Nigeria’s refineries lost N158bn in 2019 amid paltry N959m revenue

Nigeria’s ailing refineries reported a total loss of N157.69 billion for the 2019 financial year as they generated a paltry N958.99 million in revenue.

The Nigerian National Petroleum Corporation, which runs the refineries – located in Port Harcourt, Kaduna and Warri, disclosed this on Thursday in its 2019 audited financial statements.

The financial statements showed that Port Harcourt Refining Company Limited generated zero revenue last year and made a loss of N46.95 billion, compared to N45.59 billion in 2018.

Kaduna Refining and Petrochemical Company Limited, which did not generate any revenue in 2018, posted N37.17 million in revenue last year. It reported a loss of N61.46 billion, down from N79.89 billion in 2018.

Warri Refining and Petrochemical Company Limited saw its revenue decline to N921.82 million from N1.99 billion in 2018. It posted a loss after taxation of N49.28bn, compared to N44.44bn in 2018.

The NNPC said in a statement on Thursday that the refineries maintained the same level of losses last year as in 2018, adding that the losses would reduce significantly in 2020 due to cost optimisation drive.

Nigeria, Africa’s biggest oil producer, relies largely on importation of refined petroleum products as its refineries have been moribund for many years as a result of mismanagement and corruption.

The Group Managing Director, NNPC, Mallam Mele Kyari, announced last year his plan to revamp the refineries and end fuel importation by 2023.