The Nigerian National Petroleum Corporation (NNPC) has recorded a net profit of N287 billion, halting a 44-year drought in a major recovery hailed on Thursday by President Muhammadu Buhari.
In a statement issued by Special Adviser to the President on Media and Publicity, Mr Femi Adesina, Buhari noted that the net profit of N287 billion was the first of its kind in the corporation’s 44 years history.
While citing that the agency’s losses were reduced from N803 billion in year 2018 to N1.7 billion in year 2019, Buhari, who doubles as substantive Minister of Petroleum Resources, also directed the corporation’s management to henceforth ensure timely publication of its audited accounts.
According to the statement, the declaration of profit by the NNPC was in fulfilment of an earlier pledge by the Federal Government to publicly announce the financial position of the NNPC,
The net profit of N287 billion was 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 decla ration 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 maximisation of value for the Nigerian people from their natural resources.
“I have further directed the Nigerian National Petroleum Corporation 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,” Buhari stated.
Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari said the corporation’s board of directors would take decision about any dividend payment.
“It will be the decision of the board of directors to either add this to the capitaliszation of the company. It is to decide what proportion of it we are going to declare as dividends.
“Subsequently, there will be an engagement to take that decision,” Kyari said.
Speaking virtually, Minister of State for Petroleum Resources, Chief Timipre Sylva described the feat as historical.
Kyari, however, attributed the achievement to cutting of cost, transparency and accountability.
He said he built on the platform he inherited cutting cost and automating the NNPC systems.