The Nigeria Extractive Industries Transparency Initiative (NEITI) has disclosed that the Nigerian Gas Processing and Transportation Company Limited, NGPTC, one of the subsidiaries of the Nigerian National Petroleum Corporation (NNPC) made a profit of N141.324billion between 2015 and 2017.
NEITI however said that the NNPC lost a total of N547billion in its operation during the same period. This was contained in NEITI's Occasional Paper series released yesterday which reviewed the 3 years operations and financial reports of the NNPC.
"One striking feature of the NNPC financial operations report is the disclosure that the Corporation lost the sum of N547billion in its operation between 2015 and 2017. Out of this amount, the NNPC corporate headquarters recorded the highest revenue loss to the tune of N336.268billion. On the contrary, the report revealed that the Nigeria Gas company made a huge profit of N141.324billion,"the report read in part.
NEITI in a statement signed by its director, Communications and Advocacy, Dr. Orji Ogbonnaya Orji, however applauds the Corporation for voluntary disclosures contained in the NNPC Monthly Financial and Operations Report. The transparency agency, however, stressed that its auditors under the EITI framework has not independently verified the information and data from the NNPC reports.
According to the report, "NEITI has not, except for the year 2015, independently validated the data from NNPC. This will be done in ongoing and future reconciliation reports. What has been done here is a preliminary analysis of the data that NNPC has made available for the three-year period. The figures examined here do not represent the sum total of all revenues from the sector, as other payment streams like royalties and taxes from JVs, signature bonuses, transportation rental fees, NESS fees, penalties and others are not covered by the NNPC financial and operational reports."
NEITI however commended the NNPC for the reconciliation of the crude swap under-delivery transaction executed during the crude- for- product- swap. NEITI also urged the Corporation to sustain the new spirit of openness while encouraging the citizens to use the information and data from the NNPC's disclosures to promote public debate required in implementing the on-going reforms in the extractive sector.
On the nation's local refineries operated by the NNPC, NEITI said a review of the NNPC Monthly Report further disclosed that refineries received 15.15 per cent of total domestic crude lifting out of which 41.32 per cent was utilized under the Direct Sale Direct Purchase (DSDP) programme of NNPC. On Refineries and domestic crude utilization, the report disclosed that for the 3years under review, Nigeria's refineries recorded an average capacity utilization of 12.26 per cent. A further breakdown shows that Kaduna refinery had the lowest capacity utilization of 9 per cent while Warri and Port Harcourt recorded 9.73 per cent and 15.4 per cent respectively.