- The Nigerian National Petroleum Corporation has said that the country has lost a huge sum of money since the beginning of the year 2022
- NNPC said the money was lost due to the activities of vandals on oil pipelines and the operation of illegal refineries in Nigeria
- Making the revelation, the GMD of NNPC, Mele Kyari called for a joint security operation to put an end to the criminal activities hampering optimum production of oil in the country
With all the controversies raised over the impact of theft and vandalism on the production of oil in Nigeria, the Nigerian National Petroleum Corporation (NNPC) has reacted.
Mele Kyari, the group managing director of the NNPC on Thursday, April 7, said that Nigeria has lost $1.5 billion worth of crude oil from January to date.
Daily Trust reports that Kyari made the disclosure when he appeared before lawmakers of the House of Representatives.
Decrying the negative impact of vandalism and operators of illegal refineries on Nigeria's oil production, Kyari told the House committee on petroleum (upstream) that the sector was recording an all-time low in production.
PAY ATTENTION: Subscribe to Digital Talk newsletter to receive must-know business stories and succeed BIG!
Number of oil barrels produced in Niegria
The NNPC GMD revealed that the production of oil in the country currently stands at 1.49 million barrels per day due to an increase in the activities of vandals and operators of illegal refineries.
“What is going on has nothing to do with the PIA. It is purely an act of thieves; acts of vandals which have rendered the industry unworkable and taken us to the level where today, our production is around 1.49 million barrels per day.
“When you lose about 200,000 barrels per day, even at an average price of 65 dollars per barrel, we lost close to 1 billion dollars between January and March."
Nigeria counts losses due to criminalities
According to the NNPC GMD, Nigeria has lost an average of 250,000 barrels of oil per day since January.
Mele Kyari also added that with the current price of oil at about 100 dollars per barrel, the country has lost close to $1.5 billion.
He further urged the members of the House to order massive joint security operations to address the issue of oil theft and illegal refinery operations.
Port Harcourt leads as report shows NNPC spends over N63bn maintaining Nigeria's 3 idle refineries
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.
NNPC: Report reveals billions of naira petrol subsidy gulped in 7 months
Legit.ng had 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.