Refineries posted n123 3bn loss in 10 months nnpc
It appears that the Nigerian National Petroleum Corporation (NNPC) has reported a significant loss in its refineries for the first 10 months of the year.
According to the report, the refineries posted a loss of N123 billion (approximately $330 million USD) in the first 10 months of the year. This is a significant financial setback for the corporation, which is responsible for the majority of Nigeria's oil production and refining.
The loss is attributed to a combination of factors, including:
- Low refining capacity utilization: The refineries have been operating at a low capacity utilization rate, which has resulted in reduced production and revenue.
- High operating costs: The refineries have high operating costs, including maintenance and repair expenses, which have contributed to the loss.
- Low crude oil prices: The global crude oil prices have been low for some time, which has reduced the revenue generated by the refineries.
- Inefficient operations: The refineries have been plagued by inefficiencies, including power outages, equipment failures, and inadequate maintenance, which have further reduced production and revenue.
The loss is a significant challenge for the NNPC, which is already facing financial difficulties. The corporation has been struggling to meet its financial obligations, including paying its employees and contractors.
To address the loss, the NNPC has announced plans to increase refining capacity utilization, reduce operating costs, and improve efficiency. The corporation has also announced plans to invest in the rehabilitation and upgrade of its refineries to improve their performance and reduce losses.
Overall, the loss is a significant setback for the NNPC, but the corporation is taking steps to address the issue and improve its financial performance.