‘Unproductive’ Refineries Suffer 13-Month Loss of N104.3bn

'Unproductive' Refineries Suffer 13-Month Loss of N104.3bn

The latest report released by the Nigerian National Petroleum Corporation (NNPC) showed a total loss of N104.3bn on Nigeria’s refineries in 13 months.

The report is despite the fact that the facilities refined no crude oil throughout the period. According to the analysis of the updated consolidated refinery financial performance from February 2020 to February 2021, the plants maintained losses monthly.

The refineries being managed by the NNPC include Kaduna Refining and Petrochemical Company, Port Harcourt Refining Company, and Warri Refining and Petrochemical Company.

According to the figures from the corporation,the monthly operating expenditures of the refineries surpassed their revenues all through the 13-month duration.

In February, March, April, May, June, July and August 2020, the consolidated losses of the refineries were N9.36bn, N10.3bn, N9.69bn, N9.55bn, N10.23bn, N9.1bn, and N7.1bn respectively, while the corporation in September, October, November and December 2020, posted cumulative losses of N7.04bn, N5.49bn, N5.99bn, and N8.28bn respectively.

Their consolidated losses continued in 2021, as they lost N5.37bn and N6.88bn in January and February this year, being the most recent update from the corporation.

Through these months, the refineries were unable to refine crude oil.

“In February 2021, the three refineries processed no crude, and combined yield efficiency is 0.00 percent owing largely to ongoing rehabilitation works in the refineries.

“The declining operational performance is attributable to the ongoing revamping of the refineries, which is expected to further enhance capacity utilisation once completed,” it said.

According to the NNPC, it had been adopting a merchant plant refineries business model since January 2017. The model took cognisance of the products worth and crude costs, as it noted that the combined value of output by the three refineries (at import parity price) for February 2021 amounted to approximately N0.10bn.

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