The Chief Financial Officer (CFO), Nigerian National Petroleum Company Limited (NNPCL), Umar I. Ajiya, has said that Nigeria loses $150 million every two days to pipeline vandalism and sideline production. He spoke during a programme on Arise TV.
He lamented that pipeline vandalism had impacted NNPCL operations significantly, especially in this era of high oil prices.
Ajiya said: “At a point in this country, we had reached 2.3 to up to 2.7 million barrels per day just before Covid-19, but with the incessant vandalism and theft, our operators can no longer tolerate such theft levels that 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 shutin, so it is deferred production and consequently deferred revenue for us and the nation.”
He stated that during the year under review, every NNPCL business was held accountable and that helped to increase revenue and drive down costs.
According to him, an automated funds management system ensures that businesses do not spend beyond a certain percentage of the revenue they make.
He said: “We have tender approval limits set for the businesses; so, the contracting pass has significantly been curtailed and the final say for contracting passes has to happen at the headquarters without compromising operational efficiency and safety.
“We have tried to optimise resources and expenditures where it is absolutely necessary, we have reduced the overhead costs in the refineries, reduced the manpower levels at the refineries, and redirected the workforce at the refineries to the businesses that require the additional workforce.”
, Nigerian National Petroleum Company Limited (NNPCL), Umar I. Ajiya, has said that Nigeria loses $150){kind=link}