NNPCL revenue falls short by N67.7bn in 7 months

The Nigerian National Petroleum Company Limited (NNPCL) achieved a total gross revenue of N2.836 trillion between January and July 2022, this was however N67.7 billion short of the N2.904 trillion projected for the period.

Data garnered from the company’s monthly revenue and distribution report shows that in the first four months of the year the revenues generated fell short of the N414.9 billion monthly target.

Further analysis of the report showed that in the first quarter of the year, NNPCL generated N1.030 trillion in gross revenue achieving N383.09 billion in January, N273.59 billion in February and N374.12 billion in March.

In the second quarter, the company recorded N1.357 trillion in gross revenue with N396.482 billion, N470.610 billion and N490.187 billion in April, May and June respectively while N448.782 was realized in July.

The report also showed that NNPCL did not remit any money to the federation account during the review period although the sum of N1.231 trillion was projected for this purpose year to date (YTD).

During this period, NNPCL budgeted N5.129 billion for pipeline security and maintenance costs but spent N12.425 billion while N54.663 was spent on refinery rehabilitation although N63.774 billion was planned for this.

Read also:Seven milestones eNaira achieved in one year – CBN

Mele Kyari, group chief executive officer, NNPCL said in August during a visit to Ifeanyi Okowa, governor of Delta that Nigeria hardly meets the OPEC production quantum of 1.99 million barrels per day with its current production level of 1.4 million barrels daily which is being threatened by the activities of economic saboteurs.

Other than its inability to meet the daily production volume, Kyari said Nigeria loses $1.9 billion monthly to crude oil theft.

Recently, the company uncovered an illegal four-kilometer pipeline from Forcados in Delta State to the sea and a loading port that was part of an elaborate crude theft operation for the last nine years.

Kyari revealed that three operational facilities of Forcados, Bonny and Brass oil terminals have all been shut down as a result of the high rate of crude oil theft, leading to the loss of about 600, 000 bpd.

Some other projects the NNPCL committed funds to include the national domestic gas development, gas infrastructure development, Nigeria Morocco pipeline, etc.

Following the NNPCL’s transition into a limited liability company, whose operations will be run in compliance with the provisions of the Companies and Allied Matters Act (2020), Stakeholders in the industry are optimistic that this will help the company efficiently utilize the country’s oil and gas resources after many decades of operating below par.

The commercialization is also expected to increase the revenue base of the government as the PIA mandated that where the NNPC Limited has a participating interest or 100 percent interest in a lease or licence, it shall pay its share of all fees, rents, royalties, profit oil shares and taxes and any other required payments to the government.