N287bn Profit Still Low Compared To NNPC’s Potentials– Kyari

The Group Managing Director of the Nigerian National Petroleum Corporation, Mele Kyari, on Tuesday said that the N287bn Profit After Tax posted by the Corporation is far below its worth.

Kyari made the statement during a conversation about the Corporation’s first profit in 44 years on TVC News.

The Corporation last week announced that it made a net profit of N287bn in 2020.

The positive shift in the performance of the NNPC is coming two years after its N803bn loss in the 2018 financial year.

The figures have raised some eyebrows among critics, with Atedo Peterside, the founder of Stanbic IBTC Bank Plc and Anap Business Jets Limited referring to the figures as ‘suspicious.’

But the NNPC boss while explaining the facts behind the profit maintained that the NNPC results for the year 2020 was below the corporation’s potential.

Kyari said, “It is really shocking for any onlooker to see a company jump from losses of N803bn to profitability. This is very very practical and when we announced that we made a loss of N803bn in our 2018 accounts, we had no misgivings that this surely was a very huge loss. And we knew of course that shareholders by any consideration will be concerned that the company will lose such an amount of money.

“But we also knew that that is a very big challenge for us as a company. We can’t continue to make losses, this is a trillion naira profit making company no doubt about it.

“I’m sure many of us are aware that small scale banks are declaring PAT above N200m. It is really nothing big and no big deal for the NNPC to come out to say that they have made a profit of N287bn in a fiscal year.

“For us, this is very low and a very small number. This is potentially a trillion naira company and of course with all expectation and all resources available to us, we should not be declaring losses at any time.

“And therefore, we are happy that we have come out of that hole, that hole of coming out from N803bn (loss) in 2018 to a positive number in 2020 is a big progress.

“But that is not also magic. When you have a company of this size and this potential with all the resources available to you, clearly, there are things you can do differently.

“First of all, you need to become much more efficient by automating your system and process, you become more accountable and transparent, you cut down your cost, you become more efficient in your operations, you select your portfolios rightly so that you don’t put your money in things that will clearly bring losses to you.”

The NNPC boss said in all its procurement for the 2020 fiscal year, it bargained for a 30 per cent discount from its contractors.

He said the 2020 profit when matched against the N803bn loss of 2018 is almost an equivalent of N1trn profit.

“I can say very clearly that this is not too much, this company can actually make a trillion naira Profit After Tax,” he added.

He said that many Nigerians have doubts about the dealing of the corporation, adding that “even our partners, financial institutions, commercial partners will like to see you and know what you are doing so that they can invest in you.”

The GMD claimed that the NNPC is the only state owned petroleum corporation that publishes its monthly accounts.

“We are the only company that publishes its financial and operational performance every month anywhere in the world. No national oil company does this and the meaning of this is that we are making the scrutiny of our finances and operations open to all our shareholders particularly Nigerians and our partners,” he added.