A review of financial and operational figures published by the Nigerian National Petroleum Corporation (NNPC) has shown that the it made a total loss of N411.1 billion in 21 months, the Nigeria Extractive Industries Transparency Initiative (NEITI) has said.
NEITI, in the NEITI Occasional Paper Series, jointly published with BudgIT said NNPC made profits in just two months out of the 21 (January 2015- September 2016) months covered by the report.
According to NEITI, “For the 21 months under review, the NNPC group made a cumulative loss of N418.97 billion in 19 months. Volatility was also noticeable in the group’s losses, ranging from N3.55 billion in January 2016 to N45.49 billion in September 2015.
“The group made profit only in two of the 21 months covered by the NNPC monthly reports under review. This was in January 2015 when the group made a profit of N7.6 billion and in May 2016 when it made a profit of N0.27 billion, with total profit in 21 months coming to N7.87 billion, as against the loss of N418.97 billion, with total loss coming toN411.1 billion”.
The report also noted that the Nigeria crude oil production dropped by 27.23 percent between January 2015 and September 2016.
It stated: “Crude oil production fluctuated in the period under review, with the highest production per month recorded in October 2015 (69.49 million barrels) and the lowest recorded in August 2016 (46.56 million barrels). When the production figures for January 2015 (68.07 million barrels) and September 2016 (49.53 million barrels) are compared, there was a decline in monthly production by 27.23 percent.
“The same trend was noticeable in terms of average daily production per quarter, as 2.16 million barrels were produced daily on the average in the first quarter of 2015 as against the 1.60 million barrels average daily production per quarter in the third quarter of 2016.
“The fall in oil production was largely attributed to growing vandalism and militancy in the Niger Delta region, though production fluctuation was noticeable even before the onset of militant activities. The fall in daily production is likely to negatively impact the implementation of the current budget, given that the budget was predicated on a daily production of 2.2 million barrels”.
NEITI commended NNPC for taking the initiative to provide up-to-date information to Nigerians on the state of the country’s petroleum sector through the monthly financial and operations reports that the national oil company has been publishing since August 2015.
It however called on NNPC to open up more especially by living up to its self-declared commitments to openness, transparency and accountability.
Speaking on the report, the Executive Secretary of NEITI, Waziri Adio said: “What NNPC has done with its monthly reports could be termed a sea-change. From being the poster-boy for opacity, NNPC is voluntarily embracing openness and providing near real-time information about the state of play of our oil and gas sector today.
“This is commendable, but also deserving of close and critical examination. For example, what do the reports, looked at together, tell us about our petroleum sector today and what is the implication of that for the public, for public finance and for petroleum sector reforms? That is the rationale for this special report”