Home Business NNPC Lost Over N20bn in 2019, Says  Audit Report

NNPC Lost Over N20bn in 2019, Says  Audit Report

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The Nigerian National Petroleum Corporation (NNPC) recorded a loss of N20.2 billion in 2019, according to the state-owned firm’s latest audited annual financial statement.

Details of the consolidated statement of account for the year ended December 31, 2019 showed a comprehensive loss of over N16.3 billion by the corporation and N20.2 billion by the group.

In 2018, the corporation recorded over N203.2 billion in losses while the group lost about N68.95 billion.

However, the report said recurring losses by the NNPC over the years have culminated in an accumulated loss of about N1.55 trillion and N474 billion respectively, compared to N1.6trillion (group) and N490.7billion (corporation) in 2018.

The report warned that the NNPC may be pushed into bankruptcy by its unsustainable operational processes.

The audit report released Thursday said although the corporation’s losses were cut last year by over 91.9 per cent, and the Group’s losses by over 70.7 per cent, more needs to be done to sustain the NNPC as a going concern.

“These events or conditions indicate that a material uncertainty exists that may cast significant doubt on the Group and Corporation’s ability to continue as a going concern, and therefore may be unable to realise its assets and discharge its liabilities in the normal course of business,” the report noted.

Despite the net loss of about N1.8 billion by the Group and N107.8 billion by the Corporation, compared to N803.1billion and over N254billion for the two entities respectively in 2018, being an improvement, the report said the Group’s current liabilities still exceed its current asset by over N4.4 trillion, and the Corporation’s by N1.1 trillion.

In 2018, Group’s current liabilities was over N3.3 trillion and the Corporation’s N968.7billion, although in the opinion of the Directors, the market value of NNPC’s asset was not less than the carrying value reported in the financial statement.

 

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