In a move considered unprecedented in the annals of the Oil and Gas Industry in
the Country, the Nigerian National Petroleum Corporation (NNPC) has made
public a no holds barred 2018 Audited Financial Statements (AFS) of its 19
Strategic Business Units (SBUs) and a Corporate Services Unit (CSUs) at the
The release of the AFS was in compliance with the directive of President
Muhammadu Buhari and his Administration’s commitment to accountability and
transparency by way of full disclosures of government agencies’ transactions. It is
also in accordance with International Financial Reporting Standards, apart from
being a requirement for the Companies and Allied Matters Act (CAMA).
The 2018 reports which posted positives in many of the National Oil Company’s
Upstream going concerns, however, recorded low figures in the Midstream,
unsurprisingly because of the long downtime of the nation’s four refineries in Port
Harcourt, Warri and Kaduna.
The corporation has commenced the process of a comprehensive diagnostic
assessment of the refineries that would culminate into their thorough rehabilitation,
starting with Port Harcourt and Warri Refineries. In addition, proposals to change
the refineries’ business models to that similar to Nigeria Liquefied Natural Gas
Limited’s (NLNG) which has been a success story over the years is also afoot.
In all, 19 entities of the corporation registered under the Companies and Allied
Matters Act (CAMA) as amended and the National Petroleum Investment
Management Services (NAPIMS), to reflect the finances of Joint Venture
Operations, have their books published on the NNPC Website. The 2019 Audited
account report is already being prepared and expected to be ready in a couple of
A perusal of the AFS for the year ended December 31, 2018 of the National
Engineering and Technical Company (NETCO), an Upstream subsidiary of the
corporation indicated a profit after tax of over N4.5billion, a remarkable
improvement from the previous year record of over N2.4billion.
The AFS of the Nigerian Petroleum Development Company (NPDC) indicated a
profit after tax of over N179.1billion which comes as significant improvement
from the 2017 profit of over N157.4billion.
During the period, NPDC posted a revenue of over N1.3trillion compared to the
2017 revenue of over 882.3billion. The AFS indicated that the NNPC flagship
subsidiary has a total asset of over N5.3trillion within the period, compared to the
N4.007trillion asset recorded in 2017.
On its part, the Nigeria Gas Company (NGC) recorded a profit after tax of over
N13.2billion with a comprehensive annual income of about N19.9billion. The AFS
also valued the NGC total assets in 2018 at over N251.7billion compared to
N196billion in 2017.
In the Downstream Sector, the Petroleum Products Marketing Company (PPMC),
for the first time, recorded gross profit of N24.3billion in the year under review,
while NNPC Retail Limited posted profit after tax of over N2.2billion compared to
the N1.8billion recorded in the preceding year.
The statement also indicated that National Petroleum Investment Management
Services (NAPIMS) posted revenue of N5.04trillion in 2018 and profit of
N1.01trillion, with total assets under the portfolio of the service unit valued at
N18.6 trillion. NNPC and its partners are considering modalities to cap crude oil
cost per litre at $10 by 2021 in order to ensure that Nigeria benefits more from the
nation’s hydrocarbon resources.
The Integrated Data Services Limited (IDSL), an NNPC Subsidiary in charge of
acquisition and interpretation of seismic data, posted a total comprehensive income
of about N3.2billion with profit of about N154million within the period.
In all, the audited financial statements of the 19 subsidiaries and the corporate
service unit (NAPIMS) were laid bare in a novel move to enshrine high level
transparency and accountability in the National Oil Company.
The key achievements recorded in as presented in the Group’s Financial
Performance for the year include:
Recapitalization of PPMC through transfer of the negative revenue reserve
to CHQ NNPC achieve a second straight year without incurring additional cash call
arears and Repayment of over $2.7billion of total cash call arrears due to Industry
These entities include: NAPIMS, IDSL, NPDC, NETCO, Port Harcourt Refining
Company (PHRC), Warri Refining and Petrochemicals Limited (WRPC), Kaduna
Refining and Petrochemicals Company (KRPC), Duke Oil Services (UK) Limited,
Duke Oil Incorporated, Duke Global Energy Investment Limited, The Wheel
Insurance, Petroleum Products Marketing Company (PPMC), Nigerian Pipelines
and Storage Company (NPSC), NNPC Retail Limited and NIDAS UK Agency.
Others include; NIDAS Shipping Services, NIDAS Marine FS, Nigerian Gas
Marketing Company (NGMC), Nigerian Gas Company (NGC), and N-Gas.