NNPC Loses N9.53 Billion as Revenue Plunges by 300 Percent

NNPC Reports N9.53 Billion Loss in Revenue in the Month of March

The Nigerian National Petroleum Corporation (NNPC) on Wednesday reported a N9.53 billion loss for the month of March as the drop in oil prices due to the global pandemic weighed revenue of the corporation.

According to findings, this is NNPC’s first operational loss since October 2018 when the corporation reported N12.66 billion in lost revenue.

A breakdown of monthly operational reports revealed that NNPC realised N2.06 billion and M12.13 billion in trading surpluses in November and December of 2018.

This momentum was carried over to 2019 as the company reported N15.04 billion, N16.72 billion, N11.72 billion, N5.6 billion, N6.33 billion and N3.92 billion surpluses for the months of January, February, March, April, May and June, respectively.

In July, August, September, October, November and December 2019, NNPC generated operational surpluses of N4.26 billion, N5.2 billion, N8.59 billion, N13.23 billion, N3.95 billion and N5.28 billion, respectively.

Similarly, the corporation posted N1.87 billion and N3.95 billion in the month of January and February 2020, respectively.

But at the peak of COVID-19 pandemic when global oil prices were hitting lower lowers before finally hitting an all-time low in April, the NNPC lost over 300 percent in revenue in March due to about 181 decline in the Nigerian Petroleum Development Company’s revenue.

Accordingly, the corporation recorded a 30.89 percent decline in sales to $256.19 million in the month.

This trend is expected to continue in April and May given the huge plunge in oil prices during the two months. April was the peak of the global pandemic when the US West Texas Intermediate crude oil was trading at a record low of -$37 per barrel while Brent crude oil, the benchmark for Nigeria’s oil, declined to $15 per barrel.

This decline, if persists, is expected to further weigh on government’s ability to fund the 2020 budget.