Lagos — The Nigerian National Petroleum Corporation Limited (NNPCL) spent N13.817 trillion on petroleum products imports and sales, gas sales, royalties and direct costs in 2023, accounting for 81.5 per cent of its total costs in the year, according to its recently released financial statement.
Specifically, the NNPCL said it spent N10.315 trillion to acquire and supply petroleum products across the country in 2023, accounting for 60.85 per cent of its total sales cost of N16.951 trillion.
The cost incurred in the acquisition and supply of petroleum products by the NNPCL in 2023, according to its Audited Financial Statement for the 2023 fiscal year, was 116.8 per cent higher than the N4.757 trillion recorded from the same activities in 2022.
However, in comparison, the NNPCL’s cost of selling petroleum products in 2022 accounted for 70.95 per cent of its total cost of sales of N6.706 trillion.
NNPCL also paid a total of N1.889 trillion as royalties to the Federal Government, while it suffered a loss of N1.246 trillion through the depreciation and depletion of its oil and gas assets.
Other heavy cost items in the NNPCL’s finances in 2023 included ‘other direct cost’ N939.884 billion, compared with N266.306 billion for the same item in 2022; while it said it spent N672.797 billion on the purchase of gas in the year under review, as against zero in 2022.
The corporation further reported direct well expenses of N541.119 billion, an increase of 586.85 per cent compared with N78.783 billion expenses incurred on the same item in 2022; crude handling and port charges rose by 113.25 per cent to N537.321 billion, from N251.972 billion recorded in 2023; while freight, insurance and other charges grew by 123.5 per cent to N139.651 billion, compared with N62.485 billion recorded in 2022.
Others include: Niger Delta Development Commission (NDDC) levy N137.063 billion; allocated technical and production costs N134.325 billion; gas flaring penalties N75.762 billion; insurance and security expenses N58.226 billion; labour costs N54.394 billion; variation in crude stock N52.596 billion; flow stations expenses N46.726 billion and pipeline maintenance costs N45.876 billion.
Furthermore, the national oil firm’s general and administrative expenses grew by 75.5 per cent to N2.991 trillion in 2023, from N1.704 trillion recorded in 2022.
Its general and administrative expenses in 2023 were largely driven by exchange loss of N899.399 billion, as against zero in 2022; employee benefit expenses of N583.797 billion in 2023, compared with N266.933 in 2022; ‘other expenses’ of N402.358 billion, as against N644.584 billion; and legal and professional fees of N182.754 billion, as against N44.409 billion in 2022.
In general, the NNPCL reported revenue of N23.99 trillion in the 2023 fiscal year, rising by 172.11 per cent compared with N8.816 trillion recorded in 2022; cost of sales of N16.951 trillion, as against N6.706 trillion in 2022; gross profit of N7.039 trillion, an increase of 233.5 per cent compared with N2.11 trillion recorded in 2022; and profit after tax of N3.297 trillion, rising by 30.67 per cent compared with after-tax profit of N2.524 trillion recorded in 2022.
