NNPC spends over N100bn  on refineries rehabilitation, pipelines in nine months

The Nigerian National Petroleum Corporation (NNPC) has disclosed that N109.85 billion has been expended on refineries rehabilitation and pipelines in the first nine months of 2021. 

The NNPC report showed that N34.85 billion went into pipelines security and maintenance while N75 billion was for the rehabilitation of unused refineries.

Legit.ng reported that a breakdown of the report indicated that N8.33 billion was committed monthly to refineries rehabilitation costs.

NNPC currently has four idle refineries, two in Port Harcourt (PHRC), and one each in Kaduna (KRPC) and Warri (WRPC), but 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.

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 N8.83trillion was largely financed by debts which currently stands at N35.5trillion as of June 30.