The Group Managing Director of the Nigerian National Petroleum Corporation NNPC Mikanti Batu has revealed that the country spends between $12 to $15 billion to cover for the operational deficit at the nation’s refineries annually for domestic fuel consumption in the country.
He noted that fuel importation became necessary in order to improve supply and avert scarcity in the country which poses serious threats to the government’s dwindling revenue.
He however assured that the government is investing in additional refinery capacity alongside private investors, who have shown their readiness to hold some equities in the project.
According to the Guardian, figures show that the country’ s three refineries in Kaduna, Warri and PortHarcourt recorded an operational deficit of ₦66.28 billion in 2017.
Breakdown of the deficits showed that Kaduna Refinery and Petrochemical Company ₦32.617 billion; Warri Refinery and Petrochemical Company, ₦22.147 billion and Port Harcourt Refinery, ₦11.51 billion respectively.
The NNPC boss also revealed that the ongoing revamping of the refineries will enhance capacity utilization once completed.
Noting that the corporation had been holding far-reaching discussions with some consortia to get the best funding options towards the refineries’ overhaul.
Recall that the Minister of State for Petroleum, Dr. Ibe Kachukwu had indicated government’s desire to stop fuel importation by next year and in its bid to achieve that target, it has issued license to some private investors who are ready to establish private refineries in the country some of which are at different stages of completion across the country.
NNPC has four refineries, two in Port Harcourt (PHRC), and one each in Kaduna (KRPC) and Warri (WRPC).
The refineries have a combined installed capacity of 445,000 bpd. A comprehensive network of pipelines and depots strategically located throughout Nigeria links these refineries.
In 1983, the Port Harcourt refinery with 60,000 bpd and the tankage facilities were acquired by NNPC from SHELL. Subsequently, a new 150,000 bpd export refinery was built in 1988 and commissioned in 1989.