Four months after declaring N287bn profit, Nigerians still await NNPC audit report

*Doubts, anxiety persist as Corporation keeps mum

*Come clean, publish details of all dividends received, stakeholders urge organisation

Doosuur Iwambe, Abuja

About four months after the Nigerian National Petroleum Corporation (NNPC) announced that the corporation recorded N287 billion profit in 2020, Nigerians are still awaiting details of the audited report.

This is just as key stakeholders in the oil sector as well as other Nigerians have expressed doubt over the authenticity of the report, saying there was no way the NNPC, with the way it is presently run, can make profit.

The Daily Times recalls that the NNPC had on August 27, 2021 declared a N287 billion profit after tax (PAT).

Announcing the record profit, the first in 44 years of the Corporation’s existence, President Muhammadu Buhari said the feat became possible through prudent management of resources and the need to maximise value for the Nigerian people from its natural resources.

“I am pleased to announce the declaration of profit after tax of N287 billion in 2020 by the Nigerian National Petroleum Corporation. This is sequel to the completion of the statutory annual audit exercise for year 2020.

“The NNPC losses were reduced from N803 billion in 2018 to N1.7 billion in 2019 and the eventual declaration of net profit in 2020 for the first time in its 44-year history.

“I have further directed the Nigerian National Petroleum Corporation to timely publish the audited financial statements in line with the requirements of the law and as a follow-up to our commitment to ensuring transparency and accountability by public institutions,” he said.

Meanwhile, key stakeholders in the oil sector have challenged the corporation to publish details of all dividends received by it to the public.

According to them, there was no way the NNPC, with the way it is presently run, can make profit.

Speaking during a telephone interview with this reporter, Engr. Chidi Efobi, a Nigerian oil expert based in Saudi Arabia, said the corporation might have dipped its fingers into the federation account to announce the N287 billion profits.

He said: “There is an allegation that NNPC dipped their fingers in the Federation Cookie Jar in order to announce bumper 2020 profits; they should come clean and publish details of all dividends received by them and tell us which ones they recently diverted from the federation to themselves.”

Also, an investment expert, Engr. Rowland Aleojo challenged the Corporation to publish details of all dividends received by it and tell Nigerians which ones it recently “diverted from the federation.”

On his part, Dr. Osayamen Olaye, a petroleum sector expert, queried how the Corporation will suddenly move from a loss position of N.7 billion in 2019 to a record profit of N287 billion in 2020.

For Olaye, it was all about manipulative balance sheet engineering through consolidation of the corporate actions of independent entities set up by acts of parliament for the benefit of the federation saying it was a ‘tad too deceitful.’

According to the petroleum expert, the dividends of the NLNG; The West African Gas Pipeline Company (Operated by Chevron); The Nigeria Gas Company (NGC); Duke Oil; NPDC; Bonny Transport Company, and Wheel Insurance were put together and declared as profit by the NNPC.

“When you add up all of the dividends for the year ended 2019, which was declared, paid and transferred to the NNPC accounts in 2020 on behalf of the federation, you will get in excess of over $2.5bn/N1 trillion (using the CBN official rate),” he said.

Industry experts have queried how the Corporation was able to re-value its N713 billion initially assumed to be doubtful receivables from the federation account. They are of the belief that “it’s just a one off thing that won’t happen every year.”

There is also a widespread belief that the Corporation manicured its books to arrive at the profit.

Meanwhile, some experts have commended the Corporation for the courage to make its financial statement public.

According to them, the move is a positive development for the extractive industry.

An energy law expert, Damilola, Olawuyi (SAN), explained that international law emphasises the need for openness and transparency across all aspects of regulatory enforcement and supervision.

NEITI has been particularly active in raising awareness of the need for proactive information disclosure as a tool for enhancing public confidence and eradicating corruption.

“The publication of audited financial statements by the NNPC shows that such efforts are paying off and will significantly boost investors’ confidence in the on-going efforts by the federal government to sanitise the extractive industry.

In the meanwhile, the NNPC was yet to react to the issue on Sunday even after attempts through calls and text messages.