The Nigerian National Petroleum Company Limited (NNPC) announced a record profit of N2.548tn in 2022, marking its “highest profit since inception.” The state-owned oil corporation revealed this financial milestone as part of its annual financial performance report. NNPC, established in 1977, operates as the largest asset holder within the Nigerian oil and gas industry and has become commercially driven following the implementation of the Petroleum Industry Act in August 2021.
In a concise document, NNPC outlined its financial trajectory, indicating a loss of N803bn in 2018, followed by a N1.7bn loss in 2019. The company experienced a turning point in 2020 with a profit of N287bn, and by 2021, the profit had increased to N674.1bn. The latest report for 2022 marks a significant surge, reaching the unprecedented figure of N2.548tn.
Mele Kyari, the Group Chief Executive Officer of NNPC, had previously stated the expectation of over N2tn in corporate profit for 2022. The passage of the Petroleum Industry Act in 2021 contributed to the increased profitability margins, transforming the company’s financial position from a loss of N803bn in 2018 to a profit of N674bn in 2021.
In addition to the financial report, NNPC disclosed that it uncovered 52 illegal refineries in the Niger Delta region over the past week. The company reported the destruction of these illegal facilities and highlighted its ongoing efforts to combat oil theft and pipeline vandalism. The past week also saw the discovery of 32 illegal pipeline connections, the removal and repair of illegal connections along the central corridor in the Niger Delta, and the confiscation of vehicles and wooden boats transporting stolen crude oil.
NNPC emphasized its commitment to fighting oil theft and vandalism, with 17 suspects arrested during this period. The company’s efforts align with its determination to curb illegal activities in the oil and gas sector and promote sustainable practices within the industry.
