NNPC Limited Generates N8.8trn Revenue In 2022 As Total Assets Hit N58.56trn

The Nigerian National Petroleum Company Limited in 2022 continues to show resilience by increasing its profitability despite the harsh operating environment that has constrained many businesses in Nigeria.

Specifically, the audited financial statement for the year ended December 2022 showed that the NNPC Limited total assets rose to N58.65trn.

This is an increase of about 260.47 per cent when compared to the N16.27trn which the total asset was in the 2021 financial period.

A breakdown of the total asset figure of N58.65trn showed that non-current assets was N37trn while the company’s current assets stood at N21.59trn as of the end of 2022.

During the period under review, the NNPCL also increased its revenue profile by 37.2 per cent from N6.42trn in 2021 to N8.81trn.

In terms of profitability, the Financial Statement revealed that the company recorded Profit After Tax of N2.52trn, representing about 274 per cent increase when compared to the N674bn it recorded in 2021.

The NNPCL’s auditors noted that for the 16-month period ending December 2022, they had no doubt that the NNPC could continue as a going concern without fear of going bankrupt.

The Auditors wrote in the account, “The financial statements have been prepared in accordance with the going concern principle under the historical cost convention.

“Nothing has come to the attention of the directors to indicate that NNPC will not remain a going concern for at least 12 months from the date of these financial statements. At this time, no significant events after the reporting date that may have an impact on going concern have been noted.”

Since the assumption of office of Mele Kyari as the NNPC Boss, the fortunes of the company have experienced remarkable progress.

Also, the enactment of the Petroleum Industry Act (PIA) 2021 had given birth to a new commercially-oriented National Oil Company that is governed by the Company & Allied Matters Act (CAMA) principles.

With the passage of the PIA 2021, NNPC Limited’s profitability margins have significantly risen, growing from a loss position of N803bn in 2018 to a profit position of N674bn in 2021.

It was Kyari’s magic wand that played out at that time making the corporation which it was known then to reduce its losses from N803bn in 2018 to N1.7bn in 2019, and the eventual declaration of a net profit in 2020.

By the 2021 financial period, the corporation’s profit grew to N674bn and before this period, the NNPC has been a loss-making entity, renowned for anomalies, undue political interference, and shades of burden.

In September 2022, the NNPCL sealed the acquisition of OVH Energy making it to add to its assets reception jetty (ASPM) with 240,000MT monthly capacity, 8 LPG Plants, 3 Lubes Blending Plants, 3 Aviation Depots, and 12 warehouses.

Also, Oando’s 380 fueling stations have been added to NNPC’s existing stations making it the largest in Africa.

Through the deal, NNPC is leveraging on Oando’s coverage across Africa to become a leading energy company.
The acquisition, under the leadership of Kyari, shows his vision to make NNPC a force in the global energy market.