A coalition of oil sector reform advocates has criticized a new agreement between the Nigerian National Petroleum Company Limited and Chinese firms to rehabilitate the country's refineries, describing it as a wasteful repetition of failed strategies.
CEST Raises Concerns Over New MoU
The Centre for Energy Sector Transparency said in a statement on Wednesday that the memorandum of understanding for a proposed technical equity partnership raises concerns about accountability and the management of public funds. 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.
Past Spending Under Scrutiny
CEST's executive director, Dr. Oghenetega Edafe, said the latest move highlights 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 noted that more than $1 billion had previously been approved for refinery rehabilitation and warned that proceeding without auditing earlier expenditures could undermine public trust.
Call for Accountability and Audit
CEST stated that 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 added.
Lawmakers and Anti-Graft Agencies Urged to Act
CEST called on the National Assembly and anti-corruption agencies, including the Economic and Financial Crimes Commission, to conduct a comprehensive investigation into refinery rehabilitation projects over the past decade. 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. CEST 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.
NNPC Dismisses Scrap Sale Claims
In a related development, NNPC Limited 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 authorized 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.
