Nigerian National Corporation of Nigeria (NNPC) silenced critics when it published its financial statement for the first since its 43 years existence.
Expectedly, the accounts expectedly showed the four refineries posted a combined loss of N154.03 billion as at December 2018, a deteriorating financial condition that is irredeemable as government may not have the money to revive moribund assets.
Interestingly, NNPC’s huge expenses are a are hemorrhaging the beleaguered refineries that have not produced a drop of oil over the past few years.
For instance, Kaduna Refinining and Petrolchemical Company Limited, which generated zero revenue, incurred total operating expenses of N23.28 billion as at December 2018.
A breakdown of Kaduna Refinery’s cost structure showed N14.09 billion was used to run Head Office (NNPC) overheads. In short, head office expenses surged by 1027.30 percent from N1.25 billion as at December 2017.
A breakdown of Head Office (NNPC) expenses showed salaries and welfare spiked by 725.05 percent to N2.83 billion, pensions surged 837.65 percent to N3.76 billion respectively.
The corporation is aware that its subsidiary is a ship wreaked in slow motion as it has been lying fallow.
However, a forensic audit by independent and disinterested international accounting bodies will help clarify the obscure items.
Nigerians, who are shareholders in the NNPC, will like to know the reason why such nebulous items have been allowed to balloon out of proportion.
Years of inexplicable operational inefficiencies and poor subsidy policies are the sole reasons the country imports petroleum product to meet the needs of consumers.
The Federal Government is expected to spend N750.81 billion on petrol subsidy in 2020, latest data from the Petroleum Products Pricing Regulatory Agency have shown; this money would have been used to fund infrastructure projects across the country.
Decrepit infrastructure has stunt economic growth as industry activities have been slow over 3 decades; which is why the country is reeling from high