The Group Executive Director, Finance and Accounts of NNPC, Umar Ajiya has said that Nigerian National Petroleum Corporation is expected to make over N300bn as Profit in 2021.
Ajiya made this known during an interview with TVC News on Friday where he gave the facts behind the N287bn profit in 2020 and provides some insight into why NNPC enjoys a special status relative to other revenue-generating agencies of government.
Umar said that as of the end of June this year, the Corporation had made a Profit of N200bn, stating that with various measures being taken to optimise operations, the profit figure is expected to hit N300bn by the end of the year.
He explained that the Corporation has been able to reduce wastages in its operations, adding that this was why it was able to declare its first ever profit of N287bn in 2020.
The Group Executive Director said, “We have optimised our costs by automating our business processes. We don’t do paper work at the NNPC and this has helped us to reduce cost.
“We eliminate wastages and optimise our staff. The refineries were shut down and the engineers moved to other areas and this has helped in reducing costs.”
He said while the COVID-19 pandemic affected crude oil prices and demand negatively, the NNPC was able to survive through a strategy that involves the reduction of production cost.
The implication of this is that the NNPC was able to drive down costs of sales by 15.11 per cent from N2.6trn in 2019 to N2.2trn in 2020.