NIGERIA: NNPC records N287bn, first Profit After Tax in 44 years
By Eyo Nsima
The Group Managing Director, Nigerian National Petroleum Corporation, NNPC, Mele Kyari, Thursday, disclosed that the Corporation made N287 billion as its first Profit After Tax in 44 years.
Addressing journalists in Abuja as seen IN THIS VIDEO, he said: “This is a very proud moment for us, because to our shareholders. We’re no longer declaring losses. As a matter of fact, just like last year as we moved from a loss level of N803 billion in 2018, we reduce it to N1.7 billion in 2019, and in the 2020 fiscal year, we’re making a profit after tax of N287 billion. This is no doubt huge progress, but by no means is sufficient. This is the largest corporation in Africa.
“There are very drastic changes to the way we do our business. One is to cut costs, to be more efficient, and also to ensure that this company is transparent and accountable to Nigerian people, and therefore is a process that started in 2015.
“The first principle of course elimination is that, don’t buy what you don’t need. And we simply stopped buying what we don’t need. Also, particularly in fiscal 2020 whoever they engaged in all our contracts we insisted on cutting costs to at least 30 percent.
“This worked, and we’re able to pull down most of our procurement costs by 30 percent totally. We saw the opportunity to be much more efficient by automating our system and process, and processes that made us faster and also ultimately it reduced so much of logistic costs that ordinarily would have been additional costs on our business so why do you combine all these”.
The Minister of State Petroleum Resources, Timipre Sylva, who praised the NNPC board and management for the feat, added: “We are proud of everyone”.
