New report indicates NNPC refineries contribute less than 0.6% to Nigeria’s economy

Reading Time: < 1 minute

A study commissioned by the Nigerian Natural Resource Charter (NNRC) and conducted by the Centre for Petroleum, Energy Economics and Law (CPEEL), University of Ibadan on the contributions of the four refineries owned and operated by the Nigerian National Petroleum Corporation (NNPC) to Nigeria’s Gross Domestic Product (GDP) has showed that their average contribution was just about 0.55 per cent as at 2016, THISDAY reports.

The study also stated that the contribution of the refineries to the GDP of other sectors of the Nigerian economy as at that time was 0.18 per cent, in addition to a -1.69 per cent contribution of the refineries to the gross net output in the country’s economy. A Report of the study was presented at a stakeholders’ workshop on ‘assessing petroleum sector wealth: NNPC’s contributions to the economy,’ recently in Lagos.

It focused on the contribution that NNPC refineries and pipelines have made to the Nigerian economy in 2016. Its estimations were done along the lines of direct contributions; indirect contributions and induced contributions, as well as their contributions with respect to Gross Domestic Product (GDP); Gross Net Domestic Product (GNDP); value-added; indirect taxes; compensation in terms of wages and salaries for employees; as well as employment.

Leave a Reply

%d bloggers like this: