How Nigeria’s refineries made zero naira, spent N81.41b in eight months


A total of N81.41 billion was expended on Nigeria’s refineries between January and August this year, but the facilities refined no drop of crude oil all through this period.

The latest data obtained from the Nigerian National Petroleum Corporation, which showed this, gave details of how the refineries made zero naira but spent the N81.41 billion during the months under review.

Kaduna Refining and Petrochemical Company, Port Harcourt Refining Company and Warri Refining and Petrochemical Company posted a cumulative revenue of N6.54 billion during the eight-month period.

With a revenue of N6.54 billion and a total expense of N81.41 billion, the facilities ended up with a deficit of N78.87 billion, according to figures contained in the just-released August 2020 report of the NNPC.

Further analysis of figures from the latest report, as well as those earlier released by the corporation, showed that the revenue, expense and deficit of KRPC during the period under review were N6.22 billion, N33.61 billion and N27.39 billion respectively.

PHRC posted a revenue, expense and deficit of N61 million, N25.57 billion and N25.51 billion respectively from January to August 2020.

Similarly, WRPC earned a revenue of N257 million, incurred an expense of N22.23 billion and posted a deficit of N21.98 billion during the same period.

It was further gathered that for 13 straight months, the facilities had been running without refining any volume of crude oil.

Data from the consolidated refineries operations put the volume of crude processed by the facilities from August 2019 to August 2020 at zero metric tonnes.

With a cumulative plant capacity of 445,000 barrels per day, the facilities posted a capacity utilisation of zero per cent all through the 13-month period.

However, the volume of crude they recorded as closing stock between August 2019 and August this year was 3.78 million metric tonnes.

For several years, Nigeria has been importing the bulk of its refined petroleum products as a result of the inability of its refineries to refine crude oil produced within the country.

On Thursday, the Federal Government revealed that Nigeria, Africa’s biggest oil producer, was set to resume the importation of petroleum products from a neighbouring country, Niger Republic.

The Federal Ministry of Petroleum Resources said in a statement that the two countries signed a Memorandum of Understanding for petroleum products transportation and storage.

It said following bilateral agreements between the President, Major General Muhammadu Buhari (retd.), and his Nigerien counterpart, Mahamadou Issoufou, talks had been ongoing between the two countries for over four months – through the NNPC and Niger’s Societe Nigerienne De Petrole.

According to the statement, Niger Republic’s Soraz Refinery in Zinder, some 260km from the Nigerian border, had an installed refining capacity of 20,000 barrels per day.

“Niger’s total domestic requirement is about 5,000bpd, thus leaving a huge surplus of about 15,000bpd, mostly for export,” it said.

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