The Nigerian National Petroleum Company Limited (NNPCL) says it has committed 221,000 barrels of crude oil per day to settle its $6.55 billion debt accumulated in 2023.
This is according to the company’s latest released audited financial statements.
The financial report, disclosed during a press briefing in Abuja on Monday, did not specify the duration over which these crude supplies would be made to the debt holders.
The breakdown of the debt includes $1 billion for the rehabilitation of the Port Harcourt Refinery, $1 billion for acquiring a stake in the Dangote Refinery, $3.3 billion for foreign exchange stabilization, $950 million for general corporate purposes, and $300 million for acquiring Oil Mining Leases (OML) 86/88.
NNPCL’s financial statement revealed a total revenue of N23.99 trillion for 2023, with total assets valued at N246.8 trillion. The company recorded a gross profit of N7 trillion, while operating profit was N4.34 trillion. Profit before tax stood at N5.98 trillion, with profit after tax at N3.3 trillion.
During the briefing, the chairman of NNPC Limited’s Board, Pius Akinyelure announced that the company achieved a profit after tax of N3.3 trillion for the 2023 fiscal year, with a dividend payout of N2.1 trillion to shareholders.
Umar Ajiya, NNPC’s chief financial officer, noted that the company paid N2.15 trillion in royalties from its operations, while taxes, levies, and statutory deductions amounted to N2.6 trillion for the period. He emphasized that NNPC’s financial performance reflects both strategic foresight and operational resilience, despite the challenges posed by its operating environment.
Ajiya also mentioned that NNPC Ltd is considering an Initial Public Offering (IPO), with further details to be announced once the board and shareholders reach a decision.
“We achieved profitability in 2019 and continued to grow, with profits reaching N287 billion in 2020, N674 billion in 2021, and N2.5 trillion in 2022. Our assets also grew significantly, reaching N246 trillion in 2023, driven by investments and asset transfers,” Ajiya explained.
He highlighted that NNPC’s total assets have more than doubled since 2022, largely due to investment activities and currency translation effects.
The company’s cash and bank holdings at the end of 2023 stood at N7.7 trillion, with an interim dividend of N536 billion paid during the year and a final dividend of N2.1 trillion declared last Friday.
In her remarks, Oritsemeyiwa Eyesan, executive vice president of NNPC Upstream, stated that the company is targeting a daily crude oil production of two million barrels by year-end, citing improvements from ongoing efforts to combat crude oil theft and pipeline vandalism.