PicNews
NNPC Retail Limited, a subsidiary of the Nigerian National Petroleum Company, has reported a staggering loss of N395.5 billion for the 2024 fiscal year, a dramatic turnaround from the N20.18 billion profit it made in 2023. The loss was largely driven by non-recurring transactions, including impairment of receivables amounting to N117 billion and reconciliation differences on intercompany ledger balances of N133.9 billion. These transactions are not expected to recur in future periods, according to the company’s directors.
The financial statement shows that the group, which includes NNPC Retail’s subsidiaries Apapa SPM Limited and NNPC Retail Limited Togo S.A, reported a loss after tax of N391.1 billion in 2024, compared to a profit after tax of N20.08 billion in 2023. The company’s directors attributed the losses to one-off transactions and expressed confidence that NNPC Retail will return to profitability, supported by its established market share in the sourcing, distribution, retailing, and marketing of petroleum products in Nigeria.
The loss has sparked controversy, particularly surrounding NNPC’s acquisition of OVH Energy, which was later renamed NNPC Retail. The deal has attracted scrutiny, with allegations of irregularities and corruption. In August 2024, Nigeria’s National Assembly launched a detailed investigation into alleged problems with the acquisition. A high court in the Federal Capital Territory also agreed to hear a legal case demanding the return of over N140 billion allegedly connected to the purchase.
NNPC Limited has committed to providing continued financial support to stabilize NNPC Retail. The company’s directors expect a return to profitability, citing its historical performance and market dominance. Despite the challenges, NNPC Retail remains a significant player in the Nigerian petroleum industry, with a strong presence in the sourcing, distribution, retailing, and marketing of petroleum products.
