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NNPC Spent Over N100bn On Refineries, Pipelines In 9 Months

NNPC Spent Over N100bn On Refineries Repair, Pipelines In 9 Months

The Nigerian National Petroleum Corporation (NNPC) has reported it has spent N109.85 billion on the rehabilitation of refineries and pipelines in the first three quarters of 2021.

The NNPC report revealed that N34.85 billion was expended on securing pipelines and maintenance, also, N75 billion was for the rehabilitation of unused refineries.

An analysis of the report showed that N8.33 billion was set aside for the rehabilitation refineries, according to a report Legit.ng.

The NNPC presently has four idle refineries, two located in Port Harcourt (PHRC), while one is located in Kaduna (KRPC) and another Warri (WRPC). However, since 2019, none of the refineries has been able to refine crude oil, 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 further 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.

The Auditor-General reported that the NNPC lifted domestic crude oil but 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 N8.83trillion was largely funded by debts which presently stands at N35.5trillion as of June 30.

About Author

Victor Okeh is a graduate of Economics from Lagos State University. He is versatile in reporting business and economy, politics and finance, and entrepreneurship articles. He can be reached via – [email protected]

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