President Buhari spent N100bn on rehabilitation of refineries in 2021— NNPC

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The Nigerian National Petroleum Company (NNPC) Limited spent N100 billion on the rehabilitation of the nation’s refineries in 2021.

The details are contained in the Nigerian National Petroleum Corporation (NNPC) presentation to the Federation Account Allocation Committee (FAAC) meeting on its funding performance for the year.

According to the state oil firm, the fund was used to revamp the facilities throughout the year.

Although the specific refineries were not stated, according to the funding report, NNPC said it spent N8.3 billion every month in 2021 to revamp the refineries.

The facilities under the NNPC’s management include the Port Harcourt Refining Company (PHRC), Kaduna Refining Production Company (KRPC) and the Warri Refining Production Company (WRPC).

The refineries have a combined installed capacity of 445,000 barrels of oil per day.

Despite having four refineries, Nigeria imports its refined petroleum products. As a result, the country spends the scarce foreign exchange (forex) to ensure no scarcity.

Mele Kyari, group managing director of the NNPC, had said the nation’s refineries were deliberately shut down because their operations were no longer sustainable.

In March 2021, the federal executive council (FEC) approved the sum of $1.5 billion for the rehabilitation of the Port Harcourt refinery. Last week, the federal government said it had processed $98 million and N17.2 billion as partial payments for the ongoing rehabilitation works at the refinery.