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Nigerian refineries lost N377bn in 3yrs –NNPC

Oil and gas sector responsible for most non-performing loans in Nigeria- Report

The latest Monthly Financial and Operations Report of the Nigerian National Petroleum Corporation (NNPC) has revealed that Nigerian refineries lost the sum of N376.56 billion between them in the three year period to last November.

An operational loss of N132.50bn was posted by Nigeria’s four state-owned refineries in 2018, a nearly 40% increase over the N95.09 billion recorded the year before.

Escalating by 12.43% over the 2018 figure, the loss recorded in 2019 came to N148.97 billion, the NNPC document released on Sunday says.

Between December 2018 to November 2019, Kaduna refinery accounted for N58.97 billion loss, Kaduna N44.75 billion, and Warri N45.18 billion.

President Muhammadu Buhari had a grand ambition to overhaul the moribund plants in his first term with a minimum of 90% capacity utilisation in view.

Read also: FIRS records N282.10bn revenue target shortfall in Jan

Mr Buhari had an engagement with private sector financiers to technically support and bankroll the repair before talks fell through between both parties more than a year and a half after.

However, Mele Kyari, the corporation’s chief, plans to refurbish the moribund assets and end importation of fuel come 2023.

“We will deliver on the rehabilitation of the four refineries within the life of this administration and support the private sector to build refineries.

“We will support the Dangote refinery to come on stream on schedule. We will transform Nigeria into a net exporter of petroleum products by 2023,” Kyari said.

The firm teed off the first-phase renovation of the refinery in Port Harcourt, a project it said would be completed in six months.

While confirming last October the ongoing execution of rehabilitation works at the Port Harcourt refinery, Minister of State for Petroleum Resources, Timipre Sylva, assured that the Kaduna and Warri refineries would witness same in the first half of this year.

Ronald Adamolekun

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Ronald Adamolekun

Ronald Adamolekun is a creative writer with a mixed bag of experience in fields as diverse as data journalism, financial reporting and editing.

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