FG refineries lose N778bn in five years

The data analysis collated from financial statements of Nigerian National Petroleum Corporation (NNPC), has shown that the government-owned refineries loss N778.71bn from 2015 to 2019.

The refineries located in Port Harcourt, Kaduna and Warri, have a combined capacity to produce 445,000 barrels per day.

Port Harcourt Refining Company which generated N10.33bn revenue from 2015 to 2019 also recorded a loss of N229.14bn.

According to the data, the refinery generated no revenue in 2019 while N1.46bn was generated in 2018, revealing that N4.82bn was generated in 2017 and N3.37bn in 2016, N683.52m in 2015.

Federal Government lost N50.53bn in 2019, N45.59bn in 2018, N53.77bn in 2017, N43.44bn in 2016 and N35.81bn in 2015.

Kaduna Refining and Petrochemical Company generated N4.17bn while it loses N307.27bn in a period of five-years.

According to Warri Refining and Petrochemical Company, a revenue of N6.62bn was generated and a loss of N242.30bn in the period under review.

A loss of N51.66bn in 2019 was recorded by the Refinery compared to N52.18bn in 2018, N84.60bn in 2017, N24.50bn in 2016 and N29.36bn in 2015.

Also, Kaduna refinery 2019 annual report stated that their loss was caused by its inability to operate.

NNPC’s monthly report indicated that Port Harcourt refinery had stopped processing crude oil since April 2019. It further stressed that Warri and Kaduna refineries followed suit in May and June 2019 respectively.

However, the Federal Executive Council on Wednesday approved the sum of $1.5bn to rehabilitate the Port Harcourt Refinery.