Home News NNPC Refineries Generate Zero Revenue Pay Workers N69bn

NNPC Refineries Generate Zero Revenue Pay Workers N69bn

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Employees on the government-owned refineries had been paid a complete of N69.07bn final 12 months, even because the vegetation 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 12 months, in accordance with information collated from their audited monetary statements launched by the Nigerian Nationwide Petroleum Company on Wednesday.

The vegetation, that are positioned 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 12 months; 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 employees fell to N26.02bn in 2020 from N34.52bn within the earlier 12 months.

Port Harcourt refinery put its combination payroll prices (wages, salaries and allowances, redundancy and pension prices) at N22.55bn, up from N18.62bn a 12 months earlier.

Warri refinery stated its combination prices of workers, comprising direct labour value and oblique labour and workers welfare value, dropped to N20.51bn final 12 months from N30.86bn in 2019.

“For the 12 months 2020, the corporate didn’t earn any revenue by shutdown of the vegetation and the continued turnaround upkeep,” KRPC stated.

Based on 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, primarily based on historic patterns and continued discussions, with the mother or father, consider that the funding can be accessible for at the very least the subsequent one 12 months,” it stated.

PHRC stated the N28.674bn loss it incurred final 12 months arose “principally from the lack of the corporate to refine single drop of crude within the 12 months 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 mother or father firm, Nigerian Nationwide Petroleum Company is dedicated to persevering with to assist the sustenance of its operations by ample funding,” it stated.

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

“Doubtless, if this plan is totally executed, the reoccurring losses will cease within the 12 months 2023, which is the anticipated date of finishing the part one of many rehabilitation mission,” it added.

Based on PHRC, the NNPC offered N107.86bn as of December 2020 to the corporate beneath 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 12 months 2019 beneath this association,” it stated.

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