NNPCL paid N749.7bn as staff benefits, N271.3bn for security in 2024

The Nigerian National Petroleum Company Limited (NNPCL) said its staff got N749.7bn as benefits in 2024, analysis of its 2024 financial report has shown. A breakdown showed the company paid N275.7bn as salaries and wages, N378.1bn for allowances and N48.4bn for welfare expenses. A total of N43.9bn was paid for post-employment benefits and N3.3bn as […]

The Nigerian National Petroleum Company Limited (NNPCL) said its staff got N749.7bn as benefits in 2024, analysis of its 2024 financial report has shown.

A breakdown showed the company paid N275.7bn as salaries and wages, N378.1bn for allowances and N48.4bn for welfare expenses.

A total of N43.9bn was paid for post-employment benefits and N3.3bn as ‘Other long-term employee benefits.’

This is just as the company said it incurred N271.3bn Security expenses.

It also said it paid N118.3bn as penalties for fines and penalties are interests on late payment of royalty to NUPRC and taxes to FIRS.

The company went further to show that N29.2tr of its revenue is made from crude oil sales, more than double the N14trn in 2023.

While N9.6 trillion was from petroleum products as against N7.1trn in 2023, N1trn was made from Natural gas and N9.4bn from power sales.

 

 

 

It noted that “petroleum products revenue includes the sale of Premium Motor Spirit (PMS), Dual Purpose Kerosene (DPK), Automotive Gasoline Oil (AGO), Naphtha, Lubricants and other related products.

 

 

 

The Company’s Petroleum products relate to EGTL products under the joint venture between Chevron Nigeria Limited and NNPC Limited.”

 

 

 

While natural gas revenue represents the invoice value (transaction price) of natural gas.

 

 

 

“Power revenue represents the sale of power to NBET (Nigeria Bulk Electricity Trading). Services revenue consists of revenue from seismic contracts, time based contracts, gas transmission tariffs, shipping, marine and engineering activities.”

 

 

 

It added that 202.3 million barrels of crude oil were produced while 1,045.6 billion s.c.f. natural gas produced.

 

 

 

It added that the bulk of its revenue was from Nigeria worth N19.5tr. This is followed by Switzerland with N2.1trn and Spain with N1.9trn.

 

 

 

Meanwhile the company’s Financial Controller, Tajudeen Kareem said the report indicated that its return on equity improved year on year to about 14 percent.

 

Speaking on its X Space the company organised, Kareem said the story is about stable earnings and cash flow and also talked about creating shareholders value and returns.

 

 

 

“So we see that we have improved on where we were last year and we would like to unpack some of the factors that drove that movement. One key one was the story of the naira and 2023, if you all recall, the floating of the naira made the exchange rate to move up. In addition, we also noticed that average production went down by about three per cent, which also kind of reduced our earnings,” he said.