NNPC Is Now In Excess Of 4.4 Trillion Liabilities Over Assets – Report |The Source

By Uche Mbah

The Nigerian National Petroleum Corporation, as a group, is currently at a liability of N 4.4trillion over the assets of the oil firm in 2019. This is according to the just released audited financial statements of the firm. The oil firm’s liabilities as a corporation, however, exceeded its assets by N1.1tn.

NNPC has always been regarded as the cashcow of the country, and successive government has leveraged on the oil revenue as the main income source for the country.

In the report, the auditors expressed doubts that the NNPC will continue to exist, bearing in mind the level of liability of the firm. The reason for this they explained in the detailed report.

The auditors are PriceWaterhouseCoopers, SIAO Partners and Muhtari Dangana and Co, among others.

“We draw attention to note 42 of the consolidated and separate financial statements, which indicate that the group recorded a net loss of N1.8bn (corporation: net loss of N107.8bn) during the year ended 31, December 2019”, the auditors said.

“As at that date, the group’s current liabilities exceeded its current assets by N4.4tn (corporation: N1.1tn).”

Recent reports indicate that the Oil refinaries are in moribund situation, and that the cost of overhead far exceeded the production, which is nill.

Nigeria sells crude and imports finshed products, and critics are in agreement that there is at best lack of transparency in the running of the corporation.