NNPC records N287.4bn loss from operations

Over N287.4bn loss is being recorded yearly by the Nigerian National Petroleum Corporation from the operations of its subsidiaries across the country despite the fact that it is meant to be a profitable business venture.

The corporation is losing about N250bn yearly as a result of the inefficiencies of the Pipelines and Product Marketing Company alone, which is one of its subsidiaries, according to figures made available by the national oil company.

The PPMC’s N250bn loss accounts for about 87 per cent of the corporation’s aggregate loss by implication.

Findings by our correspondent showed that aside the huge losses coming from the PPMC, the refineries and contractual arrangements, among other problem areas, were responsible for the remaining 13 per cent of the losses made by the corporation.

Some of the contracts were recently cancelled by the new Group Managing Director of the NNPC, Dr. Ibe Kachikwu, and according to him, an average of $150m is being saved monthly due to the cancellation.

The country is also losing about N10bn as a result of the near-comatose state of the refineries.