NIPCO PLC achieves 69% turnover increase in 2023 despite product, FX challenges

… gears up for a promising 2024, focuses on strategic investments, expansion of gas infrastructure

Oredola Adeola

NIPCO PLC, one of Nigeria’s leading downstream oil and gas companies, has recorded a 69 percent increase in turnover for the fiscal year 2023 compared to the previous year despite facing product and foreign exchange challenges

Speaking through Aminu Abdulkadir, Group Executive Director (GED) Corporate Services, NIPCO Plc, Chief (Dr.) Bestman Anekwe, Board Chairman, made this known at the company’s 20th Annual General Meeting (AGM) held at Abuja Continental Hotel, FCT Abuja.

According to him, NIPCO is committed to the Presidential Compressed Natural Gas (PCNG) Initiative aimed at improving access to gas as auto fuel across the country.That initiative, according to him, is aimed to establish 35 state-of-the-art CNG stations nationwide and provide over 11,500 new CNG-powered vehicles by 2027.

“This initiative, despite requiring significant capital investment, is expected to play a crucial role in Nigeria’s energy transition,” Dr. Anekwe stated.

He further expressed optimism about NIPCO’s future, noting a remarkable 69% increase in turnover for 2023.

“Our strategic investments are poised to create new pathways for long-term growth,” he said, emphasizing the potential of the oil and gas sector to drive economic progress amid the country’s ongoing efforts to curb pipeline vandalism and oil theft.

“The anticipation surrounding the removal of the petrol subsidy and other critical developments, such as the start of operations at the Dangote oil refinery, marks a pivotal moment for the industry,” he remarked.

“NIPCO’s collaboration with NNPC Limited aims to establish 35 CNG stations across Nigeria, catering to over 200,000 vehicles daily.

“Strategic partnerships like this align with the broader goals of the PCNG Initiative, setting a course for Nigeria’s sustainable energy future,” Dr. Anekwe noted.

However, he acknowledged the initiative’s challenges, including significant capital investment and existing infrastructure deficits.

He said, “The outlook for 2024 is mixed, with expectations of increased drilling, local petroleum product refining, gas commercialization, and the completion of the Ajaokuta-Kaduna-Kano Gas Pipeline project.

“These developments are poised to jump-start Nigeria’s economic engine,” Dr. Anekwe emphasized, while also highlighting the ongoing security challenges facing the oil and gas industry.

“Our good balance sheet, exemplary service delivery, and dedicated workforce position us for continued success,” Dr. Anekwe affirmed.

He further acknowledged the crucial challenges of product availability and foreign exchange but expressed confidence in the company’s ability to navigate these obstacles.

The Board Chairman of NIPCO PLC, therefore commended the management team of NIPCO for their resilience and innovation, adding that “NIPCO Group is in good hands,”

“Together, we will chart a course for resounding growth and success in 2024,” Dr. Anekwe encouraged the staff and management team.Mr. Suresh Kumar, Managing Director/CEO, NIPCO Plc, also in his remark said the completion of phase one of the Port Harcourt refinery and the inauguration of the Dangote Refinery Petrochemical Limited in 2023 were significant milestones.

However, refining activities have yet to commence fully.

“We expect the Dangote Refinery, with its 650,000 barrels capacity, to be a game changer in the downstream sector by the first half of 2024,” Kumar stated.