By G9ija

The annual expenditure of the Nigerian National Petroleum Company Limited rose to N788.7 billion in 2021 from the N648.6 billion the previous year due to increase in salary, entertainment and other costs.

According to the 2021 financial audit of the NNPCL, the highest chunk of N388.4 billion went for staff salaries.

That was a slight decrease from the N397 billion it spent in 2020.

Analysis of just the salary spent shows that N236 billion was spent last year higher than the N212 billion NNPC spent in 2020.

Pension took another N150 billion, a decrease from the N182 billion spent the previous year.

The huge emolument cost came at a time when the company has been commercialised with experts expecting a downsize in staff.

Another N81 billion was spent on exchange loss, the cost of converting its oil earnings to local currency which rose by 100 per cent from the N42 billion spent in 2020.

NNPC also wrote off N71 billion for asset depreciation, a figure considered to be worrisome as it rose from N18 billion in 2020.

The company also spent N11 billion on entertainment in 2021, a sharp rise from the N1.8 billion spent in 2020; NNPC blew N46 billion on legal and professional fees which doubled from N24 billion in 2020.

It also tripled postage and telephone expenses from N5 billion in 2020 to N15 billion last year just as NNPC spent N390 million on its Directors, far above the N214 million it spent in 2020.

Despite issues of liquidity, the firm’s officials spent N10 billion on travels, but that was N4 billion less than what it spent in 2020, the COVID-19 year.

Another disturbing expense is the N20 billion it spent on fines and penalty, rising from just N2 billion the previous year.

Overall, the company said it recorded over N6.4 trillion income, which was higher than the N3.7 trillion it made earlier.

While it spent N5.3 trillion in 2021 as cost of sale of petroleum products, NNPCL spent N3.6 trillion in 2020.

For the 2021 fiscal year, it made a net profit of N674 billion, far above the N287 billion it made in 2020.