The Nigerian National Petroleum Corporation (NNPC) has published its audited financial statements (AFS) for 2020, declaring N287 billion profit — even as liabilities exceeded assets by N4.6 trillion.
According to Investopedia, if a company’s liabilities exceed its assets, it is a sign of an asset deficiency – meaning that the company is headed for bankruptcy. The financial health of such companies is at risk.
Also in 2019, auditors raised concerns over material uncertainties in the book that cast considerable doubt on the ability of the group and corporation to continue to operate as a going concern
In its 44-year history, this is the third consecutive year that the NNPC is opening its financial books.
Garba Deen Muhammad, NNPC’s spokesperson, in a statement on Wednesday, said the release followed President Muhammadu Buhari’s directive for the corporation to meet its statutory requirements.
According to the statement, the group’s working capital in 2020 was N4.56 trillion, down from N4.44 trillion in 2019.
“In compliance with the President’s directive, the NNPC has fulfilled this very important statutory requirement by publishing its Audited Financial Statements today,” the statement reads.