FG Loses N84bn To Under-Performing Refineries
Nigeria has lost N84bn from January to November, 2018, due to its under-performing refineries, according to a report by the Nigeria National Petroleum Corporation (NNPC).
The country manages three refineries which are: the Warri Refining and Petrochemical Company, Port Harcourt Refining Company, and the Kaduna Refinery and Petrochemical Company.
They have an installed capacity of 445,000 barrels daily, with the Port Harcourt refinery recording the biggest deficit of N35.58bn.
This was followed by Kaduna (N28.21bn) and Warri (N20.4bn).
“The combined value of output by the three refineries (at import parity price) for the month of November 2017 amounted to N13.08bn while the associated crude plus freight costs and operational expenses were N15.21bn and N9.02bn, respectively,” the NNPC report said.
“This resulted in an operating deficit of N11.15bn by the refineries. Also, during the period under review, refineries’ combined capacity utilisation was 5.92 per cent.”
The KRPC did not process any crude oil from June to November last year; the WRPC was shut down in March, May, June and September, and the PHRC was idle in August and November.
The three government-owned refineries lost N16.67bn in the third quarter of the year, the NNPC data indicated.
The NNPC recorded a trading deficit of N6.79bn in November, which is higher than October’s deficit of N410m.
According to the corporation, the drop is due to increased cost in upstream activities and reduction in revenue in the downstream value chain.
