Malam Mele Kyari, Group Managing Director of NNPC

NNPC consolidates gains, publishes 2020 Audited Financial Statements

*In compliance with the President Muhammadu Buhari’s directive, the Nigerian National Petroleum Corporation has fulfilled a very important statutory requirement by publishing its Audited Financial Statements

Isola Moses | ConsumerConnect

In line with President Muhammadu Buhari’s recent announcement of the declaration of N287billion (Naira) Profit After Tax (PAT) in  2020 by the Nigerian National Petroleum Corporation (NNPC), the state oil firm has consolidated the remarkable achievement as it has published the Audited Financial Statements (AFS) on the Corporation’s official Web site.

Recalled that while announcing the outstanding feat a little over a fortnight ago, President Buhari, who is also the country’s Minister for Petroleum Resources, had said: “I have further directed the Nigerian National Petroleum Corporation to timely publish the Audited Financial Statements in line with the requirements of the law and as follow up to our commitment to ensuring transparency and accountability by public institutions.”

Mr. Garba Deen Muhammad, Group General Manager, Group Public Affairs Division of NNPC, in a statement said that in compliance with the President’s directive, therefore, the Corporation has fulfilled this very important statutory requirement by publishing its Audited Financial Statements today (Wednesday, September 8, 2021).

The statement noted among the highlights of the 2020 AFS is the Corporation’s group profit which rose from a loss position of N1.7billion in 2019 to a profit of N287billion in 2020, for the first time in 44 years.

Muhammad stated that Malam Mele Kyari, Group Managing Director (GMD) of NNPC, had at various times since the President’s declaration of profit, attributed the turnaround to aggressive cost cutting, automation of the system and renegotiation of contracts downwards by about 30 percent, among other tough measures.

Further highlights of the AFS revealed that while the Corporation’s group financial position increased in total current assets by 18.7% compared to that of 2019, its total current liabilities increased by 11.4% within the same period, said the statement.

The group’s working capital remained below the line at N4.56trillion in 2020 as against N4.44trillion in 2019, the AFS further revealed.

Likewise, the Corporation’s group revenue for the 2020 financial year stood at N3.718trillion, as against N4.634trillion in 2019, a decrease that could be attributed to the decline in the production and price of crude oil due to the global impact of the novel Coronavirus (COVID-19) pandemic.

According to NNPC, this is the third consecutive year that the Corporation is publishing its AFS, having done so for 2018 and 2019 respectively.

The full document of the NNPC 2020 AFS is available on the Corporation’s Web site at https://www.nnpcgroup.com/Pages/Home.aspx.

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