Buhari to hands off oil ministry as NNPC posts another loss

The Nigerian National Petroleum Corporation, NNPC, has again posted a massive loss of N11.22 billion naira for August. Thanks to the minister of petroleum products, President Buhari.

The President has refused to relinquish his powers as the minister of petroleum.

The figure was obtained on the NNPC website detailing its monthly financial and operations report released in Abuja.

Recall that NNPC also posted a trading deficit of N24.18bn loss in its July report.

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The deficits cannot be explained owing to the fact that oil output has almost normalized.

Again, NNPC’s subsidiaries, the Pipeline and Products Marketing Company and Nigerian Petroleum Development Company, are reportedly doing well too.

NNPC posted a profit of N273.74m in the month of May. That result was a reversal of its monthly average loss of N35 billion.

It has, however, failed to sustain the profit-making streak, and has in the last two months, recorded deficits.

This indicates a trading deficit of N11.22bn as against the reported July, 2016 deficit figure of N24.18bn.

It said, “However, it is imperative to note that the existing force majeure declared by SPDC as a result of vandalised 48-inch Forcados export line is a drag to NPDC and the overall group performance.

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“Other factors that negatively impacted on production include sabotage on the export loading line 2, sabotage of Trans Niger Pipeline, Claugh Creek-Tebidaba pipeline and Escravos terminal delivery pipelines.”

Productions from the deep-water assets have remained intact. This partly due to the Militants’ ability to reach these assets.

However, oil facilities in shallower waters seem to be the worst hit by militants.

We think it’s high time the President hands over the oil ministry to trusted technocrats so he can focus of salvaging the economy.