NNPCL operates like Saudi Arabia’s Aramco, declares N674.1 billion profit, first time in 44 years

The Nigerian National Petroleum Company Limited (NNPC) has witnessed exponential growth in the last three years, moving from a loss-making, government-control entity in 2018 to a dynamic, commercially viable conglomerate with a profit of N674.1 billion in 2021.

NNPC, which posted an N807 billion loss in 2018 and N1.7 billion in 2019, became profitable for the first time in 44 years, recording a whopping N287 billion in 2020.

NNPC remits N123 bullion to Federation Account

The profit ratio represents 183% in four years from 2018 to 2021, a significant achievement considering the drop in international crude oil prices.

Vanguard reports that the company supported its stellar performance by contributing to the Federal Account revenue for June 2023, remitting N123 billion. The amount comprises interim dividends and N42 billion 40 PSC profit oil, and compliance payment of royalties and taxes.

The development comes as President Bola Tinubu removed petrol subsidies, deregulating the downstream sector of the oil and gas sector, and released NNPC cash flow for trading purposes.

NNPC merges subsidiaries to strong units

NNPC has shut down unviable Strategic Business Units (SBUs), allowing only 21 subsidiaries.

It has also merged its oil field services, Integrated Data Services Limited (IDSL) and Frontier Exploration, to form NNPC Services Limited, EnServe, focusing on exploration, data management, and general oilfield services.

The company also simplified its shipping business with three entities, NIDAS Shipping Services, NIKOMA Shipping Services, and Marine Logistics, merged to form NNPC Shipping Company.