Nigerian National Petroleum Company (NNPC) Limited’s net debt has increased by almost seven-fold to N156.4 trillion in 2023 from N22.7 trillion in 2022.
BusinessDay analysis reveals that in value terms the fully-owned government company recorded N133.7 trillion more in net debt in 2023 as compared to the previous year.
Further analysis reveals that NNPC Limited’s lease liabilities increased to N400.9 billion from N6.47 billion and trade and other payables surged to N163.7 billion from N25.03 billion.
After-tax profit surged to N3.29 trillion from N2.52 trillion while revenue from contracts with customers surged to N23.99 trillion from N8.82 trillion.
Umar Ajiya, chief financial officer of NNPC Limited said in a statement that NNPC Ltd will announce Initial Public offer (IPO ) once the shareholders and board make a decision.
He also debunked claims on subsidy payment, saying the company was only taking care of PMS importation shortfall between it and the Federation.
The firm’s selling and distribution expenses surged to N132.6 billion from N22.89 billion. General and administrative expenses grew to N2.99 trillion from N1.7 trillion.
NNPC Limited’s net impairment reversal on financial assets grew to N426.8 trillion from N311.1 trillion.
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Other income grew to N1.96 trillion from N1.17 trillion during the period reviewed.
Cash and cash equivalents surged to N7.72 trillion from N2.32 trillion during the period.
BusinessDay’s findings has revealed that petrol is expected to sell at N1,300 per litre, largely due to the cash crunch that has hit the Nigerian National Petroleum Company (NNPC) Limited.
The NNPC, which is the sole importer of petrol into Nigeria, has consistently denied subsidising the cost of PMS but refused to disclose the landing cost of the product. However, it admitted on Sunday that it is facing a financial strain due to the supply costs of the PMS.
Bayo Onanuga, the special adviser to President Bola Tinubu on Information and Strategy said in a statement made available on social media X on Tuesday that meanwhile, the presidency has for the umpteenth time denied a return of the gasoline subsidy regime, the state-owned oil company can no longer keep up with its ‘generous disposition’
“That generous disposition by NNPC Limited, backed by a compassionate president unwilling to let the people suffer, has been under threat for months, because of the rising cost of crude and the devalued Naira,” Onanuga stated.
He said the NNPC cried out recently because it can no longer sustain the price differential on its balance sheet without becoming insolvent, while adding that the situation has greater implications for the ability of the three tiers of government to function as the NNPC has failed to pay into the Federation Account, the money that should go to the government.
The Nigerian National Petroleum Company Limited is a state oil company in Nigeria. Still a fully-owned government company, it was transformed from into a limited liability company in July 2022. NNPC Limited is the only entity licensed to operate in the country’s petroleum industry.
