Executive and non-executive directors at the Nigerian National Petroleum Company Limited received N2.59bn as fees and expenses in the 2023 financial year.
This figure indicates an increase of 214 per cent from N824m paid to the directors in 2022.
This new information was disclosed in the company’s latest financial statements for 2023.
Although the statement did not reveal the number of directors sitting on the board of the oil company, a statement by the presidency on November 27, 2023, revealed that nine people including the Chief Executive Officer currently sit on the board of the company.
NNPC is a major revenue-generating agency in Nigeria, operating as the national oil company in charge of the management, sales, etc, of the country’s crude oil and gas, among other key functions. It’s also a major source of forex.
Other administrative expenses showed that the group spent a total sum of N8.7bn on bank charges, N583.79bn on employees benefit expenses and N170.7bn on security expenses.
The report also stated that the NNPC spent a total sum of N45.88bn on safeguarding its pipeline and maintenance costs nationwide.
This cost was an increase of 64.47 per cent from N16.29bn while the insurance and security expenses on its assets also gulped N58.23bn.
The oil firm said, “Expenditure on major maintenance refits or repairs comprises the cost of replacement of assets or parts of assets, inspection costs and overhaul costs. Where an asset or part of an asset that was separately depreciated is replaced and future economic benefits associated with the item will probably flow to the Group, the expenditure is capitalised and the carrying amount of the replaced asset is unrecognised.
The costs of major turn-around of refineries and large petrochemical units are capitalized as incurred and depreciated over the time between two consecutive major turnarounds. Where part of the asset was not separately considered as a component, the replacement value is used to estimate the carrying amount of the replaced assets which is immediately written off. All other maintenance costs are expensed as incurred.”
Meanwhile, NNPC contributed N431.06bn of its accrued revenue to the federation account in the first seven months of 2024.
The amount distributed monthly is shared by the Federal Account Allocation Committee to the three tiers of government.
This was disclosed in a document analysing income remitted to the federation account by revenue-generating agencies between January and June 2024.
This analysis implemented by the Federation Account Department reveals the total inflows received monthly from sales of crude oil, makes necessary deductions, and the rest is shared with the three tiers of government.
