Monday, February 29, 2016 08:57 AM /FBNQuest Research
The NNPC, in its new spirit of accountability, has reported a group operating deficit of N267bn (US$1.36bn) for 2015, compared to the budget for the year of a surplus of N469bn. The corporation notes that the deficit is 61% attributable to claimable pipeline repairs (N104bn) and losses due to vandalism (N60bn).
On a divisional basis three units were responsible for the underperformance: the Nigerian Petroleum Development Company (surplus of N17bn vs budget of N452bn); the three refining companies (deficit of N82bn vs budgeted surplus of N30bn); and the Pipelines and Products Marketing Company (deficit of N62bn after subsidies vs surplus of N136bn).
Four units of the corporation managed an operating surplus in 2015, the largest contribution being N35bn from the Nigerian Gas Company.
The accounts highlight some expenditure restraint. The deficit for the year from central headquarters amounted to N182bn (vs a budget of N215bn).
The NNPC would become a clear beneficiary of naira devaluation once its (and private sector) refineries are together able to meet national demand.
These accounts cover performance at operating level, and so do not share below-the-line items. That said, the level of disclosure has been transformed under Emmanuel Kachikwu, the current group managing director appointed by President Muhammadu Buhari. We learn from this expanded, monthly publication that the annual report for 2015 will be available before the end of Q2.