A Review of the Nigerian Energy Industry

NNPC records N59bn loss in one month

o2 November 2015, Abuja – The Nigerian National Petroleum Corporation, NNPC, weekend announced a loss of  N59.4 billion in its operation in the month of September 2015. The NNPC in its Monthly Oil and Gas Report for the Month of September, 2015, also revealed a year-to-date loss of N437.9 billion.

Dr. Emmanuel Ibe Kachikwu, NNPC GMD.
Dr. Emmanuel Ibe Kachikwu, NNPC GMD

Specifically, the report noted that the NNPC recorded gross revenue of N1.284 trillion and expenses of N1.722 trillion between January and September 2015, leading to the deficit of N437.9 billion.

On the month-by-month basis, the report stated that the NNPC posted  a revenue of N112.51 billion and expenses of N171.9 billion in the month of September 2015, leading to the loss of N59.4 billion in the month, compared to a loss of N60.67 billion in the month of August 2015.

Commenting on the report, the NNPC said: “76.92 per cent of year-to-date NNPC deficit of N437.89 is accounted for by the Pipelines and Product Marketing Company’s, PPMC, deficit of N336.83 billion.

“The N336.83 billion deficit attributable to PPMC mainly comprises of claimable subsidy of N249.15 billion, that is, 73.93 per cent of PPMC deficit. Other causes of PPMC deficit include claimable PPMC Pipeline repairs/management cost of N73.971 billion and Crude/ Product losses of N48.82 billion due to vandalized pipelines.”

The NNPC had a few weeks ago announced a loss of N378.49 billion in its operations for the first eight months of the year. One of NNPC’s subsidiaries, the Products and Pipeline Marketing Company Limited, PPMC, accounted for majority of the losses.

In the figures presented by NNPC’s Monthly Financial and Operations Report for August, obtained over the weekend, NNPC posted a loss of N60.669 billion and N51.714 billion for the months of July and August, respectively. The loss resulted from expenses being higher than its revenue in the period under review.

Specifically, NNPC recorded a total revenue of N1.17 trillion lower than an expenditure of N1.55 trillion, leaving a deficit of N378.49 billion. In the month of July, NNPC recorded revenue of N149.198 billion and expenses of N200.126 billion, while in August, the group posted N146.617 billion revenue and expenses of N207.287 billion.


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