Business
NNPC Grows Profit To N674bn, Assets Hit N16.3trn
The Group Chief Executive
Officer, Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari, has announced that the NNPC as a corporation grew its profit after tax and assets from N287 billion and N15.86 trillion in 2020, to N674 billion and N16.3 trillion in 2021, respectively.
Kyari, who disclosed this at a press conference in Abuja, said the 2021 profit was contained in the Group Audited Financial Statement of the oil firm for the year ended December 31, 2021.
He also disclosed that all major trunk lines conveying crude oil to export terminals were currently shut down in order to avert further oil theft in the Niger Delta.
He, however, stated that efforts by the oil firm, security agencies and surveillance contractors were paying off, as about 400,000 barrels of crude would be added to the country’s output in the next few days.
The NNPC boss said, “In September 2021, Mr. President graciously approved the publication of the 2020 NNPC Group Audited Financial Statement, in which NNPC declared a profit after tax of N287bn for the first time in its 44 years.
“Despite our challenging operating environment, we strongly believe that NNPC has the potential to sustainably deliver better value to its esteemed shareholders.
“Today I am happy to announce that the Board of NNPC Limited has approved 2021 audited financial statements, and NNPC progressed to a new performance level, from N287 billion profit in 2020 to a N674 billion profit after tax in 2021, climbing higher by 134.8 per cent year-on-year profit growth.”
He continued ed, that “the group’s financial position recorded an increase in total assets from N15.86 trillion in 2020 to N16.27 million in 2021, while our total liabilities decreased by 8.3 per cent from N14.68 trillion in 2020 to N13.46 trillion in 2021.
“Our shareholders fund position grew to N2.81 trillion, representing 144 per cent year-on-year. The performance would have been greater if the operations in the year under review were free from incessant vandalism, crude oil and products’ theft among others.”
In the main drivers of the profit, Kyari said, “Our core business is upstream, gas and power. So the key drivers to this performance are coming from the upstream and the gas and power.”
Commenting on the amount of crude oil being lost to theft and why it had been difficult to contain oil theft, the NNPC helmsman stated that though oil production had slumped, not all reported volumes were stolen.
“Today, our production is around 1.2 million barrels per day. We have proven capacity and this was seen in 2020, where our production, without any intervention, peaked at 2.49 million barrels per day.
“That means we have capacity, without doing anything extra, to produce up to 2.49mbpd. But since COVID-19 abated and, of course, the issues around the acts of vandals returned, we saw this gradual decline in our production to the point of this 1.2mbpd production currently.
“That means that you can easily produce up to 2.49mbpd but you couldn’t do it because of the acts of vandals. Now, this doesn’t mean that the difference between 2.49mbpd and 1.2mbpd is stolen. No. It is far from this.
“As we speak now, all our major trunk lines are shut down. That means you are not flowing crude oil into these lines, but you could have done it and it doesn’t mean the product is stolen. When the lines are running, you can lose a substantial part of that volume.
“And we believe that when they are running, you can lose up to 200,000 barrels to theft. But in actual losses today, our budget level plan is to produce at 1.8mbpd. So, if you are doing 1.2mbpd, it technically means you are losing the difference between 1.2mbpd and 1.8mbpd.
“And this is around 600,000bpd as opportunity lost, not stolen. So, once you bring back the line and you are not able to secure it, you’ll still get some of the oil flowing into the terminals but you’ll lose some part of it”, he said.
Kyari insisted that the above scenario did not mean that 600,000bpd of oil was stolen, describing it as opportunity lost because of the shutdown of production facilities.
“But I’m happy to also say that the interventions that we have seen in terms of the security measures we have taken, in collaboration with the government security agencies, with the private surveillance and security contractors, and the investments that we have done, we believe that in the next couple of days we will be able to bring back the Trans Niger Pipeline,” he said.
###
MoniePoint Inc. a digital financial firm in Nigeria, has said it is empowering community pharmacists across the country with innovative payment solutions to improve access to drugs.
The financial firm said it had also provided loans for pharmacists under the aegis of the Association of Community Pharmacists of Nigeria (ACPN) to drive healthcare delivery in the country.
MoniePoint in a release titled, “Inside Nigeria’s community pharmacies: How Moniepoint drives healthcare access with payments and funding”, has reaffirmed its commitment to providing digital payment solutions to improve health outcomes in Nigeria.
