NNPC breaks 44-year jinx, declares N287bn profit

For the first time in the 44-year history of the Nigerian National Petroleum Corporation (NNPC), the state-owned oil firm has made profit.

President Muhammadu Buhari, who doubles as Minister of Petroleum Resources, announced a Profit After Tax of N287 billion by the NNPC in 2020.

Buhari said: “I am pleased to announce the declaration of Profit After Tax of N287 billion in Year 2020 by the NNPC. This is sequel to the completion of the statutory Annual Audit exercise for Year 2020.

“The NNPC losses were reduced from N803 billion in year 2018 to N1.7 billion in year 2019 and the eventual declaration of Net Profit in 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.

“I congratulate the Board, Management and Staff of the Corporation and look forward to greater value creation for the Nigerian people.”

Meanwhile, the Group Managing Director of NNPC, Mallam Mele Kyari, has given an insight into the measures adopted by his management to achieve the feat.

Speaking at a press conference at the NNPC Towers, Abuja, the GMD attributed the turn-around of the Corporation from a loss of ₦803 billion in 2018 to profit of ₦287 billion in 2020 to the aggressive implementation of cost-cutting measures, improved efficiency through business automation, emphasis on commercially-focused investments and non-interference in the management of the Corporation from any quarters.

The GMD also added that the Corporation saved a lot of cost through contract renegotiation by up to 30% on the heels of the COVID-19 pandemic, introduction of technology that drastically cut travel cost through reduction in in-person meetings and the general automation of processes that enhanced efficiency across the group’s businesses.

He said Management’s focus on the prioritization of investment and staff welfare also helped in boosting the Corporation’s overall productivity and bottom line.