NNPC's record profit forgets a tiny detail

Nigeria's NNPC faces scrutiny for failing to remit $8.8 million, despite announcing record profits and ambitious investment targets for the future.

Nigeria’s state oil company, NNPC Ltd., is under renewed scrutiny after the Auditor-General reported that it failed to remit ₦12.72 billion — 20 percent of its 2020 operating surplus — to the government’s reserve fund as required by the Fiscal Responsibility Act. The audit, submitted to the National Assembly, said there was “no evidence” of the transfer and warned that the lapse exposes public finances to diversion risks. NNPC argued that the Act no longer applies to it after its transition to a limited liability company, but the Auditor-General rejected the claim, noting the audit covers the pre-PIA period. Lawmakers have been urged to compel repayment and sanction those responsible. The controversy emerged just as NNPC announced a record ₦5.4 trillion profit for 2024 — a 64 percent jump from the previous year. Group Chief Executive Bashir Bayo Ojulari said the performance reflects the company’s transformation as it pursues $60 billion in energy investments and targets higher crude output, from 1.5 million barrels per day in 2024 to 3 million bpd by 2030. Analysts say success will depend on tackling theft, vandalism and attracting foreign capital, even as the firm prepares for a potential public listing.