NNPC Declares First Time Profit in 44 Years, Says Buhari
The Nigerian National Petroleum Corporation, NNPC, declares N287 billion profit after tax in 2020, President Muhammadu Buhari announced Thursday. Buhari, who doubles as Minister of Petroleum Resources, made the declaration in a statement by his Special Adviser on Media and Publicity, Mr Femi Adesina, on Thursday in Abuja.
This is the first time in 44 years that the state oil corporation will turn a profit.
However, the Nigerian President said the declaration was in fulfilment of an earlier pledge by the Federal Government to publicly announce the financial position of the NNPC.
The results come at the time the Nigerian government sign the controversial petroleum industry bills into law, targeting to unbundle the state oil enterprises for an effective administration of the oil sector.
NNPC’s net profit was the first in the 44-year history of the establishment, according to the Nigerian President.
“I am pleased to announce the declaration of Profit after Tax of Two Hundred and Eighty-Seven Billion Naira (N287 billion) in the financial year 2020 by the Nigerian National Petroleum Corporation. This result is sequel to the completion of the statutory Annual Audit exercise for the year 2020.
”The NNPC losses were reduced from N803 billion in the year 2018 to N1.7 billion in the year 2019 and the eventual declaration of Net Profit in the year 2020 for the first time in its 44-year history.
“This development is consistent with this administration’s commitment to ensuring prudent management of resources and maximization 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.
“I congratulate the Board, Management and Staff of the Corporation and look forward to greater value creation for the Nigerian people,” he said.
NNPC, which operates joint production ventures with Western oil majors and is also involved in refining and marketing petroleum products, made losses of N803 billion in 2018 and N1.7 billion in 2019 but has otherwise released few details of its finances for most of its history.
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NNPC Declares First Time Profit in 44 Years, Says Buhari
