2020 NNPC Annual Performance Review

2020 NNPC Annual Performance Review

The 2020 Nigerian National Petroleum Corporation (NNPC) Annual Performance Review delves into the impact of the COVID-19 pandemic on NNPC’s operations & performance, along with the inflow of investment into the oil fields in
In June 2020, the Mele Kyari-led NNPC management, for the first time, blazed the trail by publishing the audited accounts of its subsidiaries and business divisions and launching the OpenData segment on its website as a measure to promote transparency in its financial operations. Likewise, in November 2019, NNPC committed
to becoming an EITI supporting company and a member of the EITI’s state-owned enterprise (SOE) transparency network.

However, NNPC is yet to comply with Section 7(5) of the NNPC Act that requires it to submit an annual budget of its projected expenditure and revenue to the National Council of Ministers (now Federal Executive Council, FEC) at least 3 months to the end of the financial year.

NNPC Group’s revenue in 2020 was N4.61 trillion, showing a 23.8% decrease from N6.05 trillion the group earned in 2019. The expenditure of all its subsidiaries stood at N4.52trillion. Total Crude oil production suffered an 11.61% decrease, from the 734.27m barrels produced in 2019 to the 649.00m barrels produced in 2020.

Pipeline breaks, a key cause of oil revenue leakage and production loss, had a 70.28% decline from 1,484 breakpoints in 2019 to 441 breakpoints in 2020. Likewise, a
corresponding 57.87% decline in NNPC’s spending on pipeline maintenance2 costs was recorded as it plummeted from N126.66bn in 2019 to N53.36bn in 2020. NNPC’s ailing refineries, led by KRPC, wiped out a total of N100.03bn from NNPC’s revenue in 2020 despite past announcements of investments in turnaround maintenance. Also, despite announcing a deal to boost PHRC’s performance through a colocation agreement with Maire Tecnimont SPA a few years ago, the Federal Executive Council (FEC) recently
approved another $1.5 billion for a rehabilitation exercise of the PHRC.

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