The Nigerian National Petroleum Corporation lost N473.3 billion from operating its four refineries in Port-Harcourt, Warri, Kaduna within 6 years, a report has said.
Research findings according to SBM Intelligence, a Lagos-based consultancy said that Nigeria’s refineries are becoming an increasingly expensive pastime.
Between January 2015 and February 2021, the NNPC posted a combined loss of ₦473.3 billion while operating the refineries.
In that time, only 6.73 percent of their capacity has been utilised on average. In fact, none of the three refineries has produced a drop of refined petrol since July 2019, racking up over ₦185 billion in losses.
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The Nigerian government is seeking to rehabilitate the refineries and has awarded repair contracts valued at about $3billion.
In March, the government awarded Italian engineering company Technimont SPA the contract to fix the Port-Harcourt refinery for the sum of $1.5 billion (N606 billion). This will be done in three phases of 18, 24 and 44 months.
The government has further awarded the sum of $1.48 billion for the rehabilitation of the Kaduna and Warri refineries. Saipem SPA, another Italian company is charged with the repairs.
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