The three refineries owned by the Federal Government lost a total of N111.27bn from January to September this year, the Nigerian National Petroleum Corporation said in its September report.

The refineries posted a loss of N96.31bn in the same period in 2018, according to the NNPC data obtained by our correspondent on Monday.

Nigeria, Africa’s top oil producer, relies largely on importation for refined petroleum products as its refineries have remained in a state of disrepair for many years despite several reported repairs.


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.

They lost N8.362bn in January; N10.26bn in February; N16.04bn in March; N11.44bn in April; N13.63bn in May, and N17.42bn in June.

The plants recorded a loss of N13.84bn in July; N13.21bn in August and N7.07bn in September.

Kaduna refinery, which did not process any crude in eight months, lost N44.06bn, according to the NNPC.


Warri lost N33.88bn as it did not process any crude oil in April, June, July, August and September.

Port Harcourt refinery posted a loss of N33.31bn as it was idle in January, April, May and June, July, August and September.

“Similar to August 2019, no white product (petrol and kerosene) was produced in September 2019. The lack of production is due to ongoing rehabilitation works at the refineries,” the corporation said.


The NNPC said it had been adopting a merchant plant refineries business model since January 2017.

It said the combined value of output by the three refineries (at import parity price) for September amounted to N1.03bn.

The national oil firm said, “No associated crude plus freight cost for the three refineries since there was no production while operational expenses amounted to N11.24bn.

“This resulted in current operating deficit of N10.20bn and an adjusted deficit of N7.07bn by the refineries; after adjusting for prior overstated deficits by PHRC.”


In the first term of President, Major General Muhammadu Buhari (retd), the NNPC had planned to rehabilitate the refineries in order to attain a minimum of 90 per cent capacity utilisation, using third-party financiers and the original refinery builders to provide the requisite funding and technical support.

However, after over one and a half years, negotiations with financiers stalled in December 2018 due to varying positions on key commercial terms.

The Minister of State for Petroleum Resources, Chief Timipre Sylva, said in October that the rehabilitation of Port Harcourt refinery was ongoing, adding that Warri and Kaduna refineries would be revamped in the first half of next year.

https://punchng.com/refineries-lost-n111bn-in-nine-months-says-nnpc/amp

how much does a new refinery cost?

As usual. Those refineries aren't meant to work.
Importation ensures more choppings

After the fraudulent fuel subsidy this is the next course of corruption in the NNPC.These redundant refineries are just conduit pipes for embezzlement and stenching corruption.The Turn-Around Maintenance(TAM) is one of the major source of this NNPC-just like servicing Nigerian debts.

Meanwhile,

"Gen.Muhammadu Buhari,the APC presidential candidate has promised to build FOUR new petroleum refineries in Nigeria if elected president during the forthcoming elections taking place later this month..."

http://africanripples.com/buhari-promises-four-new-petroleum-refineries-if-elected-president/

"Nigeria’s former Minister of Petroleum Resources-Ibe Kachikwu,has admitted the failure of President Buhari’s administration to give Nigerians refinery as promised in the run-up to the 2015 presidential election...."

http://saharareporters.com/2019/06/08/buharis-administration-failed-nigerians-not-building-refinery-promised-kachikwu

I still don’t understand why we have to keep running the useless refineries at a loss. It is not as if there is any serious refining of Petroleum products happening in any of them. So, why spend so much money on them? Government should sell those useless piece of steel at scrap value.

seunmsg:
I still don’t understand why we have to keep running the useless refineries at a loss. It is not as if there is any serious refining of Petroleum products happening in any of them. So, why spend so much money on them? Government should sell those useless piece of steel at scrap value.

But when Atiku said he will sell NNPC u guy were shouting corrupt Atiku. Ur messiah has been minister for Petroleum for past 5 year no meaningful achievement, it obvious that the amount of subsidy been paid by his administration keep skyrocketing yearly after claiming subsidy is a scam .
I thought he said he will build more refineries, bring back price of petroleum to #45/liters. Are you guys not ashamed of this administration. Don't u guys observe that nothing is working in this fail nation ?
Who is fooling who ?

Ideally, those scraps should be auctioned off to serious businessmen.
But the government is more interested in playing to the gallery.

When OBJ sold the refinery, many condemned him for selling Nigeria's properties
and Yaradua reversed the sales.

Imagine how many billions would have been saved if those sales weren't reversed.

Almost 2 state's allocation

Lalasticlala
OMAJ
Obyniscop

Yet someone said we should keep on wasting money on funding what is bring losses.
Seun must hear this.