In a move that could be seen as a radical breakaway from its old ways of operation and a testimony to its avowed philosophy of transparency and accountability in business practice, the Nigerian National Petroleum Corporation (NNPC), has published the Audited Financial Statements (AFS) for the year ended 2020 on its official website.
According to a statement by the Group Spokesperson of the Corporation, Garba Deen Muhammed, the decision to publish its financial statement is in response to the directive of President Muhammadu Buhari, that NNPC should timely publish the Audited Financial Statements in line with the requirements of the law and as follow up to the administration’s commitment to transparency and accountability by public institutions.”
RovingNaija recalls that a fortnight ago, in keeping with the order to consolidate on its transparency and integrity mantra, President Buhari’s announced the declaration of two hundred and eighty seven billion Naira (N287bn) Profit After Tax (PAT) for the year 2020 by the NNPC.
Following the landmark achievement, the Group Managing Director of the NNPC Mallam Mele Kyari, had at various times attributed the turnaround in its business fortunes to aggressive cost cutting, automation of the system and renegotiation of contracts downwards by about 30 per cent, among other tough measures.
The new regime of tough measures spearhead by Kyari has led to positive results chief among which is highlighted in the 2020 AFS where the Corporation’s group profit rose from a loss position of N1.7billion in 2019 to a profit of N287bn in 2020, for the first time in 44 years.
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.
The group’s working capital remained below the line at N4.56trillion in 2020 as
against N4.44trillion in 2019, the AFS further revealed.
Similarly, 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
Covid-19 pandemic.
This is the third consecutive year that the NNPC is publishing its AFS, having done so for 2018 and 2019.
The full document of the NNPC 2020 AFS is available on the Corporation’s website.https://www.nnpcgroup.com/Pages/Home.aspx
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