The Nigeria Citizens Watch for Good Governance (NCWGG) has expressed strong support for the recent refinery partnership between the Nigerian National Petroleum Company Limited (NNPC Ltd.) and two Chinese firms, stating that the agreement could end Nigeria's long-standing dependence on imported petroleum products.
Details of the Agreement
The NNPC on Monday signed a Memorandum of Understanding (MoU) with Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co., Ltd. The agreement aims to drive the rehabilitation, restart, and expansion of the Port Harcourt and Warri refineries through a technical equity partnership model. This involves a proposed technical equity partnership with Chinese companies to complete rehabilitation work and restart operations at both refineries.
Support from Civil Society
Collins Eshiofeh, Chairman of the NCWGG, described the MoU as a strategic intervention capable of reshaping Nigeria's energy sector. In a statement on Friday, he said the deal represents a major opportunity for Nigeria to revive local refining capacity and reduce pressure on foreign exchange caused by fuel importation.
Eshiofeh noted that Nigeria has spent billions of dollars on refinery rehabilitation projects under successive administrations without achieving sustainable results. Previous turnaround maintenance projects repeatedly failed despite huge financial commitments, leaving the country heavily dependent on imported refined petroleum products.
Chinese Expertise
However, Eshiofeh pointed out that the involvement of established Chinese industrial firms marks a significant difference from past arrangements. He cited China's global reputation for delivering major industrial and infrastructure projects, referencing the Abuja–Kaduna Railway, Lagos–Ibadan Railway, and the Lekki Deep Sea Port as examples of successful Chinese-backed projects in Nigeria.
Long-Term Plans
The group stated that the refinery partnership goes beyond ordinary repairs and includes plans for long-term operations, maintenance, expansion, and the development of petrochemical and gas-based industrial hubs. It explained that the MoU is only a preliminary agreement aimed at developing a framework for future collaboration and does not amount to an immediate contract award or direct expenditure commitment by NNPC Ltd.
Sustainable Solution
The organisation maintained that refining crude oil locally remains the only sustainable solution to Nigeria's fuel import dependence. Functional refineries would help conserve foreign exchange, stabilise the naira, and reduce inflationary pressures. While acknowledging the contribution of the Dangote Refinery to domestic refining capacity, the group said Nigeria still needs efficient state-owned refineries to guarantee long-term energy security and stable fuel supply.
Commendation for NNPC Leadership
The CSO also commended the Group Chief Executive Officer of NNPC Ltd., Bashir Bayo Ojulari, for adopting a commercially driven and transparent approach to refinery rehabilitation. It said the current management has prioritised equity partnerships and shared commercial risk instead of relying solely on government-funded rehabilitation programmes.
Alignment with Labour Unions
The group further aligned itself with the position of the Nigeria Union of Petroleum and Natural Gas Workers, which recently endorsed the refinery agreement while calling for transparency and professionalism in its execution. It urged Nigerians to support the initiative, expressing confidence that the agreement would restore confidence in Nigeria's refining sector and strengthen the country's economic outlook.
