth and ensuring energy stability for the nation.
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