NNPC posts N3.3tn net profit, declares N2.1tn dividend for shareholders

The Nigerian National Petroleum Company Ltd (NNPCL) has demonstrated remarkable profitability, achieving a Profit After Tax of N3.3tn for the 2023 financial year. 

NNPC, Olufemi Soneye, disclosed this in a statement on Monday showing the company's Audited Financial Statements. 

This figure reflects a significant increase of N749bn from the N2.54tn reported in the previous financial year, 2022. 

Additionally, the company has announced a dividend of N2.1tn for its shareholders.

The Executive Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan said that with improvements witnessed as a result of the renewed vigor in the war against crude oil theft and pipeline vandalism, NNPC Ltd is targeting 2 million barrels per day crude oil production by the end of the year.

On the current fuel queues in parts of Lagos and the FCT, the Executive Vice President, Downstream, Mr. Dapo Segun appealed for understanding from Nigerians, saying that the Company is working with relevant stakeholders to address the distribution, evacuation and logistics challenges.

Chief Financial Officer of the Company, Mr. Umar Ajiya said that the release of the AFS is a testament to the Company’s commitment to transparency and accountability.

“Our fiscal performance reflects both strategic foresight and operational resilience. Despite inherent challenges of our operational and economic environment, we have improved the productivity and the financial performance of this great company,” Ajiya stated.

Ajiya added that posting such impressive returns demonstrates NNPC Ltd’s commitment to sustaining profitability and supporting the attainment of national energy security as stipulated by the Petroleum Industry Act (PIA) 2021, and by extension, as expected by the Company’s shareholders.

Explaining that the NNPC Ltd will announce Initial Public offer (IPO) once the shareholders and Board make a decision, Ajiya also debunked claims on subsidy payment, saying the Company was only taking care of PMS importation shortfall between it and the Federation.

Also, the Chairman of the NNPC Ltd Board, Chief Pius Akinyelure said that the excellent performance came as the fruit of the PIA 2021, the commitment of the Board, Management and staff of the company.

Akinyelure added that the shareholders of the company have since approved a final dividend of N2.1trn in line with PIA 2021 provisions.

It would be recalled that in 2021, NNPC declared profit in its operations for the first time. From a loss position of N803 billion in 2018, it reduced the loss further down to N1.7 billion in 2019.

However, in 2020, it posted its ‘first ever’ profit of N287 billion, then in 2021, it recorded a N674.1 billion profit and in 2022, the profit grew to N2.548, an unprecedented achievement in its financial performance. The N3.297 trillion profit declared for 2023 is the highest since the Company’s inception, 46 years ago.