NNPC towers, Abuja.
The Nigerian National Petroleum Corporation (NNPC) Limited, says Nigeria loses $150 million in revenue every day due to to pipeline vandalism.
Umar Ajiya, NNPC Chief Financial Officer (CFO), disclosed this during an interview with Arise TV.
He said that the development had prevented Nigeria from gaining from the high oil price globally as only about 10% produced crude gets to terminal
Ajiya explained that about 100 barrels of crude oil could be sent, but only about 10 barrels will be received at the terminals.
Expressing his frustration over the development, oil companies could no longer tolerate such brazen stealing.
Ajiya added that as a result of the frustration, the oil companies have been declaring force majeure, which had caused the Nigerian government to lose revenue.
He said, “At a point in this country, we had reached 2.3million to up to 2.7 million barrels per day just before the COVID-19 pandemic.
“But with the incessant vandalism and theft, our operators can no longer tolerate such theft levels whereby you send 100 barrels and you probably get 10 barrels at the terminals.
“So, as a consequence of that, some of them have declared force majeure and shut-in, so it is deferred production and consequently deferred revenue for us and the nation.”
Ajiya also defended the N674 billion net profit for 2021 announced by the company, after it was rated low compared to its peers.
He blamed it on hindrances faced by NNPC Limited, which he said people were not factoring into their analysis of the firm’s performance.
“The fact remains that with the Petroleum Industry Act (PIA) in place, such hindrances have been removed.
“So the NNPCL will be able to do better like other companies in terms of performance and profits of dividends to its shareholders.
“Those hindrances that have now been eliminated by the PIA will help us deliver profits in billions of dollars,” the corporation’s CFO added.
