Nigerian National Petroleum Company Limited (NNPCL) is facing financial sustainability challenges with debts reaching N22 trillion, exacerbated by unviable subsidiaries. The company revealed a profit of N3.2 trillion in 2023 but will spend N466.7 billion on decommissioning burdens. Stakeholders are concerned about rising intercompany debts and liquidity issues within NNPC’s subsidiaries.
NNPC has strategic investments in refining, gas infrastructure, and trading, but profitability remains questionable. Mounting debts reflect the company’s struggles to effectively manage oil and gas resources. Amidst financial strains, NNPC has taken loans for oil exploration projects, further increasing its debt burden.
Calls for shutting down unprofitable ventures have emerged as NNPC plans to go public. The need for a comprehensive audit and decisive leadership changes has been emphasized. Prof. Damilola Olawuyi highlights the slow pace of NNPC’s transformation initiatives. Core investors are urged to take over non-performing entities to revive the sector.