NNPC Retail Limited has announced a staggering loss of N395.5 billion for the fiscal year 2024, as detailed in its “annual report, consolidated and separate financial statements for the year ended 31 December 2024.” This financial setback starkly contrasts with the previous year’s profit of N20.18 billion in 2023.
As of December 31, 2024, the company’s financial statements reveal a significant net liability position of N278.8 billion, a steep increase from N79.51 billion in 2023. The report further indicates a net current liability position of N423.6 billion, a sharp decline from net current assets of N29.62 billion recorded in the prior year.
The annual report encompasses the financial information of NNPC Retail and its subsidiaries, including Apapa SPM Limited and NNPC Retail Limited Togo S.A., collectively referred to as the “group.” For the fiscal year 2024, the group reported a loss after tax of N391.1 billion, compared to a profit after tax of N20.08 billion in 2023.
The directors’ note in the financial statement attributes this year’s losses to non-recurring transactions, highlighting an impairment of receivables worth N117 billion and an expense of N133.9 billion related to reconciliation discrepancies on intercompany ledger balances. The directors assured that these issues are not expected to recur in the future.
Historically, the group has maintained profitability under both the former and rebranded identities. The directors anticipate a return to profitability in the near future, bolstered by the company’s established market position in sourcing, distributing, retailing, and marketing petroleum products in Nigeria.
Notably, around 38 percent of the group’s total current liabilities, amounting to approximately N526.6 billion, consist of balances with related parties. Excluding these, the group would show a positive net current asset position. NNPC Limited, which has assured ongoing financial support to the group for at least the next 12 months, controls these related parties.
The company’s acquisition of OVH Energy in 2022 was intended to expand operations and attract investments in Nigeria’s downstream oil sector. However, the national assembly has since invited stakeholders to participate in a forensic investigation into alleged irregularities related to the NNPC-OVH deal. A federal capital territory high court has also approved a hearing on a suit aimed at compelling the refund of over N140 billion allegedly associated with this acquisition.