The Nigerian National Petroleum Corporation (NNPC) has reported a N473.3 billion operating loss on three idle refineries in Warri, Port Harcourt, and Kaduna in the last six years.
This was revealed in a new report published by SBM Intelligence, a Lagos-based research firm.
According to the report titled operating moribund refineries, the losses occurred between January 1, 2015 to February 2021.
“In that time, only 6.73 per cent of their capacity has been utilised on average. In fact, none of the three refineries has produced a drop of refined petrol since July 2019, racking up over N185bn in losses,” the report stated
Breakdown of the operating losses incurred according to the firm showed that a N56.9 billion operating loss was recorded in 2015 and N5.5 billion in 2016.
The operating loss increased in 2017 to N32.8 billion and again to N126.2 billion in 2018.
Read also: NNPC redeploys staff, gets new spokesman
In 2019, despite the refineries reporting no fuel, N148.9 billion operating cost was reported.
In 2020 also no fuel but a loss of 101.6 billion was recorded.
So far in the first two months of 2021, the refineries have recorded a cumulative operating loss of N12.2 billion.
“And yet, there’s no sign of the expenditure slowing down. In March, the Federal Executive Council approved the sum of $1.5bn for the rehabilitation of the Port-Harcourt refinery,” the report continues.
“Nigeria must count the cost, not only of spending scarce resources on refineries that had not reached more than 30 per cent capacity in over six years but also of the income foregone from not privatising them,” SBM advised.
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
If you are motivated and passionate about building a global society, founded on justice, equity, fairness, transparency, accountability and superior knowledge, kindly consider donating to Ripples Nigeria’s solutions journalism.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
INVESTIGATION: Inside UNILAG’s multi-million naira budgetary abuse and academic discord
The University of Lagos located in Nigeria’s commercial capital, Lagos, has been embroiled in controversies with allegations bothering on misappropriation of...
SPECIAL REPORT: Displaced residents of Zamfara battle hunger, as underfunding derails Nigeria’s nutrition goals
On paper, Muhammad Zayyanu is seven years old. The quiet boy who looks shorter for his age could not recollect...
INVESTIGATION: N7.3bn paid for unnamed projects; how Nigerian govt spent N2.2trn in six months
Analysing nearly 3,000 payments made by various Federal Government Ministries, Departments and Agencies (MDAs) over the previous six months (January...
INVESTIGATION… Delay rocks Nigerian govt’s promise of N30,000 covid-19 relief for artisans, others
Before the outbreak of the COVID-19 pandemic in February, 2020, Chukwudi Okoroigwe’s daily earnings as a bus driver was hardly enough to cater to the...
INVESTIGATION… Ten years after, communities count losses as AfDB, Cross River govt abandon road project
Ten years after the Cross River State government and African Development Bank (AFDB) jointly awarded the Yahe-Wanokom-Wanikade-Benue border road for...