Directors collect N2.59 billion in fees, expenses as NNPC declares over N3trn profit

1 month ago 85

The executive and non-executive directors of the Nigerian National Petroleum Company Limited received N2.59 billion in 2023
The amount covering fees and expenses represents a 214% increase over the N824 million paid to the directors in 2022
The business paid N8.7 billion for bank fees and N583.79 billion for staff benefits, according to additional administrative charges

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

The Nigerian National Petroleum Company Limited's executive and non-executive directors were paid N2.59 billion in fees and expenses for the 2023 fiscal year.

The amount shown here is a 214% increase over the N824 million paid to the directors in 2022.

The most recent financial statements for 2023 released by the corporation included this additional information.

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!

Legit.ng earlier reported that the NNPCL has announced a net profit of N3.29 trillion for 2023. The new figure is the highest ever since 1977 and a 28% or N700 billion increase from the N2.54 trillion profit declared for 2022.

NNPC is a significant source of income

A statement released by the presidency on November 27, 2023, disclosed that nine individuals, including the Chief Executive Officer, presently hold board positions in the oil firm, despite the announcement not disclosing the number of directors.

Serving as the nation's oil business and in charge of managing the nation's gas and crude oil production, among other crucial duties, NNPC is a significant source of income for Nigeria. It is also a significant forex source.

Additional administrative costs revealed that the group paid N8.7 billion for bank fees, N583.79 billion for employee benefits, and N170.7 billion for security costs.

According to the report, the NNPC invested a total of N45.88 billion in pipeline protection and maintenance expenses across the country.

This cost increased by 64.47% from N16.29 billion, and N58.23 billion was spent on security and insurance for company assets.

The oil firm said,

“Expenditure on major maintenance refits or repairs comprises the cost of replacement of assets or parts of assets, inspection costs and overhaul costs. "Where an asset or part of an asset that was separately depreciated is replaced, and future economic benefits associated with the item will probably flow to the Group, the expenditure is capitalised, and the carrying amount of the replaced asset is unrecognised.“The costs of major turn-around of refineries and large petrochemical units are capitalised as incurred and depreciated over the time between two consecutive major turnarounds.

In the first seven months of 2024, NNPC gave N431.06 billion of its total revenue to the federation account.

The Federal Account Allocation Committee divides the monthly allotment among the three branches of government.

This was revealed in a document that examined the revenue that revenue-generating organisations sent to the federation account between January and June of 2024.

The Federation Account Department's analysis shows the total monthly revenues from crude oil sales, deducts the appropriate amount, and distributes the remaining funds to the three levels of government.