Outrage As NNPC Reveals Kaduna Refinery Incurred N64 Billion Operating Cost With Zero Revenue

The Nigerian National Petroleum Corporation (NNPC) has published audited financial statements online in a bid to improve transparency around its operations.

Bloomberg reported that the corporation has been criticised for years of conducting Nigeria’s oil business in secret by publishing only unaudited financial reports.

The statements published on the company’s website on Sunday were for 2018 and were signed by the Group Managing Director, Malam Mele Kyari.

National Petroleum Investment Management Services (NAPIMS) is the group’s most profitable division, according to the statements.

It reported revenue of N5.04 trillion ($13 billion) in 2018 and profit of N1.01 trillion. That compares with a loss of N1.65 trillion in 2017.

The report shows total assets managed by NAPIMS at N18.6 trillion, with the oil and gas components valued at N14.2 trillion.

Its oil production subsidiary, the Nigerian Petroleum Development Company (NPDC), reported a post-tax profit of N179 billion in 2018.

The corporation’s three refineries in the country reported a combined loss of N154 billion with the Kaduna refinery recording zero revenue after spending N64 billion on operating cost for that year 2018.

The N64 billion spent on Kaduna Refinery which recorded zero revenue has sparked outrage among Nigerians on social media.

Kaduna Refinery made zero (0) revenue in 2018 FY but incured a total cost of N64 Billion.

Why are we wasting these funds? When you start buying diesel to power a refinery’s gen set, you know there’s big trouble. pic.twitter.com/PaVIe77F2q

— L'bookie🌍 (@ooyeboade) June 14, 2020

When Atiku said NNPC should be sold off, Buharideens offed the pants and went to town crying. Now look at this.

In 2018, Kaduna Refinery generated 0 naira as revenue but had an Operating cost of N64 Billion. Even Invictus Obi won't do this kind of day light robbery. pic.twitter.com/fpLyyECZA0

— Ifeanyi Emerald Ounah™® (@ify_zoe) June 14, 2020

Atiku warned sha., But Nigerians love socialism too much, we acted like we own NNPC.

NNPC is a complete waste, just NITEL that has refused to die

The 64 Billion wasted to produce nothing won't end anytime soon

People that thought searching for Oil in the North was a good idea.

— William (@_SirWilliam_) June 14, 2020

Please can you people dead this Atiku nosense😏Atiku ko Athiefku ni…sell NNPC to who???hiss
Don't you people like good things? don't you want good things for your children,after this fool in power,its hard to believe Nigerians will still wish anoda illiterate on themselves!!!😠

— BA❣ (@mimee803) June 15, 2020

Quick glance at NNPC’s 2018 audited financials reveals some of the things we already know. The corporation has a low leverage. Refineries are useless and a big drain on resources. There is so much room for efficiency: NPDC’s gross margin was 25% against 50% for Seplat same year.

— Omotola Abimbola (@Tola_Abimbola) June 14, 2020

When Atiku Abubakar said he's going to privatize NNPC Our people came up with stories that he want to sell it to his friends. Now NNPC incurred 64billion direct cost with Zero (0) revenue.
I hope we will be wiser by 2023. pic.twitter.com/MLCwnlTRO1

— Adedeji A Ayodeji 🎬 (@a_aadedeji) June 14, 2020

Obasanjo sold those refineries but Alhaji Yaradua gave it back to the bureaucrats. At least N600bn in losses, wiped out all the gains made by NNPC in gas sector.

Nigeria, a country governed by bandits.

— Olúseun Onígbíńdé (@seunonigbinde) June 14, 2020

https://twitter.com/Ambrosia_Ijebu/status/1272214364918034437?s=20

https://twitter.com/Ambrosia_Ijebu/status/1272261289734217730?s=20

To think some people didn't vote Atiku because of his intention to sell NNPC.. Lol
Nigerians want someone that will continue to fool them with "Some Countries begged Nigeria for food" than someone that will work with facts and reality. Sigh

— Premier (@SodiqTade) June 14, 2020

The NNPC of South America, Petrobras had a revenue of $90 Billion and profit of $6 Billion in 2018.

Petrobras has been partially privatised and you can buy shares on the New York Stock Exchange.

But Nigerians enjoy wasteful govt spending, so NNPC privatisation is a no no…

— William (@_SirWilliam_) June 14, 2020

https://twitter.com/Ambrosia_Ijebu/status/1271019014320422912?s=20

They have to recruit so that they can employ more children of the BIG MEN based on "federal character". As new politicians become relevant and "big wigs", and new big men emerge around the nation, they have to get their share of the "national cake"…

— PaulOverdi (@paul_otoh) June 15, 2020

I saw 64bn operational loss and zero revenue on that NNPC statement. I had to check that I was reading correctly. And y'all thought robbery happened under Goodluck Jonathan.🤣🤣🤣

— Chinenyenwa (@chi_nenyenwa) June 15, 2020

Atiku and his friends would finish NNPC abi? Look at a company quoting a N64bn loss and you want that company running..

The Minister of Petroleum has a lot of explaining to do here..

Oh I apologises he is media shy I totally forgot.

We move… pic.twitter.com/Zy3TTnrEE5

— Raymond (@IamTheIroko) June 14, 2020

This 2018 annual report of Kaduna Refining and Petrochemical company limited showing a loss of over 165 billion naira in 2 years is making rounds right now.

Should NNPC be privatized? pic.twitter.com/Or51HeDohY

— Naija (@Naija_PR) June 14, 2020