NNPC Unveils Strategies To Make Subsidiaries More Profitable

 
The Nigerian National Petroleum Corporation will  be implementing a bouquet of measures to turn around the fortunes of some of its subsidiaries that have not been profitable.

The Group Managing Director, NNPC, Mele Kyari said this during an exclusive interview with THE WHISTLER.

Three of Nigeria’s refineries operated by the Nigerian National Petroleum Corporation suffered an operating loss in the 2018 financial period.

The loss position of the companies were arrived at based on analysis of their 2018 audited financial statements which were released by the NNPC.

The three Refineries are the 
Kaduna Refining Company, which suffered the highest loss of N64.54bn;  Port Harcourt Refining Company with a total loss of N46.61bn, while Warri Refining Company recorded a loss position of N45.39bn.

Speaking on steps being  taken to make the subsidiaries more profitable, the NNPC Boss told this Newspaper that the Corporation would cut cost,  improve efficiency and  productivity so as to enable Nigeria reap the benefits of the investments made in them.

 
He said, “We will cut cost, produce more. That is a very simple relationship. That is what we are doing.

“We will cut our cost, increase our efficiency and productivity, and then the combination of the two just gives you more money and then the loss is gone.”

He said the Corporation currently has a clear line of sight around the refinery rehabilitation project, adding that rehabilitation work would be starting with the Port Harcourt Refinery..

He said, “I am optimistic that, with the change of approach, we will deliver the Port Harcourt refinery between now and 2023 latest. 

“Also for Kaduna and Warri, we have a different approach to them:a BOT arrangement. BOT means that we will get partners to put their money, repair them and take back their money from the production of those assets.

“And we have significant interests indicated in that process, and they all fit into this same schedule in the sense that we are completing the tender process to select the partners who will do it for us within this year.

“And once that is done, because they do not have as much level of intervention as Port Harcourt needs, the end result is that they will also merge to the schedule of the Port Harcourt refinery, and we will deliver all of them at the same time; and fortunately we can do it.”