A recent report by BudgIt, a research and business intelligence firm, has revealed that only two of the 11 subsidiaries of the Nigerian National Petroleum Corporation (NNPC), were actually profitable in the 2016 financial year, The Sun reports.
In a review of the NNPC 2016 Report, BudgIT, identified the NNPC Retail and the Nigerian Gas Company (NGC), as the only two subsidiaries that consistently made profits during the year. This was as it reported that the NNPC actually recorded a loss of about N197.49 billion in 2016, with the only profit of N274 million recorded in May. While the NNPC Retail recorded a net surplus of about N7.48 billion, the NGC earned about N39.03 billion.
The review rated the National Engineering Technical Company (NETCO), above average, with profits throughout the year, except January, March and April. Rated unremarkable were the upstream arm, the Nigerian Petroleum Development Company (NPDC), along with Integrated Data Services Limited (IDSL) and Pipelines and Products Marketing Company (PPMC), for “an inconsistent financial performance throughout the year.”
Those rated “very poor” included the Corporate headquarters (CHQs), the Corporate Strategic Unit (CSU) and three refineries in Port Harcourt, Kaduna and Warri, as they barely made any profit throughout the year under review. On remittances to the Federation Accounts Allocation Committee (FAAC), the report described its findings as showing a “damning difference”, with a total of $72.87 million transferred by the NNPC Group into the FAAC dollar account in 2016, against $607.82 million in 2015.