Nigeria’s Refineries Idle, Bleeding Out
It is not entirely surprising that Nigeria continues to experience energy crisis as it is currently experiencing at the moment.
The world's 13th largest oil producer and Africa's largest crude producer has only three refineries – Warri Refining and Petrochemical Company, Port Harcourt Refining Company, and the KRPC - which are barely operational.
About three months ago, reports emerged that the three refineries were operating below capacity and losing tons of cash as well.
That is why Africa’s biggest economy continues to rely on imports, the result of which is persistent scarcity anytime there is hiccup in the supply chain.
A new financial and operations report prepared by Nigeria’s energy company, Nigeria National Petroleum Corporation, NNPC has shown that one of the three refineries, the one in Kaduna did not process any crude oil from June to September this year.
And it even made a loss of 14.43 billion naira within the period.
But it does not end there. The three government-owned refineries, according to the report, lost a total of 16.67 billion naira in the third quarter of this year.
The report indicated that the Kaduna refinery alone lost 3.46 billion naira in June; 3.6 billion naira in July; 3.59 billion naira in August and 3.78 billion naira in September.
The Port Harcourt refinery, which was idle in August, made a loss of 1.05 billion naira in the third quarter while the WRPC recorded a deficit of 4.65 billion naira in the period as it was shut down in September.
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