By YANGE IKYAA
The Nigerian National Petroleum Corporation
(NNPC) has for the third consecutive year published its audited financial statement.
The corporation posted the audited results on its website on Wednesday after which it also released a statement announcing its action. This is the third consecutive year that the NNPC is publishing its audited financial statement, having previously done so for 2018 and 2019.
The latest move marks a follow-up on President Muhammadu Buhari’s recent directive, while making the
declaration of a N287 billion profit after tax (PAT) for the year 2020.
It would be recalled that while announcing the outstanding feat a little over two weeks ago,
President Buhari, who is also the minister of petroleum resources, said “I have further directed the Nigerian National Petroleum Corporation to timely publish the audited financial statement in line with the requirements of the law and as follow-up to our commitment to ensuring transparency and accountability by public institutions.”
Among the highlights of the 2020 audited financial result is NNPC’s
group profit that rose from a loss position of N1.7 billion in 2019 to a profit of
N287 billion in 2020, an achievement recorded for the first time in 44 years.
The group managing director of NNPC, Mallam Mele Kyari, had at various times attributed the profitable turnaround to aggressive cost cutting, automation of operational systems, and renegotiation of contracts downwards by about 30 per cent, among other tough measures.
Further highlights of the audited financial statement revealed that while the corporation’s group financial
position increased in total current assets by 18.7% compared to that of 2019, its
total current liabilities increased by 11.4% within the same period.
The group’s working capital remained below the line at N4.56 trillion in 2020 as
against N4.44 trillion in 2019, the AFS further revealed.
Similarly, NNPC’s group revenue for the 2020 financial year stood at
N3.718 trillion as against N4.634 trillion in 2019, a decrease that could be attributed to the decline in the production and price of crude oil due to the global impact of the
Covid-19 pandemic.
