The operating deficit recorded by the nation’s refineries rose by 39 per cent to N132.5bn in 2018, compared to the previous year, data from the Nigerian National Petroleum Corporation showed on Tuesday.

The refineries posted a loss of N95.09bn in 2017, according to the NNPC data.

The refineries, which are located in Port Harcourt, Kaduna and Warri, have a combined installed capacity of 445,000 barrels per day but have continued to operate far below the installed capacity for many years.

Port Harcourt refinery, which did not process any crude oil in seven months, recorded the biggest loss of N59.96bn in 2018.

Kaduna refinery, which was idle for 11 months, lost N31bn while Warri refinery recorded a deficit of N41.71bn, according to the NNPC.

A total of N13.58bn was lost in January; N8.05bn in February; N11.88bn in March; N20.08bn in May; N14.51bn in June; N10.45bn in July; N10.79bn in August; N6.97bn in September, N9.32bn in October, N9.58bn in November and N17.31bn in December.

The refineries made a profit of N6.32bn in April for the first time in 10 months.

It was observed that Warri refinery was idle in January, September and October 2018.

The NNPC, in its monthly report released on Tuesday, said its group operating revenue for December stood at N731.88bn, N439.59bn higher than the previous month performance, while expenditure surged by N429.52bn.

It said, “This month’s revenue is far more than the budgeted revenue which resulted in a marked increase in trading surplus despite the drag in operating expenditure in the month.”

The corporation recorded a trading surplus of N12.13bn in December.

“This increased performance is attributable to NPDC’s higher revenue recorded during the period following NPDC continuous revenue drive, arising from recent average weekly production of 332,000bpd making the target of 500,000bpd for 2020 achievable. This also captured the updated previous months’ revenue and expense,” it said.

In January, the Petroleum and Natural Gas Senior Staff Association of Nigeria expressed its opposition to the current operating model for the nation’s refineries.

 


PENGASSAN described the model as unsustainable, calling for the adoption of the Nigeria LNG Limited’s business model “after the refineries must have been rehabilitated for them to yield better dividends to the nation’s economy.”

It also called on the government to increase local refining capacity and remove all observed encumbrances to full rehabilitation of all the four refineries


https://punchng.com/refineries-lost-n132bn-in-2018-says-nnpc/

Those refineries are a drain pipe. And very corruption prone. Endless turnaround maintainance yet no production. They should be sold off.

APC

When Atiku said our NNPC was a monster which drained money from the country nd nid to be sold, lots of folks was tongue lashing. just imagine what was loss in just a year

This is just decleared lost..

This was why i supported the auctioning of nnpc

BIGGIE121:
This was why i supported the auctioning of nnpc

Nothing but the Truth!

Is a working system truly rocket science in Nigeria despite the graduates we churn out each year? Well... many of our grads are busy yarning dust on Nairaland anyway. The old timers got the system on lockdown for us.

I support Atiku on selling that moribund conduit pipe of corruption called NNPc

aolawale025:
Those refineries are a drain pipe. And very corruption prone. Endless turnaround maintainance yet no production. They should be sold off.

Some people made 132B



That's should be the headline

Federal government stealing agency controlled by the very corrupt minister of petroleum that lacks integrity

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Realtord43:
When Atiku said our NNPC was a monster which drained money from the country nd nid to be sold, lots of folks was tongue lashing. just imagine what was loss in just a year

Atiku is right...but the problem is selling NNPC means that NNPC will be operating as a private company...which means fuel prices will shoot up to N250 and beyond...because NNPC is now no longer on government lifeline.

Then Nigerians don't like government selling government companies. Some people are still angry with PDP for selling NEPA.(Despite the fact that it was obvious privatization was needed)

Or they mean d petroleum minister aka buhari embezzled it abi...

RUBBISH

maybachmusic:



Some people made 132B



That's should be the headline

you mean corrupt people lol

NNPC is now becoming a liability really. People hated and voted against Atiku for saying he wants to sell it, but are we better with it? NO!

Atiku wants to breakdown and privatize NNPC, some gullible ones made noise about it. What's the point of having a suppose-cash cow, being a loss making corporation?

The money NNPC loses from it's refining operations is enough to refurbish thousands of schools and health centre.

It is lost to many Nigerians that government deliberately pouring water into a basket is a subtle form of corruption.

...Thats Next level

aolawale025:
Those refineries are a drain pipe. And very corruption prone. Endless turnaround maintainance yet no production. They should be sold off.

Basically, if subsidy was removed...NNPC would have the incentive and the means to keep the refineries working properly....because now, the refineries would be the source of cash.

But because subsidy is in place, NNPC keeps on selling fuel at a loss, and as a result, no money for new investments...which leads to corrruption because people will deliberately break parts to earn a little extra money for themselves.

How many of you discovered those Lucifer monikers comments has drastically reduced on Nairaland. seems the mods has done the right thing by banning them, or they have relocated back to hell.. lool

Truly refineries need be under a private company if effective and efficient production is to be achieved.

theoldpretender:


Atiku is right...but the problem is selling NNPC means that NNPC will be operating as a private company...which means fuel prices will shoot up to N250 and beyond...because NNPC is now no longer on government lifeline.

Then Nigerians don't like government selling government companies. Some people are still angry with PDP for selling NEPA.(Despite the fact that it was obvious privatization was needed)

Nope, you're wrong. It'll create room for proper deregulation of that sector and competition will strife. Same thing that happened to the telecommunications sector.
Just imagine it was government still running the telecommunications sector right now

theoldpretender:


Atiku is right...but the problem is selling NNPC means that NNPC will be operating as a private company...which means fuel prices will shoot up to N250 and beyond...because NNPC is now no longer on government lifeline.

Then Nigerians don't like government selling government companies. Some people are still angry with PDP for selling NEPA.(Despite the fact that it was obvious privatization was needed)

look truth be told, the price inceease compared to what we are paying now wont be much but it will only be for awhile. The monopoly will be taking from nnpc and you begin to see players un the industry take bold step and then the madket begins to experience big competition which ultimately begins to see price comparisons and eventually falls just like we experienced in the telecommunications sector and before you know it, we paying even less that 145 to say the least. best part is products will be refined locally to reduce cost drastically which means we can go back to days where we buy less that 50naira

Omooba77:

Port Harcourt refinery, which did not process any crude oil in seven months, recorded the biggest loss of N59.96bn in 2018.

Kaduna refinery, which was idle for 11 months, lost N31bn while Warri refinery recorded a deficit of N41.71bn, according to the NNPC.

And I was busy castigating Atiku for saying that NNPC should be sold.
Atiku may be wrong on other things but on NNPC he is right, so all these monies went into corrupt pockets while we were busy shouting PDP and APC upandan

gameboyo:

Nope, you're wrong. It'll create room for proper deregulation of that sector and competition will strife. Same thing that happened to the telecommunications sector.
Just imagine it was government still running the telecommunications sector right now

Yes, that's right.

But anytime I tell Nigerians on Nairaland that we have to deregulate and sell NNPC...that's when people will lam bast you well well.

EVEN when I bring up GSM and how it was deregulated from the start...how MTN SIM used to cost N10000 , and how a package from veego could coat as much as 23000 (veego is now airtel)...but thanks to deregulation prices came down....they will say it is different.