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HomebusinessOver N100bn Sunk On Refineries Rehabilitation, Pipelines By FG, Despite Counterproductivity

Over N100bn Sunk On Refineries Rehabilitation, Pipelines By FG, Despite Counterproductivity

On yearly basis, National Petroleum Corporation (NNPC) commits billions to three of its refineries despite relying on imports to meet demands In August 2021 the Federal Executive Council (FEC) approved the sum of $1.4bn(N573.8bn) for the rehabilitation of Warri and Kaduna refineries. According to NNPC records, over N100 billion was spent on refinery repairs and pipeline management this year.

The Nigerian National Petroleum Corporation (NNPC) has disclosed that from January to September a total of N109.85 billion has gone into refineries rehabilitation and pipelines in the first nine months of 2021. NNPC gave the figures in its latest FAAC report for October sighted by Legit.ng on Monday, December 1, 2021.

According to NNPC report, N34.85 billion went into pipelines security and maintenance while N75 billion was for the rehabilitation of unused refineries.

Refineries breakdown A breakdown on refineries rehabilitation cost, NNPC report shows that every month (January to September 2021) N8.33 billion was committed. NNPC currently has four idle refineries, two in Port Harcourt (PHRC), and one each in Kaduna (KRPC) and Warri (WRPC). However, since 2019, none of the refineries has been able to refine a drop of fuel, hence the country relies entirely on imports to satisfy demands. Pipeline repairs and security For pipeline repair and security, the report shows an average of N3.8 billion was spent monthly, with the biggest payout in July 2021. The breakdown from the report shows that NNPC disclosed no expenses in January but spent N5.81 billion on pipeline security and management in February. In March N5.32 billion was spent followed by N2.64billion in April; N5.26billionn in May; N6.17 billion in June, and N7.35 billion in July.

NNPC also did not record any expenses in August, however in September N2.30 billion was allocated to maintain, secure pipelines across the country. NNPC fails to explain missing N2trn worth of Oil Meanwhile, the Auditor-General has raised an alarm on domestic crude oil lifted by the NNPC and was not accounted for in 2019. The 104.48 million barrels of missing crude oil could have added at least N2 trillion to the federal government’s coffers. The federal government’s 2019 budget of N8.83trn was largely financed by debts which currently stands at N35.5trn as of June 30.

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