NNPC incurred a loss of N20.2 billion in 2019 - Africa News
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NNPC incurred a loss of N20.2 billion in 2019

NNPC incurred a loss of N20.2 billion in 2019

The recently audited annual financial statement of the state-owned firm, NNPC, incurred a loss of N20.2 billion in 2019.
T were cut by 91.9 percent last year, and the group’s losses were reduced by 70.7 percent, more concern was needed to sustain the NNPC.
The consolidated statement for the year ended December 31, 2019 showed a comprehensive loss of over N16.3 billion by the corporation and N20.2 billion by the group.

These events or situations indicate that a material uncertainty exists that may become a significant concern over the ability of the group and corporation, and therefore may be unable to realize its assets and discharge its liabilities in the normal course of business Can, has been mentioned in the report.
The report mentions that the net loss of N1.8 billion by the group and N107.8 billion by the corporation, being more than N803.1billion and N254billion for the two entities respectively in 2018, being an improvement, the report It is said that the group’s current liabilities are still over N4.4 trillion, its current assets and the corporation’s N1.1 trillion.
In 2018, the corporation recorded a loss of over N203.2 billion, while the group made a loss of N68.95 billion.
However, the report states that recurring losses in previous years by NNPC have resulted in accumulated losses of N1.55 trillion and N474 billion as compared to N1.6 trillion (group) and N490.7 billion (corporation) respectively. The report warned that NNPC could be pushed into bankruptcy by unstable operating procedures.
In 2018, the group’s current liabilities stood at over N3.3 trillion and the corporation’s N968.7 billion, although in the directors’ opinion, the market value of NNPC’s assets was not less than the value stated in the financial statements.
The NNPC group consists of NNPC corporate headquarters and 21 strategic business units or subsidiaries, including National Petroleum Investment Management Services (NAPIMS), Nigerian Gas Company Limited, Nigerian Petroleum Development Company Limited, National Engineering and Technical Company Limited.
Others include Integrated Data Services Limited, Nigerian Pipeline & Storage Company Limited, Kaduna Refining & Petrochemical Company Limited, Port Harcourt Refining Company Limited, Warri Refining & Petrochemical Company Limited, Duke Oil Global Energy Investment, NNPC Limited, Hassan-Hydrocarbon Services. Nigeria) Limited and Petroleum Products Marketing Company.

method to prevent bankruptcy
To save NNPC from bankruptcy, the report noted that the current management, led by group management director, Mele Kyari, began several contemporary processes to help the corporation mobilize enough resources to ensure the corporation. Have done Continue to work in the future of the future.
As well as NNPC’s cost optimization and efficiency policy, there are indications that the federal government is committed to helping the corporation remain commercially viable by removing all cost drivers responsible for accumulated deficiencies over the years.
A source close to the NNPC said that some policies included the removal of fuel subsidies, which constituted a major drain on the corporation’s revenue, making it difficult to settle domestic crude oil obligations in the Federation account.
In addition, it was discovered that the price modulation mechanism was introduced in the Petroleum Product Pricing Regulatory Agency (PPPRA) fuel pricing system under the deregulation policy in the downstream sector of the petroleum industry to investigate a major cause of loss by NNPC. was.
Other policies by the government include reducing breakdown of petroleum product pipelines; Rapidly monitoring the passage and implementation of the Petroleum Industry Bill (PIB) and restructuring the petroleum industry


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