Business
NNPC Records Remarkable 2024 Performance, Analyst Says Company Is “Flying Higher”
Nigeria’s national oil company, NNPC, is showing strong financial and operational progress, according to Victor Eromosele, Chairman and CEO of M.E Consulting Ltd.
Speaking in an interview with ARISE NEWS on Tuesday, Eromosele highlighted that the company’s 2024 Profit at a Tax results reflect healthy asset growth, robust margins, and an ability to meet financial obligations—signaling an upward trajectory for the oil giant.
Eromosele, a former CFO, said he converted NNPC’s figures to U.S. dollars to account for fluctuations in the naira and provide meaningful comparisons with international energy companies.
SEE MORE: NNPC Ltd Declares ₦5.4 Trillion PAT
“The first thing I did in terms of analysis was actually trying to convert these numbers to dollars. The reason why I’m converting these numbers to dollars is the very fact that we all know what has happened to Naira in the periods we’re looking at.
“And if you look at it in dollars, you’ll find that the top line, instead of that $45 trillion, is actually $31.1 billion. The bottom line, instead of $5.4 trillion, is actually $3.7 billion,” he explained.
Comparing NNPC to global peers such as Chevron and Italy’s E&I, Eromosele pointed out the company’s operational efficiency despite its smaller scale.
“Clearly, you’ll see that NNPC did better. So, from that perspective of efficiency, financial efficiency, we will say that NNPC has superior profit margins,” he said, citing an 11.8% margin for NNPC compared to 6% for E&I and 9% for Chevron.
Other financial indicators, including asset growth and return on capital employed, also show significant improvement.
“Everybody said, ‘oh, sweat the assets. How have they grown?’ 56% growth in total assets. What about the other thing, investors? What was the return on capital employed? And the number is 28%. And that is quite healthy, from 23% the previous year. So, we can clearly say, looking at the superficial parameters, NNPC actually did well,” Eromosele noted.
While some credit the gains to foreign exchange movements and subsidy removals, Eromosele argued that the company’s operational momentum is real.
Quoting NNPC Group CEO Bibi Ojolari, he said: “One thing we can say is that the plane is no longer on the runway. The plane has taken off. If you listen to Bibi Ojolari, the group CEO, I quote him, it talks about positive momentum. You think about planes, you think about speed, and then you think about altitude, and then vision, make sure you land at the right airport. So, one thing we can say is that NNPC, when it was a corporation, it was on the runway. Now, definitely, it’s no longer on the runway, it’s in the air flying.”
On NNPC’s capacity to meet its payables, Eromosele emphasized that the company is well-positioned.
“From what I can see, they have a capacity to meet its payables. The first thing you look at is to say, hey, between your current asset and your current liability, which is more? In the case of NNPC, the current assets by far exceed.
“Actually, I compared that to 2023. In 2023, they were nearly at par. In 2024, the assets have actually grown higher, which means that it’s actually in a very good position to meet all its debt obligations based on the audited financials.”
He, however, pointed out a lingering challenge in reporting timelines.
“The only problem I have personally is that financials, world-class financials, should be published before the half-year, in other words, between March and June.
“Here we are in what month? December, almost November. So clearly, but I find out, hey, what happened? Okay, there was a change in systems, they were installing new accounting systems and so on. But the fact that it’s published at all in the same year, it’s an improvement. What I can say, it is not yet uhuru.”
Eromosele concluded by underlining NNPC’s progress relative to global standards: “We want to celebrate. But if I understood that, you say, oh, you came 10th. I say, no, somebody came first. You can see that relative to internationals, that is where the benchmark is.
“We’ve been able to discount out the forex, and that’s why we’re looking at dollars. If you did a little comparison, you actually see that even in dollar terms, there actually was a drop in 2024, in 2023, but it was not peculiar to NNPC.”
He added, “NNPC is flying higher than ever before, demonstrating efficiency, financial discipline, and operational momentum.”
Business
Adoption of AI Feature as NIPetGE Pays Courtesy Call at NNPC Ltd
Enhanced adoption of artificial intelligence and other digital technologies to improve operations in Nigeria’s oil and gas industry is taking the centre stage in relevant circles.
The issue came up strongly when the President-elect of the Nigerian Institute of Petroleum and Gas Engineers NIPetGE, Prisca Kanebi, paid a courtesy call at the Nigerian National Petroleum Company Limited (NNPC Ltd), Abuja.
