Thread by @StearsBusiness

Two.

That’s the number of times Nigeria’s cash cow, @NNPCgroup, has publicly released its financial statements in its entire history.

1/13

It released the 2018 accounts in June and 2019 accounts last month. Twice in 5 months. What a time to be alive.

In this thread we highlight the major profit and loss centres at NNPC and talk about salaries, which attracted some attention last week.

2/13

. @NNPCgroup made a loss of ₦1.7 billion in 2019 despite earning revenues of over ₦4.6 trillion. Of the group’s 21 Strategic Business Units (SBUs), the refineries were the major loss drivers.

3/13

The refineries continue to spend billions on employee welfare, consultancy fees, office expenses despite not being operational. The worst culprit is the Kaduna Refinery which made a loss of ₦65 billion in 2019.

4/13

Combined, these inoperative refineries made losses of over ₦160 billion - more than the annual budget of states like Abia, Anambra, Borno, Enugu, Ekiti, Plateau, Gombe and Kaduna.

5/13

Time for the good news. The major profit driver was @napimsnnpc – the arm of NNPC that recognizes revenue from selling crude oil and natural gas to domestic and foreign customers. NAPIMS made a profit after tax of ₦2.8 trillion in 2019.

6/13

. @NPDC_NG, which is the arm of NNPC that operates some crude oil fields in Nigeria made ₦478 billion in profit last year. It was the second most profitable SBU.

7/13

There’s been some buzz on Twitter about the hefty salaries paid by @NNPCgroup. In 2019, NNPC Group paid ₦139 billion as salaries and allowances to employees. This excludes NNPC’s contribution to pensions and other staff welfare expenses

8/13

NNPC has 6,621 employees so this amounted to an average take-home of ₦21 million per employee. Again, the largest salary spenders are the inoperative refineries which gulped ₦51.6 billion on 1,450 employees in 2019.

9/13

This means the average refinery employee took home ₦35.6 million last year–70% higher than the average NNPC employee.

10/13

However, the SBU that had the highest average salary was the @ngcnnpcgroup – the arm of NNPC that delivers natural gas to power plants and other customers. NGC employees took home an average of ₦55 million, the highest of any SBU

11/13

Another thing that many people do not know is that NNPC owns subsidiaries in some non-oil and gas companies. Among its most profitable arms are its HMO company - @NnpcHmo and its captive insurance company, The Wheel Insurance, in the Channel Islands.

12/13

Register today to understand the issues behind the headlines with @StearsBusiness
👉🏽 stearsng.com/accounts/signu…

13/13

Note: Although @napimsnnpc is a strategic business unit of
@NNPCgroup, it is owned by the Federal and State Governments of Nigeria, and it’s financials are reported separately from @NNPCgroup