Reported by: Oahimire Omone Precious | Edited by: Oravbiere Osayomore Promise.
The Nigeria Employers’ Consultative Association (NECA) has raised serious concerns over the recent Memorandum of Understanding (MoU) signed between the Nigerian National Petroleum Company Limited (NNPC) and two Chinese firms for the “restart, completion, and expansion” of the Port Harcourt and Warri refineries, warning that Nigeria cannot afford another failed rehabilitation project. In a statement issued in Lagos, NECA Director-General Adewale-Smatt Oyerinde said it would be unpatriotic to endorse another opaque refinery deal while questions surrounding past spending and failed rehabilitation projects remain unresolved.
Oyerinde recalled that between 2010 and 2023, Nigeria reportedly spent over N11 trillion (approximately $25 billion) on refinery rehabilitation projects, maintenance, and turnaround programmes, yet the nation’s state-owned refineries remain largely non-functional. He specifically referenced the $1.5 billion rehabilitation project approved for the Port Harcourt Refinery in 2021, arguing that despite repeated assurances, the facility has not produced sufficient refined product on a sustainable basis. “The gamble of over $1.5 billion on the Port Harcourt refinery is still fresh in the minds of Nigerians,” Oyerinde said. “Despite purported claims of 90 per cent readiness by 2026, the facility has not been recorded to produce sufficient barrels of refined product on a sustainable basis.”
He further recalled that since the 1990s, the Port Harcourt refinery has undergone several rehabilitation cycles spanning 2000–2010, 2012–2015, and 2016–2021, all involving huge public expenditures without corresponding operational success. While Oyerinde acknowledged that the nation desperately needs functional refineries to reduce dependence on imported petroleum products, he insisted that Nigerians deserve clear explanations on the outcome of previous rehabilitation expenditures before fresh agreements are signed. “It will be unpatriotic to endorse another opaque deal while questions on past spending remain unanswered,” he stated.
NECA questioned the transparency surrounding the latest MoU and demanded full disclosure of the terms of the agreement, particularly details relating to technical equity partnerships, procurement processes, technology transfer arrangements, and safeguards against cost overruns and project delays. The MoU, signed on April 30, 2026, in Jiaxing City, China, brought together NNPC’s Group Chief Executive Officer Bashir Bayo Ojulari and the chairmen of Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd. The agreement outlines a potential Technical Equity Partnership (TEP) to complete outstanding rehabilitation work, operate and maintain the two facilities, and expand their petrochemical and gas-based industrial capacity.
However, energy analysts have also questioned the technical expertise of the selected Chinese firms. Sanjiang Chemical Company Limited is primarily a petrochemical firm focused on ethylene oxide, ethylene glycol, and surfactants rather than crude oil refining, while Xingcheng Industrial Park is focused on industrial park management and infrastructure development, rather than major state-owned engineering firms with proven refinery rehabilitation experience. “What are the guarantees and safety-nets to ensure the past does not repeat itself at the expense of Nigeria and Nigerians?” Oyerinde asked.
The NECA chief further queried how the new arrangement would guarantee genuine local participation, technology transfer, and procurement opportunities for Nigerians beyond press statements. “Nigerian businesses have paid the price for energy insecurity for over 30 years – high production costs, forex spent on fuel imports, and jobs lost. It will be unpatriotic to clap for another MoU while about $25 billion from past revamps produced almost zero result,” he said. Oyerinde urged NNPC to earn public trust by operating more transparently in the face of public scrutiny and also reiterated NECA’s long-standing position that the Federal Government should consider privatisation or concession of the refineries instead of embarking on endless turnaround maintenance programmes.
While the national oil company has described the agreement as a “critical milestone” and a transition from traditional contractor-led rehabilitation to a more performance-driven partnership model, the NNPC’s statement did not specify how much Nigeria would pay for the new rehabilitation. The company said the MoU sets the stage for identifying potential technical equity partners to restart and expand the refineries, with the Port Harcourt and Warri facilities having a combined capacity of 335,000 barrels per day. Until full details of the agreement are disclosed, Oyerinde’s warning continues to resonate among industry watchers who fear that Nigeria may be heading down yet another expensive road to nowhere.
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