Audit report: N287bn profit huge, no losses declared – kyari

The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) Malam Mele Kyari says that N287 billion profit after tax made by the corporation in 2020 was huge but not sufficient for the nation.

Kyari disclosed this while briefing newsmen in Abuja, on Thursday.

It was reported that President Muhammadu Buhari announced a Profit after Tax of N287 billion by the Nigerian National Petroleum Corporation (NNPC) in 2020.

“This progress wouldn’t have been possible if we didn’t have the support of the president who steers the affairs as the Minister of Petroleum Resources.

“His consistent review of what we do both at the Board and management to ensure that the company will do well and must be accountable to Nigeria people brought about this milestone.

“For NNPC family, this is a very proud moment for us and for our shareholders because we no longer declare losses.

“We moved from loss of N803 billion in 2018, reduced to N1.7 billion in 2019 and in 2020, we are making profit after tax of N287 billion, this is in no doubt a huge progress but no means sufficient.

“This is the largest corporation in Africa, we hold the largest reserve of oil and gas in the whole of Africa and many countries in the world our potentials are bigger than this.

“This company is a trillion naira profit company,” he said

He noted that with the continued support of the president and the Minister of state for petroleum Resources, the corporation would be taken to the next level to serve Nigerians better.

He further commended the board members, union leaders and the management team for the support and team work that brought about the milestone.

“We are no longer a liability in this country, we are serving people in different ways but most importantly we are adding physical value to the fortunes of this country.” he added.

Commenting on how the corporation was able to make profit, he said that the process started in 2015 with president Muhammadu Buhari’s administration, with the decision to cut cost, be more efficient and ensure transparency and accountability.

He said that the piloting of the president gave the corporation the opportunity to do things differently adding that continuation of the ideas of the past NNPC GMD and new concept helped to arrived at the huge result.

“In the fiscal year 2020, we engaged all our contractors and insisted on cutting cost at least 30 per cent, this worked and we happen to pull down most of our procurement by 30 per cent.

“We saw the opportunity to be more efficient by automating our system and processes that made thing work faster and ultimately reduced logistic cost that added additional cost to our business, Borrowing at lower rate in 2020 also helped us to reduce cost of production,” he said

The GMD further said that the Board of directors would decide on payment of dividends or to pass the profit to capitalization of the company noting that Petroleum Industry Act (PIA) made clear how the NNPC would be going forward.

In his remark, the Minister of State for Petroleum Resources, Chief Timipre Sylva, said that it was the era of achievement for the corporation and sector at large.

“This is a season of so many achievements, we just achieved the PIA and now we are making profit as a company.

“This is the first time this is happening in 43 years as a corporation and I am proud of you, the management and staff of the corporation.

“This is a monumental milestone, the first time NNPC is making profit,” he said.