The Federal Government's latest move to engage a Chinese firm to complete outstanding works and oversee the operations and maintenance of the Port Harcourt and Warri refineries has split opinion among energy experts and industry stakeholders.
While some analysts view the deal as a pragmatic step to revive long-idle assets and boost domestic refining capacity, others argue it risks deepening a cycle of waste, insisting the ageing facilities should be scrapped and replaced with new, modern refineries.
The controversy comes amid concerns over transparency and value for money, especially following reports that the refineries were shut down barely months after gulping about N3.6 trillion for rehabilitation.
Calls for transparency
A prominent energy economist, Professor Adeola Adenikinju, called for full disclosure of the Memorandum of Understanding (MoU), stressing that the public deserves clarity on the scope and structure of the agreement. "What kind of arrangement is this? Who is responsible for financing, and who handles technical operations? These are issues that must be clearly defined," he said.
Adenikinju maintained that making the MoU public would enable Nigerians to understand the timelines, obligations, and expected outcomes of the deal, noting that transparency is critical to rebuilding trust in the sector.
He reiterated his long-standing position that government should step back from direct management of refineries, describing the current model as ineffective. "It is clear the existing structure is not working. Management should be transferred to the private sector, with clear performance benchmarks and public accountability," he added.
Strategic importance of refineries
Despite the concerns, the economist emphasised the strategic importance of functional refineries, noting that local processing of crude would significantly enhance value addition, create jobs, reduce poverty, and strengthen Nigeria's energy security. "We should not be exporting crude and importing refined products. The benefits of domestic refining to the economy are enormous," he said.
Opposing views
However, policy analyst Blessing Wikina dismissed the renewed investment in rehabilitation as wasteful, arguing that repeated turnaround maintenance efforts have failed to deliver results. "If you consider how much has been spent over the years, it is clear these refineries are no longer viable. The logical step is to scrap them and invest in new facilities," she said.
Wikina pointed to the success of privately driven refining projects as evidence that modern refineries can be built efficiently if funds are properly managed. She warned that continued government involvement in refinery operations could open the door to further financial leakages. She added that any future investment in refining should be privately funded and managed, without recourse to public funds.
Questions over Chinese involvement
A professor of Microbial Corrosion and Environment Studies and immediate past Vice Chancellor of Federal University of Petroleum Resources, Effurun, Delta State, Akpofure Rim-Rukeh, asked, "What are the Chinese going to do differently?" He said the federal government has not been transparent on what is happening at the refineries and that everything had been hidden from Nigerians. He urged the federal government to reveal what the Chinese are coming to do so Nigerians can monitor and hold them accountable.
Workers' reactions
For the Chairman of Warri Refinery Support Staff Association, Dafe Ighomitedo, the news that an MoU had been signed by NNPC Management with two Chinese companies (Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd), acting as Technical Equity Partners (TEP) for the complete Rehabilitation, Restart and Expansion of WRPC and PHRC came to the Support Staff of WRPC with great excitement, and a fear of uncertainty as to their fate in this new marriage of Nigeria and China.
He said they are excited because there has been a drastic decline of a refinery (WRPC) that once made significant strides in operational efficiency, economic booster of Delta State as well as the host communities, with notable improvements in crude processing and product yield. Now, with this TEP MoU signed with the two Chinese firms, opportunities that will further improve the economic life of the host communities as well as Delta State, and Nigeria at large are identified, particularly in the areas of revamping of Carbon Black and Polypropylene Plants, for allied industries.
Chairman of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) at the Federal University of Petroleum Resources, Effurun branch, Victor Owhofaraye, described the development as a good idea because a lot of the workers at the refinery have been out of work for a long time. He called for a probe of the huge sum the NNPC spent on the rehabilitation that never worked.
