National Issues
Analysis: NNPC And Its Refining Losses -By William Ukpe
NNPC released its audited financial statements for 2018 on Monday, noting that its refineries recorded losses of N154 billion. As embarrassing and disappointing as it sounds, it is not as surprising.
With a total number of 897 staff working at the Kaduna Refinery in 2018, NNPC spent a total of N23.2 billion as total employee cost, despite producing zero revenue.
The refinery, however, engaged in some banking by lending to employees. The total value of interest on employee loans was N209 million, in the recently released documents. The highest-paid director at the Kaduna Refinery earned N33 million, accounting for salary and remuneration.
In the list of highest-paid employees, other than Directors, about 7 employees earned N9-10 million, with 10 earning N8-9 million and 10 earning N7-8 million.
The entire direct cost for the refinery was N24.6 billion while the total operating loss was N64.5 billion, with Zero revenue recorded.
NNPC’s privatisation was a talking point during the last election, as Atiku had promised to privatise it like Petrobras, and like the Saudis were planning then for Aramco, to reduce costs for the government.
Meanwhile, NNPC released its audited financial statements for 2018 on Monday, noting that its refineries recorded losses of N154 billion. As embarrassing and disappointing as it sounds, it is not as surprising.
The nation’s 3 refineries located in Port Harcourt, Warri, & Kaduna, reported combined losses of N154 billion. Kaduna Refining and Petrochemical Company (KRPC) incurred a loss of N64.5 billion, Port Harcourt Refining Company (PHRC) recorded a loss of N45.6 billion, while Warri Refining and Petrochemical Company (WRPC) recorded a loss of N44.4 billion.
The losses also aren’t new as all refineries performed better than the preceding year 2017. The only thing more confounding than the billions in losses is the convenience with which Kaduna refinery conveniently recorded zero revenue for 2018.
