Refineries: FG loses N19bn in two months

Chinazor Megbolu

The Federal Government of Nigeria lost N19 billion to its refineries in two months. Latest data posted by the Nigerian National Petroleum Corporation (NNPC) at the weekend, showed a record of N18.96 billion loss in the first two months of 2020.

The data also recorded that the refineries, being managed by the NNPC, lost N9.60 billion in January and N9.36 billion in February 2020 respectively.

The refineries, situated in Port Harcourt, Kaduna and Warri, the data maintained, have a combined installed capacity of 445,000 barrels per day but have continued to operate far below the installed capacity.

The federal government agency in April 2020, had noted that it secured funding for the rehabilitation of the ailing refineries.

However, the Group Managing Director, NNPC, Mallam Mele Kyari, disclosed that the corporation was pursuing “a different model” for the refineries, like the type used by the Nigeria LNG Limited, which is jointly owned by the Federal Government, represented by the NNPC (49 per cent), and three international oil companies, namely Shell (25.6 per cent), Total (15 per cent) and Eni (10.4 per cent).

Kyari, in the report revealed that the agency would no longer be involved in running the refineries after their rehabilitation.

He maintained that once the ongoing rehabilitation is completed, the services of a company would be procured to manage the plants on an operation and maintenance basis.

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

Kyari, since taking over the NNPC leadership in July 2019, had vowed to revamp the refineries and end fuel importation by 2023.