The Nigeria National Petroleum Corporation (NNPC) revealed that it spends a whopping $1.8 billion in 90 days to import fuel.
This revelation was made by the Group Executive Director Upstream of NNPC, Mr Bello Rabiu, during a press briefing.
According to Rabiu, the Corporation spends between $16 million and $20 million on imports daily totaling about $1.8 billion per quarter, adding that the organization had to rely on importation to satisfy local consumption due to the inability of the nation’s refineries to provide the local needs of consumers.
He furthered that a cargo of product, about 40 million litres, as at today costs about $13 million to $14 million dollars, adding that the nation produces about 2.2 million barrels of crude per day but only about one million goes to NNPC through 60 per cent equity in the Joint Venture.
“The average equity crude for sale is not up to one million barrels which means that the total amount of money we can get is about $40 million dollars’’, Rabiu said.
Adding that the Corporation also spent money to produce which reduced the accruals. “We spend about $30 million to produce.
“We try to maximize what is available’’ he said, adding that over 90 per cent of other imports were financed by the oil sector. That is why we said we need to diversify, export more and import less’’, he noted.