Port Harcourt Leads as Report Shows NNPC Spends Over N63bn Maintaining Nigeria's 3 Idle Refineries

Port Harcourt Leads as Report Shows NNPC Spends Over N63bn Maintaining Nigeria's 3 Idle Refineries

  • The NNPC has continued to commit billions of Naira to its refineries located in Port Harcourt, Kaduna and Warri
  • A report noted that in two years, the refineries have gulped over N63 billion without a single drop of oil produced
  • Between 2020 and 2021, data from the National Bureau of Statistics shows NNPC has spent over 6 trillion importing refined crude oil

The Nigerian National Petroleum Company Limited (NNPC) has reported N63.3 billion on its three refineries located in Port Harcourt, Warri and Kaduna.

The losses reported by the refineries occurred from September 2020 to August 2021, according to the latest NNPC data, Businessday reports.

During this period, the refineries produced no crude oil while NNPC committed over N6 trillion for the importation of Premium Motor Spirit (petrol) in 2020 and 2021.

Read also

List of 24 states that attracted zero foreign investments in 2021

Port Harcourt refinery, NNPC
Port Harcourt oil refinery Credit: Andrew Holt
Source: Getty Images

The National Bureau of Statistics report on trade revealed that in 2021, petrol importation jumped by 97.01 per cent to N3.96 trillion from N2.01 trillion spent in 2020.

PAY ATTENTION: Subscribe to Digital Talk newsletter to receive must-know business stories and succeed BIG!

Breakdown of NNPC expenditure on its refineries

Data from the report showed that Port Harcourt Refining and Petrochemical Company, Warri Refining and Petrochemical Company, and Kaduna Refining and Petrochemical Company recorded operating deficits of N26.89 billion, N21.2 billion, and N15.18 billion, respectively in the period under review.

Part of the report reads:

"The three refineries processed no crude in the period, and their combined yield efficiency was zero percent, owing largely to ongoing refinery rehabilitation.
"The declining operational performance is attributable to ongoing revamping of the refineries, which is expected to further enhance capacity utilisation once completed."

NNPC: Report Reveals Billions of Naira Petrol Subsidy Gulped in 7 Months

Read also

Nigeria's foreign reserves deplete further despite oil prices as CBN withdraws almost a billion in 3 months

Legit.ng has reported that a report indicates that Petrol subsidy payments gulped N714 billion in the last seven months, shrinking monthly revenue accrued to the federation account.

The subsidy or under-recovery is the underpriced sales of premium motor spirit (PMS), better known as petrol.

Legit.ng gathers that the document obtained showed that the country spent a total of N714.79 billion year-to-date to cater for the cost of petroleum shortfall, also known as under-recovery.

Source: Legit.ng

Tags:
Online view pixel