In a significant financial development, the Nigerian National Petroleum Corporation (NNPC) has reported a net profit of ₦3.297 trillion for the 2023 fiscal year, marking a 28% increase from the previous year’s ₦2.548 trillion. The announcement, made on August 19, 2024, highlights the corporation’s resilience and strategic advancements despite a challenging economic landscape.
The impressive profit figures were disclosed alongside the company’s 2023 Audited Financial Statement (AFS), which underscores NNPC’s commitment to transparency and accountability. Chief Financial Officer Umar Ajiya attributed the strong fiscal performance to strategic foresight and operational resilience, emphasizing the company’s dedication to sustaining profitability and supporting national energy security as outlined by the Petroleum Industry Act (PIA) of 2021.
In related developments, President Tinubu has approved the suspension of interim dividends for 2024 as part of measures to bolster the organization’s cash flow. This decision aligns with the growing financial strain on the corporation, exacerbated by the escalating petrol subsidy bill, which NNPC estimates will reach ₦6.884 trillion by December 2024.
Despite the suspension of interim dividends, NNPC’s Board Chairman, Chief Pius Akinyelure, affirmed that the shareholders have approved a final dividend of ₦2.1 trillion in compliance with PIA 2021 provisions. Akinyelure credited the company’s success to the implementation of the PIA, as well as the dedication of the Board, Management, and staff.
Additionally, Executive Vice President of Upstream, Mrs. Oritsemeyiwa Eyesan, announced that NNPC Ltd aims to achieve a crude oil production target of 2 million barrels per day by the end of the year. This ambitious goal is bolstered by renewed efforts to combat crude oil theft and pipeline vandalism.
However, NNPC’s financial outlook is challenged by the soaring costs of petrol subsidies and foreign exchange pressures. The corporation had earlier informed President Tinubu in June 2024 of the unsustainable nature of the subsidy payments, seeking urgent government intervention.
The Chief Corporate Communications Officer of NNPC, Olufemi Soneye, was unavailable for comment regarding the specifics of the withheld dividends. The company’s financial strategy reflects its ongoing efforts to manage the dual pressures of rising operational costs and subsidy obligations while striving to maintain robust financial health.
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