NNPC Retail recorded N395bn loss in 2024

The NNPC Retail Limited has declared a loss of N395.5 billion for the fiscal year 2024. 

The Nigerian National Petroleum Company (NNPC) Limited subsidiary recorded the loss in its “annual report, consolidated and separate financial statements for the year ended 31 December 2024”.

The document, seen by TheCable, showed that the loss of NNPC Retail was against a profit of N20.18 billion in 2023.

As at December 31, 2024, the financial statement showed that the company was in a net liability position of N278.8 billion — up from N79.51 billion in 2023.

NNPC Retail also recorded a net current liability position of N423.6 billion in contrast to net current assets of N29.62 billion in 2023.

The document also recorded the financial information of NNPC Retail and its subsidiaries (Apapa SPM Limited and NNPC Retail Limited Togo S.A) — together known as the “group”.

For the fiscal year 2024, the group reported a loss after tax of N391.1 billion as opposed to a profit after tax of N20.08 billion in 2023.

“As at 31 December 2024, the Group was in a net liability position of N269.7 billion (2023: net assets of N82.25 billion) and a net current liability position of N434.1 billion respectively (2023: net current assets of N28.96 billion),” the document reads.

DIRECTORS ATTRIBUTE LOSS TO NON-RECURRING TRANSACTIONS

The group’s directors, in a note in the financial statement, attributed the losses to non-recurring transactions.

“The loss recorded in the current year was largely driven by non-recurring transactions including an impairment of receivables amounting to N117 billion and an amount of N133.9 billion expensed in the current year, relating to reconciliation differences on intercompany ledger balances,” the note reads.

“These items are not expected to recur in future periods.”

The report noted that the group has historically maintained profitability, both under the defunct “NNPC Retail Limited” and the rebranded “NNPC Retail Limited” (formerly OVH Energy Marketing Limited).

The directors expect the group to return to profitability in the foreseeable future, supported by its established market share in the sourcing, distribution, retailing, and marketing of petroleum products in Nigeria.

“A significant portion of the Group’s current liabilities comprises balances with related parties, which constitute approximately 38 per cent of total current liabilities (N526.6 billion). Excluding these balances, the Group would be in a positive net current asset position,” they said.

“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.”

In 2022, NNPC announced its acquisition of OVH Energy, describing it as a strategic move to expand operations and attract investments into Nigeria’s downstream oil sector.

In August 2024, the national assembly also invited stakeholders to partake in a forensic investigation into the “irregularities” and alleged corruption” in the NNPC–OVH deal.

A year after, a federal capital territory (FCT) high court approved the hearing of a suit seeking to compel the refund of over N140 billion allegedly linked to the acquisition of OVH Energy, by NNPC.