Business Hilights
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Can NNPC explain N68.82bn income with N192.1bn OPEX on three refineries?

The happiness of many industry watchers on recent financial statements of several subsidiaries of the Nigerian National Petroleum Corporation (NNPC) showing boom in income seemed to have been cut short with latest financial reports coming from the Corporation.

Besides, many watchers of Nigeria public finance had expected the Chief of Staff to the President, Mr Abba Kyari to equally issue the kind of query he gave former Chairman of FIRS for the embarassing nonperformance in revenue generation.

This is based on the fact that latest figures released on Wednesday showed that all three national refineries under the management of the Corporation made a cumulative loss of N123.25bn from January to October 2019.

Fact checks from the report seen by Business Hilights Abuja Bureau chief showed that in the October 2019 oil and gas report of the NNPC, all three entities recorded losses during the period under review.

Note that refineries under NNPC management include the Kaduna Refining and Petrochemical Company, Port Harcourt Refining Company and Warri Refining and Petrochemical Company.

Additional review of the report indicated that the actual revenue made by the three facilities during the period was N68.82bn while their expenses were put at N192.1bn.

An abridged breakdown simply showed that whereas KRPC posted a loss of N49.3bn in the 10-month period, PHRC and WRPC lost N36.7bn and N37.24bn respectively during the period under review.

Though all the three refineries were on deep losses, closer look revealed that while WRPC made the highest revenue of N59.1bn during the period, it also posted the highest loss of N96.32bn.

KRPC and PHRC made N6.23bn and N3.46bn as revenues in the 10-month period but lost N55.59bn and N40.16bn respectively, indicating that the acclaimed financial and operational reforms so far made by the leadership of Borno State-born Mele Kyari have failed to produce any credible progress.