The discovery that the Nigerian National Petroleum Corporation (NNPC) spent over N15 billion to maintain and repair oil pipelines in November 2018 is raising concern among state governments, whose opinion is that the figure can be reduced if necessary steps were taken.
In the report submitted by the NNPC to the Federation Account Allocation Committee (FAAC), the national oil corporation said during the period in review, it spent N1,556,985,671.03 on security and maintenance of pipelines; N154,293,264.32 on pipeline and other facility repairs, N8,746,257,727.19 on marine distribution, N3,353,698,696.33 on pipeline management and another N1,724,039,089.22 on “strategic holding”.
An impeccable source said that at the last FAAC meeting, some state governors were miffed by the NNPC report, pointing out that the cost of these repairs and maintenance were being deducted from revenue that ordinarily should have accrued to the Federation Account.
The NNPC report had listed some of the issues that affected production in the month of October 2018 (which in turn necessitated the need for the repair and maintenance of the pipelines). They include Bonny Terminal that suffered a loss of 710,000 barrels of crude; Forcados that suffered a loss of 1,085,000; Agbami that lost 157,000 barrels; Akpo terminal that lost 162,000 barrels; Brass, 360,000 barrels; Qua Ibo terminal, 165,000barrels; Oyo (not the state) 155,000 barrels; Tulja 682,000 and Erha terminal lost 10,000 barrels.
Total of barrels lost during the period in review amounted to 3,607,000 barrels, or about $183,957,000 or N56,106,885,000 lost in one month, by currents estimates
The FAAC report said Nigeria suffered crude oil pipeline losses of N88,422,130.82 basically from the pipeline segment of CNL- WRPC where 700,344 barrels were pumped, but only 695,535 barrels was received. The report further said that the pipeline at A/Cove-Mosimi and A/Cove-Idimu- Satellite from where 192,590 cubic metres of Premium Motor Spirit (PMS) was pumped but only 170,482 cubic metre of PMS was received resulting in a loss of 22,108 cubic metres or N2,946,554,240.
Another loss of N1,366,919,680 was recorded from the Mosimi-Ibadan pipeline while the Port Harcourt- Aba pipeline suffered a loss of N58,201,777, all amounting to N4,371,675,696.64 loss to the federation account.
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