NNPC cuts losses by N801.3bn in 2019

The Nigerian National Petroleum Corporation (NNPC) has released its 2019 Audited Financial Statement (AFS) with 99.7% reduction in its loss profile from 803 billion in 2018 to 1.7bn in 2019.

This is coming barely five months after publishing its 2018 AFS, a statement by the corporation’s spokesman, Dr. Kennie Obateru, said.

NNPC Chief Financial Officer (CFO) Mr. Umar Ajiya said the latest report will be published on the corporation’s website in keeping with management’s commitment to transparency and accountability and in consonance with the principles of the Extractive Industries Transparency Initiative (EITI) to which it is a partner.

Giving further insight into the 2019 AFS, the CFO disclosed that general administrative expenses also witnessed a 22% dip from 894bn in 2018 to 696bn in 2019.

According to Ajiya, majority of the subsidiaries posted improved performance; namely, the Nigerian Petroleum Development Company Limited (NPDC) which recorded 479bn profit in 2019 compared to 179bn in 2018 representing 167% increase; the Integrated Data Sciences Limited (IDSL) that recorded 23bn profit in 2019 compared to 154 million in 2018 representing 14,966% increase; and the Petroleum Products Marketing Company (PPMC) which recorded 14.2bn profit in 2019 from 9.3bn in 2018 representing 52% increase.

However, the refineries maintained the same loss level as in 2018 but that is expected to reduce significantly in 2020 due to cost optimization drive, he said.