Biztellers reports that the Kanebi led delegation was received by the Group Chief Executive Officer of the NNPC Ltd, Bayo Ojulari, represented by the Executive Vice President, Gas, Power and New Energy, Olalekan Ogunleye.
According to a statement made available on Sunday, discussions at the meeting focused on the future of Nigeria’s hydrocarbon industry amid global energy transition concerns, technological changes and sustainability targets.
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The statement indicated that the NNPC Ltd acknowledged the role of NIPetGE in policy advocacy, technical development and innovation within the sector.
Speaking during the meeting, Kanebi highlighted recommendations from the institute’s recent conference, including the proposed establishment of a national centre for intelligent energy systems to support the deployment of artificial intelligence, the Internet of Things and robotics across the petroleum value chain.
She also commended the Federal Government’s decarbonisation efforts and reiterated the institute’s support for policies aimed at improving sustainability in the industry.
The institute also recommended the creation of a hydrocarbon-linked emissions trading system to allow Nigeria to take part in global carbon markets.
The institute also proposed fiscal incentives to support local manufacturing and service delivery in the oil and gas sector, as well as the expansion of the Energy Transition Plan to include measurable upstream decarbonisation targets backed by tax credits.
Other proposals included increased public-private partnerships in emission control infrastructure, carbon capture projects and hybrid renewable energy initiatives.
Both organisations also stressed the need for stronger collaboration between industry and academic institutions to improve professional capacity and align petroleum engineering practice in Nigeria with international standards.
The institute further disclosed that its bill seeking chartered status had passed second reading and was progressing towards a third hearing at the National Assembly.
It added that NNPC Ltd pledged support for future collaborations with the institute on initiatives aimed at improving efficiency and innovation in the energy sector.
Business
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Business
Local Firms Lead Revival of Idle Oil Wells – SPE
Nigeria’s indigenous oil and gas companies are reopening dormant wells and ramping up production from assets acquired from international oil companies (IOCs) to boost crude oil output.
The Society of Petroleum Engineers (SPE), Nigeria Council, made the assertion through its Chairman, Francis Nwaochie, on the sideline of the Offshore Technology Conference (OTC) which ended at the weekend in Houston, Texas.
Nwaochie said indigenous operators were already taking advantage of opportunities created by disruptions in the global energy market to increase production from existing assets.
According to him, local firms that recently acquired onshore and shallow water assets from IOCs were aggressively reviving inactive wells and maximizing available infrastructure to raise output levels.
“What we are seeing now is that indigenous companies are reopening wells from the assets they acquired from the IOCs. Some of them have almost doubled production from those existing assets,”.
He explained that the renewed focus on dormant wells and existing facilities had become critical at a time the global oil market was facing supply shortages triggered by geopolitical tensions in the Middle East.
The SPE Nigeria Council Chairman noted that Africa, particularly Nigeria, was well positioned to benefit from the supply gap because of the continent’s relative stability compared to some other oil-producing regions.
“There is a huge opportunity for Africa right now. The focus is gradually shifting to Africa because of the volatile environment in many other producing regions.”
He stated that indigenous operators were leveraging digital technologies, financing opportunities and local expertise to improve production efficiency and optimise existing fields.
He added that stronger implementation of local content policies was also helping to create a more stable operating environment for oil and gas investments.
“Local content is very critical. Once communities and local companies clearly understand their roles and benefits, then you create peace across the industry. Business only thrives in peaceful environments.”
ALSO READ: Nigerian Navy Recovers Large Cache of Illegal Refined Petroleum Products
Nwaochie also stressed the need for Nigeria to move beyond crude oil production and begin developing indigenous technologies for the energy industry.
According to him, SPE Nigeria Council was actively supporting innovation and technology development among young Nigerian engineers and researchers.
He disclosed that the association was engaging the National Universities Commission(NUC) on reforms to engineering curricula in universities to better prepare graduates for the future of the energy industry.
“One of our major focuses in SPE is technology development. We should not only import machines and equipment, we must begin to develop our own technologies locally.”
Nwaochie revealed that SPE was already supporting local innovators working on technologies such as remotely operated underwater vehicles (ROVs), noting that indigenous technology development will strengthen Nigeria’s economy and deepen local participation in the oil and gas sector.
“We may not get everything right immediately but we must start somewhere. That is how countries that dominate the global energy industry built their capacities.”






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