The Nigerian National Petroleum Company Limited (NNPCL) paid a total of N7.1 trillion as subsidy for premium motor spirit (PMS) in 2024, this sum represents a 47.9 percent increase from N4.8 trillion recorded in 2023.
This is despite the government’s announcement of subsidy removal in 2023.
The company explained that the amount, which it termed ‘energy security expense’ arises when there is differential between the exchange rate used to freeze the premium motor spirit ex-coastal price and the prevailing rate at the point of import settlement.
According to the report, government had instructed that NNPC Limited cannot sell its PMS above a certain regulated price. It added that the cost of petrol import is usually much higher that the regulated price.
Read also: NNPC posts ₦5.4trn record profit, as Ojulari sets $60bn energy investment plan
“In line with Section 64(M) of the Petroleum Industry Act (PIA) 2021, the cost incurred by NNPC Limited (Group) as the energy supplier of last resort for energy security reasons, and all associated cost shall be on the account of the federation.
“The government instructed that NNPC Limited cannot sell its premium motor spirit above a certain regulated price. However the cost of importing this PMS is usually much higher than this regulated price.”
BusinessDay’s analysis of the company’s 2024 annual financial report showed that it paid N1.03 trillion for gas flaring. The company also remitted N15.982 trillion to the Federal Government in taxes, royalties, and dividends for the fiscal year.
Bashir Ojulari, Group Chief Executive Officer of NNPCL, commenting on the report, described the remittance as an unprecedented contribution to national development. He explained that the company’s 2024 financials and accomplishments stand as a testament to its resilience, collaboration, and shared responsibility to both shareholders and the nation.
The company, in the year under review, posted a N5.4 trillion net income, with a N45.1 trillion total revenue. It’s earning per share in the period was N27.07.
According to the report, the company achieved 202.3 million barrels and 1.045 billion s.c.f in crude oil and gas production. It commissioned 12 refill stations for compressed natural gas.
Ojulari said, “In a year defined by dynamic shifts and global uncertainty, we stood firm in our commitment to excellence and resilience. We ensured uninterrupted supply reliability to the domestic market, adapting swiftly to evolving demand patterns and reaffirming our role as a dependable energy partner and a supplier of last resort to the nation.
“NNPC Ltd is at the forefront of Nigeria’s gas revolution. In 2024, we commissioned the AHL and ANOH gas processing plants and launched the ANOH-OB3 pipeline. We broke ground on five Mini-LNG plants in Ajaokuta, reinforcing our pledge to democratize energy access.
“Major infrastructure projects OB3 and AKK are at advance stage, while the African Atlantic Gas Pipeline (AAGP) has gained intergovernmental endorsement, positioning Nigeria as a continental energy hub.
“In power, we expanded installed capacity by 2.8%, and our LNG ambitions advanced with steady progress on NLNG Train 7. The Brass Fertilizer GSPA signing and renewed investor interest in Gas-Based Industries affirm Nigeria’s growing appeal as an energy investment destination.”
On the shipping side of business, the company generated N210 million in revenue from the commercialization of its Bill of Lading process, also newly established Vetting Desk vetted 278 vessels in the period.
