The just released Financial Statements of the Nigerian National Petroleum Corporation (NNPC) showed that the liabilities of the oil firm as a group exceeded the assets its assets by N4.4tn in 2019.
The statement also revealed that the oil firms liabilities as a corporation exceeded its assets by N1.1tn.
Considering the level of liability being shouldered by NNPC, the auditors which include PriceWaterhouseCoopers, SIAO Partners and Muhtari Dangana and Co. expressed significant doubt on the continued existence of oil firm as a going concern.
They said, “We draw attention to note 42 of the consolidated and separate financial statements, which indicate that the group recorded a net loss of N1.8bn (Corporation: net loss of N107.8bn) during the year ended 31, December 2019.
“As at that date, the group’s current liabilities exceeded its current assests by N4.4tn (corporation: N1.1tn.”
The report added that events or conditions along with other matters ‘indicate that a material uncertainty exists that may cast significant doubt on the group and corporations’s ability to continue as a going concern’.
While noting that their opinion was not modified, the auditors added that the events or conditions along with other matters ‘indicate that a material uncertainty exists that may cast significant doubt on the group and corporation’s ability to continue as a going concern’.
