NNPC’s trading deficit soars by 200% to N30.8bn in one month

The Nigerian National Petroleum Corporation (NNPC) Wednesday said its trading deficit for April ballooned by 200 per cent to N30.81 billion from the N9.53 billion posted in the previous month, citing coronavirus constraints to its subsidiary operations among other reasons.

Principally contributing to the state-owned corporation’s abysmal performance was the 29 per cent deficit rise reported by its petroleum exploration and production unit, Nigerian Petroleum Development Company, its monthly financial and operations report for April posted on its website stated.

“In addition, PPMC, NGMC and Duke Oil Incorporated posted reduced surpluses arising from the COVID-19 effect of reduced demand, fluctuating prices and marketers’ unwillingness to lift products thus affecting revenue.”

Only the Port Harcourt Refining Company of all the NNPC-managed refineries processed crude estimated at 41,878 metric tonnes, with no finished products from the rest.

Read also: Oil unions rue NNPC sacking of 850 refinery workers amid COVID-19 pandemic

For this reason, the consolidated output value of the three refineries in the month under review stood was N780 million while operational expenditure stood at N9.69 billion, triggering an operating deficit of N9.69 billion in refinery operations.

On the supply side, 0.94 billion litres of gasoline equivalent to 31.37 million litres per day were distributed in the downstream sector.

Pipeline vandalisation incidence aggravated by 242 per cent, with breach points rising from 19 to 65.

“ATC-Mosimi accounted for 55% while Mosimi-Ore recorded 22% and other locations make up for the remaining 23%,” NNPC added.

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