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  • Business - Economy
  • Updated: July 04, 2020

NNPC COO Resigns A Month After Corporation Reveals Significant Revenue Loss

NNPC COO Resigns A Month After Corporation Reveals Significa

The Chief Operating Officer (CCO ) of Nigerian National Petroleum Corporation (NNPC) for Ventures and Business Development, Roland Ewubare, has resigned from his position. His resignation comes a month after it was revealed that NNPC spent over N58 billion on refineries only to generate N2 billion revenue.

According to a source quoted by The Nation, Ewubare resigned due to family concerns, not disagreement within the NNPC. His letter of resignation was said to have been received by the NNPC on Thursday, after Ajaokuta-Kaduna-Kano pipeline project was flagged off.

Ewubare “wants to have focus on other issues like family affair.” the source said, adding that his resignation was part of his agreement to serve for five years. As earlier stated, Ewubare's resignation follows the disclosure that the national oil company was recording significant loss in revenue.

Nigeria's Investment In NNPC Going To Waste

It was revealed that Nigeria's three refineries recorded combined losses of N154 billion, with Kaduna Refinery recording zero revenue for the period under review (2018). Port Harcourt Refinery reportedly recorded a gross loss of N22.5 billion having recorded N22 billion as processing expenses, but generating only N1.4 billion as revenue and Loss after tax for the year was N45.5 billion. The revenue generated in 2018 was below the N4.8 billion generated in 2017 when N19 billion was recorded as gross loss despite over N23 billion stated as processing expenses, while Loss after tax was N55.7 billion.

For Warri Refining And Petrochemical Company, N1.9 billion was generated as revenue after a cost of sales of N12.7 billion, resulting into a gross loss of N10.7 billion in 2018. Also, Loss after taxation was pegged at N44.4 billion, while compared to 2017, N1.2 billion was generated as revenue with N14.5 billion recorded as cost of sales, leading to a N13.2 billion in gross loss. Loss after taxation N84.6 billion in 2017.

While for Kaduna Refinery, no amount was generated as revenue in 2018, despite N24.6 billion recorded as a direct cost for operation within the same period. This led to a gross loss of N24.6 billion, with no income to show for the amount spent. The story was, however, different, but still terrible, in 2017, when the refinery gulped N92.6 billion as direct cost, but generated N2.2 billion as revenue.

This means over N90.3 billion was gross loss in 2017. According to the NNPC financial report seen by AllNews, Total comprehensive loss for Kaduna Refinery in 2018 was N64.3 billion, while in 2017, N111.8 billion was recorded as Total comprehensive loss.

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