The Nigerian National Petroleum Company Limited is facing growing financial pressure as debts owed by its subsidiaries and related entities surged to ₦30.30 trillion as of the end of 2024.
Figures from NNPC’s audited 2024 financial statements show that inter-company receivables jumped by 70.4 per cent, or ₦12.52 trillion, from ₦17.78 trillion in 2023 to ₦30.30 trillion as of December 31, 2024. The rise reflects mounting obligations across refineries, trading units and gas infrastructure companies within the group.
An analysis of the accounts shows that NNPC operates 32 subsidiaries, but only eight were not indebted to the parent company during the period. Most units recorded rising balances, underscoring persistent financial weaknesses despite reforms aimed at repositioning the national oil company as a profit-driven enterprise.
The development comes as NNPC continues to manage controversy over the write-off of large debts owed to the Federation Account and pushes ahead with plans to divest non-core assets. Last week, President Bola Tinubu approved the cancellation of a substantial portion of NNPC’s obligations to the Federation, amounting to about $1.42 billion and ₦5.57 trillion, following a reconciliation exercise.
Announcing the 2024 results, Group Chief Executive Officer Bashir Bayo Ojulari said the company posted a profit after tax of ₦5.4 trillion on revenue of ₦45.1 trillion, representing year-on-year increases of 64 per cent and 88 per cent, respectively. Analysts, however, say the sharp rise in inter-company debts highlights structural weaknesses behind the headline figures.
The biggest debtors include NNPC’s refining subsidiaries. Port Harcourt Refining Company Limited owed ₦4.22 trillion as of 2024, up from ₦2.00 trillion the previous year. Kaduna Refining and Petrochemical Company Limited recorded ₦2.39 trillion, while Warri Refining and Petrochemical Company Limited owed ₦2.06 trillion. The refineries have undergone repeated rehabilitation programmes but continue to operate below commercially viable levels.
NNPC’s trading arm also accounted for a significant share of the exposure. NNPC Trading SA owed ₦19.15 trillion in 2024, more than double the ₦8.57 trillion recorded in the previous year.
Other subsidiaries with notable obligations include NNPC Gas Infrastructure Company Limited, Nigerian Pipelines and Storage Company Limited, Petroleum Products Marketing Company Limited and several power and logistics units, according to the audited accounts.
At the same time, NNPC’s own payables to subsidiaries and related parties rose to ₦20.51 trillion in 2024 from ₦14.17 trillion a year earlier. The largest portion related to NNPC Trading Limited, which was owed ₦16.36 trillion by the parent company.
Borrowings also increased sharply. NNPC’s loans more than doubled to ₦122.8 billion in 2024 from ₦55.7 billion in 2023, driven largely by funding for projects such as the Gwagwalada Independent Power Project. The company said the loans remain at the company level and do not reflect group-wide debt.
The swelling inter-company balances come as NNPC accelerates plans to sell stakes in refineries, pipelines and other assets to improve liquidity and attract external investment. While the company has signalled confidence in its commercial transformation, the latest figures highlight the scale of financial restructuring still required within the group.