A Review of the Nigerian Energy Industry

NNPC grows revenue by 25%, records N14bn deficit

*NNPC Towers

Ike Amos

06 June 2017, Sweetcrude, Abuja — Despite growing its revenue by 24.61 percent, the Nigerian National Petroleum Corporation, NNPC, posted a trading deficit of N14.12 billion in the month of February 2017.

The NNPC, in its February 2017 Monthly Financial and Operations Report, posted group operating revenue of N318.29 billion in February, up from N255.43 billion recorded in the previous month.

The NNPC explained that the January and February revenue figures represented 107.53 per cent and 134.21 per cent respectively of its monthly budget.

The NNPC’s operating expenditure for February stood at N332.41 billion, appreciating by
23.26 per cent from N269.68 billion in January, which also represents 128.61 per cent and 158.52 per cent of the budget for January and February respectively.

As a result, the NNPC recorded trading deficit of N14.12 billion in the month under review, representing a slight improvement from the N14.26 billion deficit recorded in January 2017.
The NNPC said the marginal decrease in the deficit is largely attributed to the improvement in upstream performance with the Nigerian Petroleum Development Company, NPDC, taking much of the credit.

Other factors, according to the report that affected the overall NNPC’s performance include production shutdown of Qua Iboe, Trans Niger Pipeline, TNP, and Nembe Creek Trunk Line, NCTL, as well as the existing Force Majeure declared by Shell Petroleum Development Company, SPDC, as a result of the vandalized 48- inch Forcados export line after the restoration on 17th October 2016 amongst others.

The report said, “NNPC has been operating in a challenging environment which limits its aspiration to profitability. However, this February 2017 financials is structured to reflect the Corporation’s ongoing restructuring exercise for the implementation of Autonomous Business Unit and the new refineries business model.”

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