The audited financial statement (AFS) was for the 12-month
period ending December 2024.

According to the details of the report, the NNPC group’s PAT
rose by 64 percent year-on-year from the N3.3 trillion recorded in 2023.

Also, the oil firm recorded a N45.1 trillion revenue —
representing an 88 percent year-on-year growth — from N23.99 trillion in 2024.

Here are highlights from the report.

ENERGY SECURITY EXPENSES/UNDER RECOVERY

According to NNPC, energy security expenses, also known as
petrol subsidy, gulped N7.1 trillion in 2024 — up from N4.8 trillion in 2023.

The oil firm said the “energy security expense” arises when
there is a difference between the exchange rate (the modulation factor) used to
set the petrol ex-coastal price and the actual exchange rate at the time the
import payment is settled.

NNPC explained that the amount is owed to the NNPC group
(comprising subsidiary firms), as it is recovered and deducted from the monthly
remittances due to the federation, in line with section 64(m) of the Petroleum
Industry Act (PIA) 2021.

Also, the report noted that the cost incurred by “NNPC
Limited (Group) as the energy supplier of last resort for energy security
reasons, and all associated costs shall be on the account of the Federation”.

“The government instructed that NNPC Limited cannot sell its
Premium Motor Spirit (PMS) above a certain regulated price,” the report reads.

“However, the cost of importing this PMS is usually much
higher than this regulated price. The under recovery is essentially the
difference between the actual landing cost of the product and the regulated
price. This balance is used to reduce the cost of sales of the Group.

“The corresponding entry is either used to reduce the
liability due to the federation or used as a receivable from the federation.”

NNPC said “under recovery” is recognised where there is
reasonable assurance that it will be received and all attached conditions have
been complied with.

“When it relates to an expense item, they are deducted in
reporting the related expense in cost of sales” the oil firm added.

NNPC EARNS N45TRN FROM CRUDE OIL, GAS SALES

According to the report, the NNPC generated N45.1 trillion
in revenue from “contracts with customers,” spanning crude oil, petroleum
products, natural gas, power, and services.

NNPC reported earning N29.2 trillion from crude oil sales in
2024 — more than double the N14.07 trillion from the same revenue stream in
2023.

The oil firm also earned N9.68 trillion from petroleum
product sales in 2024, up from N7.14 trillion in 2023.

NNPC said its petroleum product revenue was generated from
sale of petrol, dual-purpose kerosene (DPK), automotive gasoline oil (AGO),
naphtha, lubricants, as well as other related products.

Natural gas earnings rose to N5.19 trillion in 2024, as
against N2.3 trillion in the preceding year.

Revenue from services — which includes seismic and
time-based contracts, marine operations, engineering services, and gas
transmission tariffs — also increased to N980.45 billion during the period
under review, from N464.94 billion the previous year.

Power revenue, from the sale of electricity to Nigeria Bulk
Electricity Trading (NBET), rose to N9.41 billion, up from N94 million during
the same period.

NNPC’S REVENUE SOURCES

According to the report, the group generates revenue from
the transfer of commodities and the provision of services, either at a specific
point in time or over a period.

NNPC said the revenue, totalling N45.1 trillion, was
generated across 16 countries.

The countries are Nigeria, the United Kingdom, Switzerland,
France, Italy, the Netherlands, Germany, Spain, Singapore, the British Virgin
Islands, Vietnam, Cyprus, the United Arab Emirates (UAE), Ghana, Benin, and
Togo.

Nigeria remained NNPC’s largest market, contributing N34.41
trillion to its total revenue in 2024 — nearly twice the N18.29 trillion
recorded in 2023.

The Nigerian market contributed N19.59 trillion in crude
sale, N9.68 trillion in petroleum products, N4.16 trillion in natural gas,
N973.45 billion in services, and N9.42 billion in power sale.

Switzerland was the next biggest contributor, with crude oil
sale adding N2.11 trillion while natural gas sale added N25.53 billion.

