NNPC Limited, formerly a loss-making government-controlled entity, has undergone a significant transformation in the past three years. In 2018, it incurred losses of N807 billion, followed by N1.7 billion in 2019.

However, the company rebounded and recorded its first profit in 44 years, with N287 billion in 2020. This remarkable turnaround continued, leading to a staggering 183% growth in profit ratio from 2018 to 2021, even amidst a drastic drop in international crude oil prices.

To further enhance its financial performance, NNPC Limited recently made a noteworthy contribution to the Federation Account revenue, remitting N123 billion in June 2023. This payment included N81 billion as a monthly interim dividend and N42 billion from 40 PSC profit oil, alongside adherence to royalty and tax payments.

The deregulation of the downstream sector, following President Bola Tinubu's decision to end petrol subsidies, provided the company with increased cash flows for trading activities.

In line with its commitment to operational efficiency, NNPC Limited took steps to reduce operational costs and boost profit margins. It streamlined its Strategic Business Units (SBUs), shutting down unviable ones and retaining 21 subsidiaries. Notably, its oil field services, Integrated Data Services Limited (IDSL), and Frontier Exploration merged to form NNPC Services Limited, EnSERV, focusing on exploration, seismic data management, and general oilfield services.

A source familiar with NNPC and its operations told the newsmen that the company has also brought the ongoing rehabilitation of its three refineries located in Port Harcourt, Warri and Kaduna under a single supervision.

According to the source, who didn’t want to be named, “in a bid to optimise and reduce overhead costs, a couple of companies were merged and others were optimized for better operability and profitability.

He said the three refineries located in Port Harcourt, Warri, and Kaduna, have been placed under unified supervision to enhance efficiency and minimize overhead costs.

The source, who preferred to remain anonymous, highlighted that NNPC pursued consolidation and optimization to achieve better operability and profitability. As part of this approach, several companies were merged, and others were optimized to create an improved, cost-effective structure.