NNPC Refineries Generate Zero Revenue, Pay Workers ₦69 Billion

Employees on the government-owned refineries had been paid a complete of N69.07bn final yr, even because the crops generated zero income as they didn’t course of a single barrel of crude oil.

The refineries suffered a mixed lack of N108.29bn in 2020, in comparison with N162.22bn within the earlier yr, in response to knowledge collated from their audited monetary statements launched by the Nigerian Nationwide Petroleum Company on Wednesday.

The crops, that are situated in Port Harcourt, Kaduna and Warri, have a mixed put in capability of 445,000 barrels per day however have been in a state of disrepair for a few years.

Kaduna Refining and Petrochemical Firm reported a loss after tax of N55.77bn final yr; Port Harcourt Refining Firm recorded N28.67bn loss; and Warri Refining and Petrochemical Firm posted a lack of N23.85bn.

Salaries, wages and different fringe advantages paid to Kaduna refinery staff fell to N26.02bn in 2020 from N34.52bn within the earlier yr.

Port Harcourt refinery put its combination payroll prices (wages, salaries and allowances, redundancy and pension prices) at N22.55bn, up from N18.62bn a yr earlier.

Warri refinery mentioned its combination prices of workers, comprising direct labour price and oblique labour and employees welfare price, dropped to N20.51bn final yr from N30.86bn in 2019.

“For the yr 2020, the corporate didn’t earn any revenue by way of shutdown of the crops and the continuing turnaround upkeep,” KRPC mentioned.

In keeping with the monetary statements, the corporate depends on short-term funding from NNPC to fulfill its obligations as and when due.

“Though the funding association is brief time period in nature, the administrators, based mostly on historic patterns and continued discussions, with the dad or mum, consider that the funding will probably be out there for a minimum of the subsequent one yr,” it mentioned.

PHRC mentioned the N28.674bn loss it incurred final yr arose “principally from the lack of the corporate to refine single drop of crude within the yr 2020 and different earlier years in portions and at charges above its break-even factors, therefore it was unable to earn sufficient income to cowl its prices.”

“Nonetheless, the dad or mum firm, Nigerian Nationwide Petroleum Company is dedicated to persevering with to help the sustenance of its operations by way of satisfactory funding,” it mentioned.

The corporate famous that the Federal Authorities had accredited the sum of $1.5bn to rehabilitate the ageing crops in direction of productive and worthwhile use.

“Doubtless, if this plan is absolutely executed, the reoccurring losses will cease within the yr 2023, which is the anticipated date of finishing the phase one of many rehabilitation challenge,” it added.

In keeping with PHRC, the NNPC offered N107.86bn as of December 2020 to the corporate underneath a funding association that’s interest-free.

“An quantity of N448bn is due from the corporate to the NNPC as at December 2020 and N361bn in yr 2019 underneath this association,” it mentioned.