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NNPC achieved 287BN profit after 44 years

Nigerian National Petroleum Corporation is the Nigerian government oil company ©CC BY-SA 4.0
President Muhammadu Buhari had announced The GMD further said that the board of directors
On August 26, 2021 a profit after tax of N287 bil- would decide on payment of dividends or to pass
lion by the Nigerian National Petroleum Corpo- the profit to capitalization of the company,
ration (NNPC) in 2020, It was the first time the noting that Petroleum Industry Act (PIA) made
corporation will announce profit in its 44 years clear how the NNPC would be go-ing forward. The
of existence, Kyari emphasized that the feat was Group Managing Director of the Nigerian
achieved with the support of the President. “This National Petroleum Corporation (NNPC) Malam
progress wouldn’t have been possible if we didn’t Mele Kyari has explained how the corpo-ration
have the support of the president who steers the achieved N287 billion profit after tax made in
affairs as the State Nigerian Minister of Petro- 2020. Kyari who spoke to journalists in Abuja
leum Resources Resources. His consistent review noted that though the profit was huge, it was not
of what we do both at the Board and manage- sufficient for the nation.
ment to ensure that the company will do well and Commenting on how the corporation was able to
must be accountable to Nigeria people brought make profit, he said that the process started in
about this milestone. 2015 with the President Muhammadu Buhari’s
In the fiscal year 2020, we engaged all our cont- administration, with the decision to cut costs, be
ractors and insisted on cutting costs at least 30 more efficient and ensure transparency and ac-
percent. This worked and they happened to pull countability. He said that the piloting of the Pre-
down most of our procurement by 30 percent. sident gave the corporation the opportunity to do
We saw the opportunity to be more efficient by things differently, adding that continuation of the
automating our system and processes that made ideas of the past NNPC GMD and new concept
it work faster and ultimately reduced logistic cost helped to achieve huge results. “For the NNPC
that added additional cost to our business, borro- Family, this is a very proud moment for us and
wing at lower rate in 2020 also helped us to redu- for our shareholders because we no longer de-
ce cost of production.” clare losses.

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