- The Nigerian National Petroleum Corporation reports that N104.3 billion was lost between February last year and February 2021
- The government-owned oil company recorded 13 months loss as the country's crude oil refiner didn't operate within the period
- Consolidated financial statements of NNPC stated that the highest loss was N10.3 billion in March 2020, and the lowest is N5.3 billion in January 2021
In thirteen months, the Nigerian National Petroleum Corporation (NNPC) generated more losses than gains, its financial statements have shown.
It was reported that N104.3 billion was lost between February last year, to the same period in 2021 following zero crude oil refining during the timeframe.
The losses occurred in Kaduna Refining and Petrochemical Company, Port Harcourt Refining Company and Warri Refining and Petrochemical Company.
What you should know
According to the consolidated refinery financial performance, it was gathered that in February 2020, N9.36 billion was lost, in March, N10.3 billion was also reportedly lost.
In April, the Nigerian-government owned agency reported N9.69 billion loss. In May, it was N9.55 billion, June accounted for N10.23 billion.
The figure dropped to N9.1 billion in July, and in August, it declined further to N7.1 billion. In the next month, NNPC recorded N7.04 billion, before recording another loss of N5.49 billion in November.
During the last month of last year, NNPC reported N8.28 billion, but it dropped to N5.37 billion in January, before recording another loss of N6.88 billion in February 2021.
NNPC blamed the losses on lack of operation by three refineries which it said are undergoing rehabilitation works:
“The declining operational performance is attributable to ongoing revamping of the refineries, which is expected to further enhance capacity utilisation once completed.”
Minister wants fuel subsidy removed
In related news, the Minister of State for Petroleum, Timipre Sylva, has advised the government to stop subsidising fuel consumption.
Sylva said he is not in support of fuel subsidy as it draws the country back and delays progress. He said selling at reflective market price will do more good.
He explained that if subsidy remains in fuel sales, the rehabilitation of refineries won't stop losses from being recorded by the NNPC.