NNPC Retail Limited, a subsidiary of the Nigerian National Petroleum Company (NNPC) Limited, reported a staggering loss of N395.5 billion for the fiscal year 2024, marking a dramatic turnaround from a N20.18 billion profit recorded in 2023.
The company disclosed the figures in its recently released “annual report, consolidated and separate financial statements for the year ended 31 December 2024,” a document reviewed by TheCable.
As of December 31, 2024, NNPC Retail found itself in a net liability position of N278.8 billion, a sharp increase from N79.51 billion in the previous year. The company’s net current liabilities ballooned to N423.6 billion, compared to net current assets of N29.62 billion recorded in 2023.
The financial report also covers NNPC Retail and its subsidiaries, Apapa SPM Limited and NNPC Retail Limited Togo S.A, collectively referred to as the “Group.” For 2024, the Group reported a loss after tax of N391.1 billion, reversing from 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, down from net assets of N82.25 billion the previous year, with net current liabilities reaching N434.1 billion,” the report stated.
Directors Cite Non-Recurring Transactions
The Group’s directors attributed the heavy losses primarily to non-recurring transactions. These included an impairment of receivables amounting to N117 billion and a further N133.9 billion expensed due to reconciliation discrepancies on intercompany ledger balances.
“These losses are linked to unusual transactions and are not expected to recur in future periods,” the directors assured.
They highlighted that historically, the Group has maintained profitability under both its former and current identities formerly OVH Energy Marketing Limited and now NNPC Retail Limited. The directors remain optimistic about returning to profitability, citing the Group’s established market presence in sourcing, distribution, retailing, and marketing petroleum products within Nigeria.
A significant portion of the Group’s current liabilities approximately 38%, or N526.6 billion are balances owed to related parties under common NNPC control. The Group noted that excluding these related-party balances, it would actually hold a positive net current asset position. NNPC has confirmed its ongoing financial backing of the Group for at least the coming year.
Background and Controversies
NNPC’s acquisition of OVH Energy in 2022 was presented as a strategic move to expand downstream operations and attract investment into Nigeria’s oil sector. However, the deal has faced scrutiny. In August 2024, Nigeria’s National Assembly called for a forensic probe into alleged irregularities and corruption tied to the transaction.
Further legal challenges followed in 2025 when a Federal Capital Territory high court authorized hearings on a suit seeking the recovery of over N140 billion, allegedly linked to the OVH Energy acquisition.
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