October 18, 2021

Re: NNPC Missing As China, Saudi Arabia Top World’s Biggest Oil Revenue Earners In 2021

2 min read

Recently, a National Newspaper reported that the Nigerian National Petroleum Corporation has failed to make the latest list of the world’s highest income-grossing oil companies, both nationally-run and privately-owned.

The list was compiled by offshore technology from the organizations’ 2020 audited financial statements.

The latest list of the world’s highest income-grossing oil companies showed that although a number of the 10 highest-earning oil and gas companies in 2021 lost billions in 2020 because of the COVID-19 pandemic and trade war between Russia and Saudi Arabia, big deals and discoveries were still made, further aided by recovering oil prices from the last quarter of last year.

It will be recalled that the Nigerian National Petroleum Corporation known for loss making in the past 44 years of its existence, under the Management of Mal Mele Kolo Kyari declared a N287 billion Profit After Tax (PAT) for the Year 2020.

Unlike other national oil companies, NNPC has been a loss-making entity, renowned for anomalies, undue political interference and shades of burden.

It will be recalled that immediately Mal Mele Kolo Kyari resumed office on July 8, 2019 as the Group Managing Director of the NNPC, the Corporation started publication of its financial operations. Last year, the group published its first audited statement for 2018, indicating that the corporation incurred losses close to N1trillion. They were reduced in 2019 to N1.7billion.

The Group Managing Director (GMD), Mele Kyari, who came into office promising to open the books of the organization, has not failed in the publications of the NNPC Monthly Financial and Operations Report and had repeatedly promised profit declaration.

The NNPC losses were reduced from N803billion in 2018 to N1.7billion in 2019 and the eventual declaration of a net profit in 2020 for the first time in its 44-year history is a welcome development that the NNPC is set to be listed of the world’s highest income-grossing oil companies, both nationally-run and privately-owned.

Just like the Minister of Petroleum, President Muhammadu Buhari has reiterated, “This development is consistent with this administration’s commitment to ensuring prudent management of resources and maximization of value for the Nigerian people from their natural resources”.

Despite the Corporation’s bugged down by excessive political control, President Buhari has never interfered in the running of the corporation.

No wonder the Group Managing Director of the Nigerian National Petroleum Corporation, Mallam Mele Kyari singled out President Muhammadu Buhari for praise, claiming that he is the only president not to have interfered in the running of the corporation.

With the Nigerian National Petroleum Corporation in the process of being fully commercialized with the recent passage of the Petroleum Industry Act (PIA), the Corporation will surely make the subsequent list of the world’s highest income-grossing oil companies in the coming years.

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