Again, Nigeria’s Refineries Posted Combined N123b Loss

refineries
  • Again, Nigeria’s Refineries Posted Combined N123b Loss

The Nigerian National Petroleum Corporation (NNPC) said the nation’s refineries made a combined loss of N123.25 billion between January and October 2019.

The details disclosed in its latest report released on Wednesday shows all three refineries recorded losses during the period under review.

A breakdown of the report shows Kaduna Refining and Petrochemical Company posted a loss of N49.3 billion in the 10-month period. While the Port Harcourt Refining Company and Warri Refining Petrochemical Company lost N36.7 billion and N37.24 billion, respectively.

Accordingly, the three refineries made combined N68.82 billion in revenue during the period while expenses stood at N192.1 billion.

Out of the three refineries, Warri generated the most revenue of N59.1 billion, however, it posted the highest loss of N96.32 billion.

Kaduna and Port Hacourt realised N6.23 billion and N3.46 billion but posted N55.59 billion and N40.16 billion, respectively.

In October alone, the refineries posted combined loss of N11.72 billion, while individual losses in the same month were N5.24 billion for Kaduna, N3.38 billion for Port Harcourt and N3.1 billion for Warri.

Industrial experts have said government should focus on refinery investment and cut petrol subsidy holding the nation back.

“PENGASSAN has always called on the government of the day to ensure that our refineries are functioning optimally. The humongous amount spent on petrol subsidy should be invested in our refineries,” PENGASSAN spokesperson, Fortune Obi, said.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

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