Paradox of an oil producer (New Telegraph)

Recently, the Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, was full of excitement as he rolled out what he called the achievements of the Corporation in 2018.

Noting that the three refineries in Nigeria have suffered neglect of statutory Turn Around Maintenance (TAM) for an aggregate of 42 years, Baru blamed the volume of import on the epileptic nature of the installations and surge in volume of fuel consumption by Nigerians. The Corporation, being the sole importer of premium motor spirit (PMS) also known as petrol, he said, imported a total of 15,874,734.82 MT of petrol through the Direct Sale Direct Purchase (DSDP) arrangement in 2018, representing 62 per cent increase over the 2017 supplies of 9,807,264.61MT.

As today, the national oil company has 2.98 billion litres, equivalent to over 59 days sufficiency at 50 million litres daily evacuation rate, he said.

While one tonne has 1177 liters of fuel, the country’s imports of 15.874 million mt translated to 18.67899 billion litres. Using the N122 per litre landing cost, checks by New Telegraph showed that the 18.67899 billion litres volume imported worth N2.27883678 trillion. Read more

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