The number of workers at Nigeria’s refineries fell by 218 within a year, while the facilities posted a cumulative comprehensive loss of N69.03bn during the review period, data from their financial statements, just released by the Nigerian National Petroleum Company Limited, showed.
NNPC manages Nigeria’s three refineries, which include: the Kaduna Refining and Petrochemical Company, Warri Refining and Petrochemical Company, and Port Harcourt Refining Company.
An analysis of the various financial statements of the three refineries indicated that while KRPC reduced its workforce by 105 workers, WRPC cut down its staff by 113, but there was no mention of staff reduction at PHRC.
The comprehensive loss at KRPC during the period under review was put at N22.89bn, WRPC was N19.63bn, while PHRC posted a loss of N26.51bn.
In the annual report/financial statement of Kaduna Refining and Petrochemical Company for the year ended December 31, 2021, the firm stated that one major area of challenge had been the low operational funding for the company. On personnel, it stated that the staff strength of Kaduna refinery reduced from 630 in the first quarter of 2021 to 525 in the fourth quarter, representing a reduction by 105 workers. The report showed that KRPC’s staff strength at the end of Q1, Q2, Q3 and Q4 2021 were 630, 580, 551 and 525 respectively.
On the operational performance, the firm stated that in the year 2021, no crude oil was received or processed in KRPC due to preparations for the upcoming rehabilitation of the refinery. For KRPC’s financial performance, the report stated that the company posted an operational loss before tax of N36.66bn which represents an increase of 29.83 per cent from N28.23bn in 2020. This was largely due to a surge in depreciation charges as more fixed assets were transferred from CHQ (Corporation’s Headquarters) during the period under review.
However, adjusting for other comprehensive income, the company posted a total comprehensive loss of N22.89bn as against N55.77bn in 2020 representing a decrease of 58.96 per cent in its loss performance.
Nigeria’s refineries have been dormant in terms of crude oil refining for several years, as operators have repeatedly called on the government to address this anomaly.
The National President, Petroleum Products Retail Outlets Owners Association, Billy Gillis-Harry, for instance, said PETROAN was ready to partner the Federal Government in developing both modular refineries and the large-scale ones.
He said, “The government must fix refineries and many times we have made it open that we are ready to partner with the government in getting these assets running as fast as possible. This will help to stop petrol imports and cut down on subsidies.
Read more at: https://punchng.com/nigerias-refineries-lose-218-workers-post-n69bn-loss/
