Refineries post N154bn loss in NNPC audited accounts

The Nigerian National Petroleum Corporation (NNPC) has published its audited financial statements for 2018 online in an effort to enhance the openness around its operations.

NNPC has come under attacks for years because its operations were shrouded in secrecy as only its unaudited financial reports were published. The statements posted on the corporation’s website on Sunday were endorsed by Mele Kyari, its Group Managing Director/Chief Executive Officer.

NNPC similarly published online the audited accounts of its 20 subsidiaries and business divisions for the first time.

According to the statements, National Petroleum Investment Management Services (NAPIMS) is the group’s most profitable unit as it recorded revenue of N5.04 trillion in 2018 and profit of N1.01 trillion compared to a loss of N1.65 trillion reported the year before.

The total asset managed by NAPIMS, the report said, is N18.6 trillion with the oil and gas component accounting for N14.2 trillion.

Read also: It remains a mystery why Nigeria keeps importing fuel —NNPC boss, Kyari

The oil production division, the Nigerian Petroleum Development Company, posted a Profit After Tax of N179 billion in the year under review compared to the N157 billion it made in 2017.

However, the corporation’s three refineries recorded a combined loss of N154 billion with the Kaduna refinery reporting zero revenue for the year.

The Pipeline Product Marketing Company, the supply and refined petroleum products marketing subsidiary of the NNPC, posted a revenue of N29.5 billion in 2018 relative to the N113 billion it reported in 2017.

Its after-tax profit for 2018 stood at N9.3 billion as against a loss of N27 billion recorded the year before.

“Over the years, NNPC has been rated as a cesspool, providing slush funds for politicians. They have been trying to change the perspective since 2015 with the publication of monthly reports and the 2018 audited statements is also a step forward,” said Oluseun Onigbinde, Director at Lagos-based BudgIT, a civic group that lobbies for government transparency.

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