NNPC Spends Over N63bn Maintaining Nigeria’s Three Idle Refineries

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

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.

Also Read: Oil Marketers Disagree With Depot Owners Over Petrol Price Hike

The Data shows that 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.

The report says “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.”

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

In the last seven months, Petrol subsidy payments amounted to N714 billion, shrinking monthly revenue accrued to the federation account.