“NNPC Pledges 221,000 BPD for $6.6B Debt Repayment”
The Nigerian National Petroleum Company Limited (NNPCL) has committed 221,000 barrels of crude oil per day to offset its $6.55 billion debt, as revealed in its 2023 audited financial statements. The debt, incurred during the year, is part of NNPCL’s broader financial obligations, including $1 billion for rehabilitating the Port Harcourt Refinery, $1 billion for acquiring an equity stake in the Dangote Refinery, $3.3 billion for forex stabilization, $950 million for general corporate purposes, and $300 million for acquiring oil mining leases (OML 86/88).
NNPCL’s financial performance in 2023 was notable, with the company generating a total revenue of N23.99 trillion and posting a gross profit of N7 trillion. After operating expenses, the profit before tax was N5.98 trillion, and the profit after tax stood at N3.3 trillion. The company also declared a dividend of N2.1 trillion for shareholders.
Pius Akinyelure, chairman of the NNPC Limited Board, highlighted that the company’s profit has seen consistent growth since 2019, reflecting strategic foresight and resilience in a challenging operational environment. Despite significant financial obligations, NNPCL has managed to improve its productivity and financial performance, with plans to increase crude oil production to two million barrels per day by the end of the year, thanks to efforts to combat crude oil theft and pipeline vandalism.
Chief Financial Officer Umar Ajiya noted that NNPCL paid N2.15 trillion in royalties and N2.6 trillion in taxes, levies, and statutory deductions in 2023. The company’s assets have also seen substantial growth, doubling to N246 trillion in 2023, driven by investments and the transfer of joint venture assets.
Looking ahead, NNPCL is preparing for an initial public offering (IPO), which will be announced once the shareholders and board make a decision. This move is part of NNPCL’s broader strategy to strengthen its financial position and enhance transparency as it transitions into a fully commercial entity.
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