Loss of over N154bn by Nigeria's 3 refineries disturbing

Loss of over N154bn by Nigeria’s 3 refineries disturbing – MOMAN

Admin June 17, 2020

The Major Oil Marketers Association of Nigeria (MOMAN) has expressed concern over the N154 billion loss recorded by Nigeria’s three refineries in the 2018 audited accounts published by the Nigerian National Petroleum Corporation (NNPC).

Mr Tunji Oyebanji, Chairman, MOMAN, told the News Agency of Nigeria (NAN) in Lagos on Wednesday, that the loss recorded by the Kaduna, Warri and Port Harcourt Refineries during the period was disturbing.

He said: “The results for some of the divisions are quite disturbing. We, as a country really need to decide whether we want NNPC to operate as a social service or as a fully commercial entity”.

“The refineries in particular show very disturbing numbers and one wonders what their fate would have been in a purely private enterprise.”

Oyebanji said the Federal Government should urgently take a decision whether to sell, privatise or adopt the Nigerian Liquefied Natural Gas Company (NLNG) model for the refineries to stop further loses.

He, however, commended the NNPC for making public its audited accounts for the first time in its history with the publication of its 2018 Audited Financial Statement (AFS) on its website.

“We are happy that the Group Managing Director, NNPC, Mr Mele Kyari’s commitment to transparency is being manifested. This is really commendable”.

“One hopes this level of transparency will be allowed to continue as it’s good for the industry, the economy and the country,” Oyebanji said.

Also, Mr Wilson Opuwei, Chief Executive Officer, Dateline Energy Services Ltd., said the move by the NNPC was a step in the right direction because it showed transparency and accountability.

Opuwei said in spite of the criticisms trailing the performances of the refineries, the publication of the audited accounts would make investors understand the challenges ahead.

“Considering the challenges we are facing in the oil sector and what is happening in the global economy, I think it is a good time that we start declaring our realities now and make ourselves ready for the right investors,” he said. (NAN)