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Worries as NNPC’s liabilities hit N4.4tn higher than its assets –Report

NNPC to build two new condensate refineries

The liabilities of the Nigerian National Petroleum Corporation (NNPC) as a group outweighed the value of its assets by N4.4 trillion in 2019, the recently issued audited financial statements of the state-owned oil and gas firm for 2019 revealed.

Meanwhile, the liabilities of the NNPC as a company under the group surpassed the value of its assets in the same year by N1.1 trillion.

The auditors – PriceWaterhouseCoopers, SIAO Partners and Muhtari Dangana & Co – stated their worry on the possibility of the NNPC continuing to exist as a going concern in light of extent of the liability of the organisation, which has been racking up losses for years on end.

They stated that the group and corporation’s ability to continue as a going concern is in limbo while shedding light on the material uncertainty pertaining to its continued existence.

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“We draw attention to note 42 of the consolidated and separate financial statements, which indicate that the group recorded a net loss of N1.8bn (corporation: net loss of N107.8bn) during the year ended 31, December 2019.

“As at that date, the group’s current liabilities exceeded its current assets by N4.4tn (corporation: N1.1tn).”

They went further to say that these realities together with other issues “indicate that a material uncertainty exists that may cast significant doubt on the group and corporation’s ability to continue as a going concern.”

On Thursday, NNPC announced a 99.7 per cent fall in its loss for 2019 in its audited financial statements, while also reporting a 22 per cent cut in its general administrative expenses from N894 billion to N696 billion.

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