NNPCL’s 2024 performance show ‘business finding its rhythm’ – Analyst

Victor Eromosele, Chairman of M.E Consulting Limited, has commended the Nigerian National Petroleum Company Limited (NNPCL) for its 2024 financial performance, stating that “the numbers shows a business finding its rhythm”.

The company, in its report posted a profit of N5.4 trillion and revenue of N45.1 trillion for the financial year. These for Eromosele signals stronger operational efficiency, deeper transparency, and steady progress toward full commercial competitiveness.

He said the underlying numbers tell a more meaningful story than the headline figures alone. He noted that currency volatility often complicates year-to-year analysis and opted to convert the topline numbers to dollars to achieve a clearer comparison.

“Before forming any judgment, I wanted to see the figures in a more stable currency. The Naira’s volatility distorts performance comparisons, so converting it to dollars provides a fairer lens both for internal review and for benchmarking against global peers.

“Based on the conversion, the company’s N45.1 trillion revenue translates to about 31.1 billion dollars, while its N5.4 trillion profit equates to roughly 3.7 billion dollars. While these figures remain smaller than the revenue scales of the largest international oil companies, efficiency, not size, is the real test of performance.

“When you want to know how well a company performs, you don’t stop at revenue. You look at margins, how much of each dollar of revenue is turned into profit,” he said.

He argued that with a profit margin of 11.8 percent, NNPCL outperformed some global peers, including Chevron at 9 percent and ENI at 6 percent. “If you judge purely by efficiency, not scale or market spread, NNPCL did better. From that perspective, its profit margins are actually superior,” he said.

Eromosele’s assessment extended beyond profitability. He pointed to a 56 percent growth in assets during the year, which he described as significant and intentional, especially as the company continues to adjust to its mandate under the Petroleum Industry Act.

He also highlighted the company’s improved Return on Capital Employed (ROCE), which rose from 23 percent in 2023 to 28 percent in 2024.

According to him, a 28 percent ROCE is impressive by any measure. He said it suggests discipline in capital deployment and strong value creation from existing assets.

“Numbers don’t have emotions. If you clean up the distortions and compare apples with apples, NNPCL’s 2024 numbers show a business finding its rhythm,” Eromosele said.

Read also: NNPC posts ₦5.4trn record profit, as Ojulari sets $60bn energy investment plan

He further explained that although the company still faces longstanding expectations around governance, transparency, and operational discipline, the 2024 report reflects an organization tightening its operations, expanding its asset base, and improving its profitability.

“It marks a visible step in NNPCL’s journey from a historically bureaucratic entity to a more competitive and commercially driven energy company.

“If 2023 was about transformation on paper, 2024 appears to be about execution,” Eromosele said. “And for perhaps the first time in its modern history, NNPCL is beginning to look and act like the global energy company it claims to be.”

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