Senate Rejects NNPC’s N686Bn Revenue

Senate Committee on Petroleum (Downstream) on Thursday rejected the Nigerian National Petroleum Corporation (NNPC) budget saying the corporation did not provide clear details of how it generated N686.44billion from the sale of refined products from country’s refineries.

Senator Magnus Abe, chairman of the committee, said the budget did not show what each refinery generated during the period.

The committee is expected to resume the scrutiny of the budget on return from its break next week.

The NNPC had in its budget for downstream activities to the National Assembly claimed that it realised N686.44billion from the sale of refined products from country’s three refineries in 2012.

For 2012, the corporation had a revenue projection of N802.88billion, but it had only realised N455.3billion as at September.

The breakdown of the proposals showed that while N868.44billion was generated, the operating expenses of the refineries amounted to N654.23billion.

The corporation also embarked on a capital expenditure of N13.9billion during the last fiscal year, bringing the total expenses to N668.33billion and leaving a balance of N18.1billion of the total revenue.

It has, however, projected a higher revenue inflow of N1.003trilion for 2013, with a corresponding total expenditure (operational and capital expenses) of N953.05 billion.

Explaining the shortfall in the revenue target, the corporation said the “low revenue was due to plants’ poor performance.”

The corporation added that the 2013 revenue, operating and capital expenses increased by 25 per cent, 3.5 per cent and 10.36 per cent respectively from envisaged benefits of the Port Harcourt Refinery’s turnaround maintenance and rehabilitation.
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