Shocker! See How NNPC Lost N120bn in Two Months Due to Mismanagement

Posted by Thandiubani on Mon 02nd Nov, 2015 - tori.ng

The Group Managing Director, NNPC, Dr. Ibe Kachikwu has thrown a shocker as he revealed that the country is yet in another crisis after details of how Nigeria lost N120billion in two months emerged.

Group Managing Director, NNPC, Dr. Ibe Kachikwu

A comprehensive report has emerged detailing how the Nigerian National Petroleum Corporation lost a total of N120.07bn in the months of August and September.

According to the report, the corporation incurred losses of N60.67bn and N59.4bn in August and September, respectively. It specifically stated that the national oil firm’s revenue in August was N146.617bn, while its expenses were put at N207.287bn. In September, the corporation’s total expenses were N171.914bn, while its revenue for the same month was N112.514bn.

An analysis of the report showed that the Pipelines and Products Marketing Company, a subsidiary of the NNPC, incurred the highest amount of losses in the two months under review. The report noted that the losses were incurred before subsidy, stating that the PPMC recorded a loss of N34.275bn in August and N57.677bn in September. It also showed that all government-owned refineries managed by the NNPC were still not making profit, despite claims that the facilities had started producing refined products for public consumption.

In August, the Kaduna Refining and Petrochemical Company, Port Harcourt Refining Company and Warri Refining and Petrochemical Company made a total loss of N6.575bn, while they recorded a loss of N11.381bn in September. The capacity utilisation of the WRPC and KPRC in September 2015, according to the report, was zero per cent, as both plants processed no crude oil in the month. The report, however, noted that the capacity utilisation of the PHRC was 4.15 per cent as the facility processed 35,648 metric tonnes of crude oil.

The Group Managing Director, NNPC, Dr. Ibe Kachikwu, had stated during his screening as a minister by the Senate recently that non-performing refineries would be shut down at the expiration of a 90-day performance deadline given them by the oil firm. The ultimatum was given to the respective management of the refineries by the GMD in September, mandating the plants to commence full production before the expiration of the deadline.