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Why heads can’t roll on three-straight-year losses posted by NNPC

The revelation that Nigerian refineries lost about N377bn in three straight years has continued to elicit reactions from business intelligence experts.

Official figures obtained from the Nigerian National Petroleum Corporation (NNPC) have made it clear that Nigeria’s ailing refineries lost a total of N376.56bn in the last three years, but no officer or staff of any of the refineries had received a single query on why the national assets had remained in financial retrogressive in the last three years.

Some industry analysts who barred their minds fingered political interference veiled with personal financial interests and lack of the spirit of nationalism on the part of detailed authorities manning the public assets.

The data garnered from the Corporation showed that the trading deficit (loss) recorded by the refineries rose by 12.43 per cent to N148.97bn in 2019, compared to 2018.

The refineries posted a loss of N132.50bn in 2018, up from N95.09bn in 2017, according to the NNPC data. 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.

The NNPC, in its latest Monthly Financial and Operations Report released on Sunday, said the refineries lost N13.56bn in December. They lost N8.36bn 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; N7.07bn in September; N11.72bn in October; and N12.52bn in November. Kaduna refinery lost N58.97bn; Warri refinery, N45.18bn; and Kaduna refinery, N44.75bn.