By Adewale Sanyaolu
Living up to its Transparency, Accountability and Performance Excellence (TAPE) mission, the Nigerian National Petroleum Corporation (NNPC), yesterday, released its 2020 audited financial statement.
The release of the 2020 AFS follows similar feat recorded in 2018 and 2019. The NNPC for the first time in its 44 years of operation released its first AFS to the admiration of stakeholders in 2018.
Prior to the release of the 2020 AFS, the NNPC had disclosed that it recorded N287 billion Profit After Tax (PAT) in year under review
President Muhammadu Buhari, who also doubles as Minister of Petroleum Resources had while announcing the outstanding feat recorded by NNPC a little over a fortnight ago, said: “I have further directed the NNPC 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.”
In compliance with the President’s directive, the NNPC has fulfilled this very important statutory requirement by publishing its Audited Financial Statements yesterday.
The 2020 AFS reported a group profit which rose from a loss position of N1.7billion in 2019 to a profit of N287 billion in 2020, for the first time 44 years.
Group Managing Director of the NNPC, Mele Kyari, 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 per cent, among other tough measures.
The report also revealed that while the corporation’s group financial position increased in total current assets by 18.7 per cent compared to that of 2019 while its total current liabilities increased by 11.4 per cent within the same period.
The group working capital remained below the line at N4.56 trillion in 2020 as against N4.44 trillion in 2019, the AFS further revealed.
Similarly, the corporation’s group revenue for the 2020 financial year stood at N3.718 trillion as against N4.634 trillion in 2019, a decrease that could be attributed to the decline in the production and price of crude oil due to global impact of COVID-19.