NNPC Retail Limited has posted a staggering loss of ₦395.5 billion for 2024, a dramatic turnaround from the ₦20.18 billion profit it made the previous year.
The oil company subsidiary, which operates petrol stations across Nigeria, blamed the massive loss on unusual one-off transactions that it says will not happen again.
The figures come from NNPC Retail’s annual report, consolidated and separate financial statements for the year ended December 31, 2024.
The financial statements paint a grim picture of the company’s position. By the end of 2024, NNPC Retail was in debt to the tune of ₦278.8 billion, compared to ₦79.51 billion the year before. The company also reported short-term debts of ₦423.6 billion, a stark contrast to the ₦29.62 billion in net current assets it held in 2023.
When including NNPC Retail’s subsidiaries – Apapa SPM Limited and NNPC Retail Limited Togo S.A – the total loss after tax reached ₦391.1 billion in 2024. This compares to a group profit of ₦20.08 billion in 2023. The wider group’s debts also ballooned to ₦269.7 billion, whilst it had net assets worth ₦82.25 billion the previous year.
The company blames one-off transactions
NNPC Retail’s board of directors insisted the enormous losses were caused by unusual transactions that would not be repeated.
“The loss recorded in the current year was largely driven by non-recurring transactions including an impairment of receivables amounting to ₦117 billion and an amount of ₦133.9 billion expensed in the current year, relating to reconciliation differences on intercompany ledger balances. These items are not expected to recur in future periods,” the directors said.
The board emphasised that both the old company and the rebranded NNPC Retail had historically been profitable. They expressed confidence that the company would return to making money, pointing to its strong position in selling and distributing petroleum products across Nigeria.
Company bosses also revealed that a large chunk of the debts – about 38 per cent of the ₦526.6 billion in short-term liabilities – was money owed to other companies within the NNPC group.
“A significant portion of the Group’s current liabilities comprises balances with related parties, which constitute approximately 38 per cent of total current liabilities (₦526.6 billion). Excluding these balances, the Group would be in a positive net current asset position. The related parties are under common control of NNPC Limited, which has provided confirmation of its continuing financial support to the Group and the Company for at least the next 12 months,” the directors explained.
Fallout from OVH Energy deal
The poor financial results come as NNPC faces increasing questions about its 2022 purchase of OVH Energy, which was later renamed NNPC Retail.
When NNPC bought OVH Energy, the state oil company said it was a smart business move that would help it expand its retail operations and attract more investment to the downstream oil sector.
However, the deal has attracted controversy. In August 2024, Nigeria’s National Assembly launched a detailed investigation into alleged problems with the acquisition. More recently, a high court in the Federal Capital Territory agreed to hear a legal case demanding the return of over ₦140 billion allegedly connected to the purchase.
