Group Criticises NNPC Deal with Chinese Firms, Calls for Probe of Refinery Spending
- CEST, a coalition of oil sector reform advocates, has criticised NNPC's new refinery agreement with Chinese firms as a wasteful repetition of past failures
- The group raised a concern over an alleged $1 billion spent on previous rehabilitation without accountability or a transparent evaluation of results
- It called for a comprehensive investigation into refinery projects to restore public trust and ensure transparency
Abuja, FCT - A coalition of oil sector reform advocates has criticised a new agreement between the Nigerian National Petroleum Company (NNPC) Limited and Chinese firms to rehabilitate the country’s refineries, describing it as a wasteful repetition of failed strategies.
The group, the Centre for Energy Sector Transparency (CEST), said in a statement on Wednesday, May 5, that the memorandum of understanding (MoU) for a proposed technical equity partnership raises concerns about accountability and the management of public funds.
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Legit.ng reports that NNPC Ltd recently announced the deal with two Chinese companies aimed at completing rehabilitation work and restarting operations at the Port Harcourt and Warri refineries, which have remained largely inactive despite multiple rounds of government-funded repairs.
Nigeria's refineries: Concerns over past spending
CEST’s executive director, Dr Oghenetega Edafe, said the latest move highlights what he described as a pattern of policy repetition without proper evaluation of past efforts.
“The same refineries that have consumed huge public funds over the years are again the focus of fresh agreements, yet there has been no transparent accounting of previous spending or why those investments failed,” Edafe said.
The group said that more than $1 billion had previously been approved for refinery rehabilitation, warning that proceeding with new partnerships without auditing earlier expenditures could undermine public trust.
Nigeria's refineries: Group calls for accountability and audit
CEST said introducing a technical equity model does not remove the need to account for past investments.
“While bringing in technical partners is not inherently flawed, it becomes problematic when used as a substitute for accountability,” Edafe said, calling for full disclosure of how earlier funds were spent and why expected outcomes were not achieved.
The group warned that without broader institutional reforms, the new partnership risks becoming another cycle of spending without sustainable results.
“Technical expertise alone cannot fix a system that lacks transparency, oversight and consequences for failure,” Edafe said.
Lawmakers, anti-graft agencies urged to act
CEST called on the National Assembly and anti-corruption agencies, including the Economic and Financial Crimes Commission (EFCC), to conduct a comprehensive investigation into refinery rehabilitation projects over the past decade.
It said such a probe should cover contract awards, disbursements and project timelines.
“This moment demands scrutiny. Nigerians must know how public resources have been used and why the country remains dependent on fuel imports,” the group said.
The group added that restoring confidence in Nigeria’s oil sector would require more than new agreements, urging authorities to demonstrate commitment to transparency, accountability and institutional integrity.
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NNPC dismissed reports of refinery materials being sold as scraps
In a related development, the NNPC Limited has dismissed claims that it is selling scrap materials from its refineries, cautioning the public against fraudulent schemes linked to such reports.
In a statement issued in Abuja on Friday, April 24, Andy Odeh, the company’s chief corporate communications officer, said the national oil firm had not authorised any sale of refinery scrap or equipment.
According to the statement, some individuals have been impersonating representatives of NNPC Limited, falsely claiming they can facilitate the purchase of scrap materials and refinery components.
Source: Legit.ng
