Dipo Olowookere
By Dipo Olowookere
For the first time in the 44-year history of the Nigerian National Petroleum Corporation (NNPC), a net profit has been declared.
President Muhammadu Buhari, who doubles as the Minister of Petroleum Resources, said on Thursday, August 26, 2021, that the agency reported a post-tax profit of N287 billion in the 2020 financial year.
Mr Buhari announced the results of the state-owned oil agency in Abuja today after a statutory annual audit exercise for the year 2020, a statement issued on Thursday evening by Mr Femi Adesina, Special Adviser to the President on Media and Publicity, disclosed.
He said the corporation in the past two financial years reduced the losses recorded by the organisation and last year, bounced to profitability, commending the team for the feat.
“I am pleased to announce the declaration of profit after tax of N287 billion) in [the] year 2020 by the NNPC. This 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 [a] 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 NNPC 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,” the President was quoted as saying by Mr Adesina.
Mr Buhari, in the statement, congratulated “the board, management and staff of the corporation and look forward to greater value creation for the Nigerian people.”
The NNPC, which is an agency of the government, will become a commercial entity in the next six months following the signing of the Petroleum Industry Act (PIA) into law by the President about 10 days ago.