The release examined how community pharmacies play a crucial role as vital access points for medical care in Nigeria, especially in areas with limited hospital or clinic access.
According to the release, the ACPN National Chairman, Ambrose Igwekwam, highlighted the critical role played by community pharmacies in Nigeria’s healthcare system over the years.
Igwekwam, however, expressed concerns over the challenges confronting the nation’s pharmaceutical industry which he said was hindering access to affordable medicines.
The pharmacist listed poor infrastructural systems, power, transportation, regulatory bottlenecks, importation dependency, and limited research opportunities as major challenges facing the pharmaceutical sector.
He also stressed the need for robust collaborative efforts with institutions like Moniepoint to strengthen the sector.
“As Nigeria continues to grow, improving local pharma manufacturing to meet the demands of this growth presents a key opportunity for us all.
“There is also the African Continental Free Trade Area Agreement, which is expected to boost our industry, especially when we start producing our drugs locally, which will provide the much needed foreign exchange from exports.
“We are also seeing advancements in digital health and technology which would hopefully deepen the practice of e-prescription in Nigeria”, the ACPN boss said.
Corlins Walter
In order to enhance customer service and streamline operations, the Chartered Insurance Institute of Nigeria (CIIN) has called on stakeholders in the insurance industry to embrace Artificial Intelligence (AI).
The President of the institute, Yetunde Ilori, made this call at the 2024 Office Representatives Committee (ORC) Workshop, organised by the institute, with the theme “AI and the Future of the Insurance Industry”, in Lagos.
Ilori at the event, emphasised the importance of AI adoption, noting that it was not a threat to jobs but rather a tool to improve efficiency across the insurance sector.
“It is not about AI taking over our jobs, but about us using AI to simplify processes and give maximum satisfaction to all the customers we serve whether as underwriters, brokers, loss adjusters, or in educating our members”, she said.
The workshop, which brought players in the insurance sector together, aimed to address how AI could be leveraged to transform business processes and improve customer interactions.
The Chairman of the ORC, Monica Nwachukwu, underscored the role of AI in modernising the industry, adding, “AI can automate customer and claims processes, allowing insurers to provide faster and more efficient services to their customers”.
She explained how AI could help extract data from legacy systems, enhancing decision-making processes.
“By integrating AI with APIs, insurers can feed valuable data into AI solutions to improve operations and customer service”, she added.
In his address, the Managing Partner of A4S and Training Heights, Orlando Odejide, stressed the need for companies to align their strategies with future technologies like AI, especially as they prepare for 2025.
“Any organisation that wants to grow into the future must have its strategic plan in place. If your strategy for 2025 is not ready, it should be done by October”, he advised.
He encouraged participants to think critically about how AI could be integrated into their business models to ensure they remain competitive.
“The idea is for you to use this workshop as a platform to think about your organization and how AI can help streamline your processes and improve growth”, Odejide noted.
In order to gain global respect and recognition, the National Space Research and Development Agency (NASRDA) has reaffirmed its determination to pursue its goal in ensuring that Nigeria’s space capabilities are recognised on the world stage.
The agency also reaffirmed its commitment to positioning Nigeria as a key player in the global space economy.
In a statement by the Director of Media and Corporate Communications, Dr. Felix Ale, NASRDA revealed that the Director-General of the agency, Matthew Adepoju, emphasised this during recent engagements at the 79th United Nations General Assembly and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and Global Alliance Business Association international conference in Michigan, United States.
The statement noted that Adepoju outlined a forward-thinking agenda, stressing the importance of Nigeria’s space programme as a leader in research, exploration, and technological innovation.
“Our goal is to ensure that Nigeria’s space capabilities are recognised on the world stage.
“We must foster collaborations with global space agencies to enhance our satellite capabilities and technological infrastructure”, he stated.
The NASRDA boss said the agency is focusing on enhancing satellite capabilities, expanding international collaborations, and leveraging space science for national development.
He said NASRDA will have no stone unturned in pursuit of excellence, ensuring the agency secures the necessary resources and recognition to propel it forward.
“The relationships we build today will pave the way for tomorrow’s advancements in space science.
“Innovation and progress thrive in an environment built on collaboration and inclusivity”, he stated.
He emphasised that with the support of the government, international partners, and a dedicated team, NASRDA is poised to make significant strides in the evolving global space landscape.
“We are on the brink of a new era for Nigeria’s space agency. Together, we will ensure our nation stands out in the global space economy”, he said.
Corlins Walter