NNPCL Refinery: CSOs Kick Against Fresh Chinese MoU, Alleged Missing $3.5bn Questions

NNPCL Refinery: CSOs Kick Against Fresh Chinese MoU, Alleged Missing $3.5bn Questions

  • Civic Centre demands resignation of NNPCL CEO over $3.5 billion refinery rehabilitation spending concerns
  • Nigerians await transparency on refinery funding and performance amid new Chinese partnership fears
  • Call for National Assembly probe into refinery contracts and accountability in Nigeria's oil sector

Civil society organisations under the umbrella of the Civic Centre for Independent Forensic Activists have called for the resignation of the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Bayo Ojulari, over growing concerns surrounding refinery rehabilitation spending and a fresh Memorandum of Understanding (MoU) signed with Chinese firms.

The group said the continued lack of transparency over billions of dollars spent on Nigeria’s refineries, alongside the new foreign partnership, has further weakened public trust in the national oil company.

Nigerians kick against Chinese takeover of refineries
NNPC's GCEO, Bayo Ojulari in the eye of the storm over the MoU with Chinese firms for Nigerian refineries. Credit: NNPC
Source: Facebook

Fresh questions over $3.5 billion refinery spending

In a statement issued on Tuesday and signed by its Executive Director, Edward Abakpa, the organisation said more than $3.5 billion had reportedly been spent on the rehabilitation of the Port Harcourt, Warri, and Kaduna refineries without delivering consistent and sustainable operations.

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According to the group, Nigerians are still waiting for a full public account of how the huge funds were used, what projects were completed, and why the facilities remain largely underperforming despite repeated government assurances.

Abakpa argued that before entering into any fresh agreements, the NNPCL must first provide detailed answers on previous spending.

“The central issue is accountability. Before entering into fresh arrangements, Nigerians deserve a detailed explanation of how over $3.5 billion previously committed to refinery rehabilitation was utilised, what work was actually completed, and why the refineries remain largely non-functional,” the statement noted.

New Chinese MoU raises fresh concerns

The controversy intensified after NNPCL signed a new MoU with Chinese firms, Sanjiang Chemical Company Limited and Xingcheng Industrial Park Operation and Management Company Limited.

The agreement reportedly covers refinery rehabilitation, operations, maintenance, and the possible expansion of refinery-linked infrastructure.

However, civil society groups fear the deal could significantly alter control and management structures within Nigeria’s downstream petroleum sector without sufficient public disclosure.

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They warned that without clear details on investment commitments, technical equity arrangements, and the scope of foreign participation, the new deal risks repeating the failures of previous refinery rehabilitation programmes.

Call for national assembly probe

The group also raised concerns over how the Chinese firms were selected and questioned the long-term implications of the arrangement for Nigeria’s energy sovereignty.

It called on the National Assembly to immediately begin a public investigation into all refinery rehabilitation contracts awarded since 2015, including contractor performance, disbursement records, project outcomes, and funding sources.

The organisation also urged anti-corruption agencies to examine possible procurement breaches and financial leakages linked to refinery rehabilitation projects.

Abakpa said the repeated pattern of huge spending followed by limited operational results reflects a deeper governance crisis within the oil sector.

“It is unacceptable that after spending more than $3.5 billion on refinery rehabilitation over several phases, there is still no clear, commercially viable output from these facilities,” he said.

Demand for leadership change

The civic group insisted that restoring confidence in Nigeria’s oil sector requires both transparency and stronger leadership.

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Nigerians kick against Chinese takeover of refineries
Nigerians demand accountability for over $3 billion spent on repairing Nigerian refineries by the NNPC. Credit: NNPC
Source: Twitter

It maintained that without a proper audit of past spending, every new refinery agreement would continue to attract suspicion from the public.

“We cannot build new partnerships on a foundation of unresolved questions. Until Nigerians are told exactly what happened to the $3.5 billion already spent, every new deal will be viewed with suspicion,” Abakpa added.

The organisation concluded by renewing its call for Ojulari’s resignation, arguing that accountability must begin at the top if Nigeria hopes to rebuild trust in its refinery system and strengthen long-term energy security.

NNPC signs deal with two Chinese firms

Legit.ng earlier reported that The Nigerian National Petroleum Company Limited (NNPC Ltd) has signed a fresh agreement with two Chinese industrial firms to revive the long-troubled Port Harcourt and Warri refineries, in what appears to be one of the strongest moves yet to restore the country’s state-owned refining assets.

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The deal comes after the two refineries reportedly consumed more than $2.4 billion in public funds over the years without delivering significant refined fuel output.

The NNPC signed the memorandum of understanding (MoU) with Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co., Ltd. in Jiaxing City, China.

Source: Legit.ng

Authors:
Pascal Oparada avatar

Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng