The Nigerian National Petroleum Company Limited (NNPCL) paid a total of ₦7.1 trillion as subsidy for premium motor spirit (PMS) in 2024, this sum represents a 47.9% increase from ₦4.8 trillion recorded in 2023.
This is despite the government’s announcement of subsidy removal in 2023.
The company explained that the amount, which it termed ‘energy security expense’ arises when there is differential between the exchange rate used to freeze the premium motor spirit ex-coastal price and the prevailing rate at the point of import settlement.
According to the report, government had instructed that NNPC Limited cannot sell its PMS above a certain regulated price. It added that the cost of petrol import is usually much higher that the regulated price.
“In line with Section 64(M) of the Petroleum Industry Act (PIA) 2021, the cost incurred by NNPC Limited (Group) as the energy supplier of last resort for energy security reasons, and all associated cost shall be on the account of the federation.
“The Government instructed that NNPC Limited cannot sell its premium motor spirit above a certain regulated price. However the cost of importing this PMS is usually much higher than this regulated price.”
An analysis of the company’s 2024 annual financial report showed that it paid ₦1.03 trillion for gas flaring. The company also remitted ₦15.982 trillion to the Federal Government in taxes, royalties, and dividends for the fiscal year.
Group Chief Executive Officer of NNPCL, Bayo Ojulari, commenting on the report, described the remittance as an unprecedented contribution to national development. He explained that the company’s 2024 financials and accomplishments stand as a testament to its resilience, collaboration, and shared responsibility to both shareholders and the nation.
The company, in the year under review, posted a ₦5.4 trillion net income, with a ₦45.1 trillion total revenue. It’s earning per share in the period was ₦27.07.
According to the report, the company achieved 202.3 million barrels and 1.045 billion standard cubic feet (scf) in crude oil and gas production. It commissioned 12 refill stations for compressed natural gas.
Analysts call for a forensic audit, citing leakages, low production, and opaque security spending, urging transparency and oversight to prevent misuse.
