These are indeed interesting times in Nigeria as there seem to be some disillusionment by citizens on the Buhari led APC government. It has been tale of woes, hunger poverty, insecurity and death.

While still basking in the mixed feeling of Mr. President signing Petroleum Industry Act into law amidst protest from Niger Delta Region, NNPC, Nigeria’s premier oil proprietor, sent cold shivers across the nation by announcing that it has made profit of 287 billion naira after 44 years.

Ordinarily, Nigerians should be happy that NNPC has declared profit and it means that the Firm has gone back to winning ways after decades of plundering our common patrimony.
But wait a minute; could this be true that a firm that for 44 years has not made profit, could post a whooping 287 billion?

According to SBM Report posted in August 2021, NNPC incurred a loss of N473.3billion while operating its moribund refineries between January 2015 and February 2021. The refineries as at August 1, 2021, operated at a capacity of 6.7%. NNPC posted a loss of 803 billion as at 2018.

On 19 April 2021, it was reported that the total revenue generated by the NNPC from crude oil and gas exports plunged by 45.98 per cent in 2020 amid the COVID-19-induced collapse in price and demand.

The report said Nigeria’s revenue from the exports of crude oil and gas fell to $2.62bn in 2020 from $4.85bn in 2019. Also, proceeds from the sale of domestic crude oil and gas also dropped to N1.54tn in 2020 from N1.57tn in 2019.

What magic did NNPC perform to have wiped off all the above losses to record a profit of 287 billion? I am really smelling a rat here unless NNPC proves otherwise.

What of the allegation that NNPC dipped its fingers in the Federation Cookie Jar in order to announce bumper 2020 profits? It is common knowledge that NNPC and state governors have been at loggerheads over shortfall in remittances to the federation accounts. Could it be that the said funds is what NNPC has posted as profit for 2020, a period that was ravaged by COVID-19 pandemic and businesses operated at a loss?

Doe this new profit has a thing to do with the newly signed Petroleum Industry Act? The ACT permits NNPC to retain 30% of its profit for oil exploration in the frontier basin of the North. Assuming the ACT is applied today, it means NNPC will retain over 86 billion naira of the 287 billion profits.

While I wish NNPC the best in posting more profit to better the lot of Nigerians, the Company should come clean and publish details of all dividends received by them and tell us which ones they recently diverted from the Federation to themselves. The NNPC Group should publish the subsidiary and its activities that produced this huge profit margin.

Aluu Vincent, a Policy Scientist and PhD Student is the Publisher, Naija Eye Witness News

Nah agboju profit nah!

44 year of loss making was Gospel truth. But the this turnaround is too good to be true.

Why don't you wait for them to publish the audited accounts as directed before all this analysis?

ATTAHDYE:
44 year of loss making was Gospel truth. But the this turnaround is too good to be true.

Why don't you wait for them to publish the audited accounts as directed before all this analysis?

They have to poison the minds of everyone.