The Nigerian National Petroleum Company (NNPC) today released its financial reports as at 31st March 2020. The report was disclosed on the website of the corporation
The Report indicates a trading deficit of ₦9.53Billion compared to the ₦3.95Billion surplus posted in February 2020. The decline of over 300% in the month is due primarily to the huge decrease of 181% in NPDC’s performance which was caused by present decline in crude oil prices due to Coronavirus-related impact of reduced exports and dawdling world oil consumption; combined with deficits posted by the refineries and the CHQ.
The report also showed that the combined value of output by the three refineries (at Import Parity Price) for the month of March 2020 amounted to approximately ₦0.57billion. No associated crude plus freight cost for the three refineries since there was no production but operational expenses amounted to ₦10.88billion. This resulted to an operating deficit of ₦10.30billion.
In March 2020, NNPC remitted the sum of ₦147.15 Billion to the Federation Account Allocation Committee (FAAC). From March 2019 to March 2020, total NNPC remittances to FAAC amounted to ₦1,679.67 Billion.
The report also revealed that in March 2020, the Group operating revenue as compared to February 2020, decreased by 3.5% or N14.56Billion to stand at ₦402.99Billion. Similarly, expenditure for the month decreased but slightly by 0.3% or ₦1.08Billion, at ₦412.51Billion. Expenditure as a proportion of revenue in the current month is above par; different from the trend in the last three consecutive months which were almost at par. Apparently, this reveals an unhealthy financial situation.
The report also showed that NNPC paid a total of ₦37.66 billion as subsidy in March 2020 which amounts to about ₦17 billion increase in under-recovery when compared to the ₦20.67 billion paid in February 2020. The combined subsidy for the first 3 months of the year amounted to ₦101.64 billion.
1kobo.com had reported early that the federal government has stopped the payment of subsidy following the adverse implications the current economic stress is having on the nation. The results from the quarterly report does not only reiterate the need for an improved management in the NNPC it is also an evidence for why Nigeria needs to diversify her economy.
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