NNPC’s crude oil revenue hits 12.02 trillion in 2023
Omeiza Bilal
Revenue from crude oil sales in Nigeria increased significantly from N545 billion in 2022 to N12.02 trillion in 2023, representing a growth of about 2100 per cent.
In contrast, revenue from Panama declined from N2.9 trillion in 2022 to N2.04 trillion during the period, reflecting a decrease of approximately 29.66 per cent.
Additionally, while the company earned N19 million from crude oil sales in the United Kingdom in 2022, no revenue was reported from that country in 2023. Consequently, NNPC’s total revenue from crude oil sales for the year amounted to N14.07 trillion.
A review of the report highlights additional revenue sources for NNPC in 2023. These include revenues from the sale of petroleum products and natural gas.
Furthermore, NNPC earned revenue from various services, further contributing to its financial performance for the year.
The company reported revenues of N7.1 trillion from petroleum product sales, a significant increase from N4.5 trillion the previous year.
Petroleum product sales encompass fuel, kerosene, diesel, naphtha, and other related products.
Nairametric said Nigeria also remained the leading market in this area, generating N6.9 trillion compared to N4.3 trillion the previous year, accounting for approximately 97 per cent of total petroleum product sales. Sales to the Bahamas totalled N151.7 billion, up from N129.5 billion the year before.
This category, which includes the invoice value of natural gas sold to third parties, generated approximately N2.3 trillion for the year under review, a significant increase from N683 billion reported the previous year.
Nigeria once again was the primary revenue source, contributing N1.9 trillion, up from N638.7 billion in 2022. This accounted for 82.6 per cent of total gas revenues.
Interestingly, the Cayman Islands contributed N402.7 billion to the gas revenue, a notable increase from the previous year’s contributions of N3.9 billion from the UK, N24 billion from Panama, and N16.3 billion from the Cayman Islands.
The company reported a substantial increase in revenue from services, totalling N464 billion for the year, a significant rise from N100.5 billion in the previous year.
Nigeria was a major contributor, generating N379.2 billion, a notable increase from zero in 2022.
Cyprus also played a significant role, contributing N80.49 billion.
In contrast, the Cayman Islands, which had been the sole source of the N100.5 billion revenue in 2022, contributed nothing to the revenue in 2023.
The national oil company, NNPC, continues to be a major source of revenue and foreign exchange for the Nigerian government.
