Nigerian refineries have once again reported massive operational losses, but this has not stopped employees from collecting huge loans
According to data from the refineries’ financials, managers approved N4.9 billion in personal and car loans in two years
The three refineries in Warri, Port-Harcourt, and Kaduna have failed to process any crude in over three years
New data has shown managers of Nigeria’s three refineries which have been unable to process a single crude in three years, gave out employees over N4.93 billion in interest-free personal and car loans.
The loans were mentioned in the audited financial statements of the three refineries obtained from the Nigerian National Petroleum Company Limited website by Topnewstv.com.ng.
The loans were granted despite the fact that the refineries report a combined operating loss of N202.7 billion.
According to the report, Kaduna refineries alone gave out loans totaling N2.171 billion to its employees while reporting N78.6 billion loss in the two-year period.
According to the breakdown, employee loans totaled N1.180 billion in 2020, with another N991 million recorded in 2021.
An explanation offered by the company for its loans shows:
“the loans are interest-free loans granted to staff members to purchase motor vehicles, and are usually secured with the employee’s retirement benefit obligation held by the parent company, NNPC”.
Port Harcourt refinery
On the other hand, the Port Harcourt refinery lost N88.97 billion in two years while employees received a N1.37 billion loan.
The breakdown of staff loans revealed that the loans were given to cover staff touring, personal needs, car, and compassion.
In 2021, N666.59 million was issued, while staff received N704.55 million in loans.
Part of Port Harcourt refinery reads,
“The normal term for compassionate loans is one year and that of car loan is maximum of 60 months and these loans are granted at interest free rate.
“The Company is faced with minimal credit risk on these loans as the amounts owed by staff are deducted at source from their remuneration and final entitlement.”
The Warri refinery suffered an operating loss of N35.15 billion in two years.
However, managers of the refinery gave its employees a total of N1.38 billion in personal loans, with a breakdown showing that N637.14 million was given to employees in 2021 and N751.09 million in 2020.
The Warri refinery’s management explained that car and compassionate loans are given to employees without interest and will be repaid in six years and one year, respectively.