Spain followed with N1.39 trillion from crude exports, and
the UAE added N1.26 trillion from crude oil and natural gas.

France contributed N1.19 trillion — buying crude oil — to
the group’s earnings, and Singapore added N979.9 billion, with British Virgin
Islands contributing N972.61 billion — through the purchase of natural gas and
services.

Germany also purchased crude oil worth N942.94 billion from
the oil firm.

The United Kingdom delivered N743.90 billion in 2024, and
the Netherlands contributed N504.59 billion.

SUBSIDIARIES, JV PARTNERS OWE NNPC N30.29 TRILLION

The report showed that a total of 22 subsidiaries and one
joint venture (JV), classified as “related parties,” owed the NNPC N30.29
trillion combined in financial transactions in 2024.

Port Harcourt Refining Company Limited (PHRC) closed the
year with an outstanding balance of N4.22 trillion owed to NNPC.

Kaduna Refining and Petrochemical Company (KRPC) also posted
a significant balance, owing N2.39 trillion, while Nigeria Gas Infrastructure
Company (NGIC) Limited owed N847.9 billion.

NNPC Energy Services (Enserv) Limited is expected to pay
N264.7 billion to its parent company, Warri Refining & Petrochemical
Company (WRPC) owes N2.05 trillion, and NNPC Shipping & Logistics owes
N99.9 billion.

Additionally, Nidas Shipping will pay N1.2 billion to the
national oil, NNPC Engineering and Technical Company Limited owes N50.85
billion, while NNPC Gas Marketing Company Limited (NGML) has a N54.7 billion
debt.

According to the report, N468.7 billion is owed to the
national firm by Nigerian Pipelines and Storage Company (NPSC), N19.14 trillion
by NNPC Trading SA, N1.97 billion by NNPC Trading Services (UK) Limited, and
N18.93 billion by NNPC Properties Limited.

Also, NNPC LNG Limited, NNPC Medical Services Limited
(NSML), and the National Petroleum Telecommunication (NAPET) owed N28.22
billion, N106.75 billion, and N26.36 billion, respectively.

NNPC New Energy Limited held an outstanding balance of N5.11
billion, NNPC Eighteen Operating Limited is obligated to pay N681 million,
while Kaduna and Kano IPPs owed N1.8 billion and N1.4 billion, respectively.

Gwagwalada Power Limited also held N326.5 billion in
outstanding balances, and Maiduguri Emergency Power Plant owed N179.3 billion.

The report recorded Hyson Nigeria Limited, which owed N102
million to NNPC, as the sole JV debtor.

On the other hand, NNPC owed six subsidiaries N20.51
trillion as of December 31, 2024.

The subsidiaries are NNPC E&P Limited (N4.02 trillion),
NGIC (N106.97 billion), NNPC Retail Limited (N10.95 billion), NNPC HMO (N3.4
billion), NNPC Trading Limited (N16.36 trillion), and Antan Producing Limited
(N7.2 billion).

LOAN TRANSACTIONS

According to the financial statement, NNPC disbursed N185.54
billion in loans to its “related parties”

and borrowed N152.75 billion in the fiscal year 2024.

“As at December 2024, the outstanding intercompany loan
balance and other receivables between NNPC Limited and NIDAS Shipping Services
Limited stood at N9.8bn and N1.8bn respectively,” the report reads.

“On January 28 2021, the Top Management Committee (TMC)
recommended the conversion of the loan and other receivable to investment and
capital contribution in both entities.

“Pending the legal formalities, the interest on the loans
has been suspended and the balance reported inline with the applicable IFRC
standards.

“As at the year end, NNPC said the total loan due from
Enserv “amount to N174 billion for the purpose of Keana drilling campaign, Chad
Basin re-entry as well as other 3D seismic acquisition projects.”

The oil firm said the transactions with related parties are
made on terms equivalent to those used in arm’s length transactions.

NNPC added that outstanding balances at the year-end are
unsecured and interest-free.

An arm-length transaction refers to a business deal in which
the involved parties act voluntarily and independently of one another.