Group slams refinery deal, demands probe of $1bn spending

The gates of the Port Harcourt Refinery have been sieged by host communities who said they would remain at the gates till their demands were met.

The community demands reconstitution of the Joint Community Relations Committee (JCRC), saying its dormancy must be responsible for the lack of attention to the host communities in the negotiations that led to agreements signed by the NNPCL and two Chinese companies to revamp the Refinery.

The community had said on Monday when the MOU was announced from China that; “The community was not carried along in the MoU and were therefore not abreast of the details of what was signed or contained in the agreement, especially as it concerns the host communities.”

Industry experts thus believe that the NNPCL should have considered the realities of the Niger Delta by reaching the host communities through the NNPCL Community Relations Department ahead of the signing of the Memorandum of Understanding with the Chinese investors, knowing it was going to provoke crisis. They say it was the duty of the NNPCL on behalf of Nigeria to provide peaceful environment as part of their duty and equity.

Leader of the host communities at the gates, Timothy Mgbere, told newsmen that the protest was about the reconstitution of the JCRC whose tenure he said has elapsed.

He said the community without the JCRC does not have any platform to interface with the refinery and NNPCL management.

“So, this new MoU perhaps would have carried the community along if the JCRC was in place”, said Mgbere, President Alesa Graduates Forum.

The Bashir Ojulari-led NNPCL had on Monday signed a Memorandum of Understanding (MoU) with two Chinese firms: Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd to accelerate the rehabilitation, restart, and expansion of the Port Harcourt and Warri refineries.

A section of the host communities led by one Emmanuel Olaka hailed the agreement and promised peaceful atmosphere. This position was supported by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) for allegedly driving what it called an innovative technical equity partnership model. They said this prioritises performance, accountability, and long-term sustainability.

RETROAN said Ojulari’s commitment to moving beyond traditional rehabilitation approaches toward globally aligned operational frameworks was a significant step in repositioning Nigeria’s refining sector for efficiency and profitability.

Sources said the NNPCL should have inaugurated the JCRC to begin community engagement ahead of the MoU to create peaceful instead of toxic atmosphere to welcome the Chinese. The community people have insisted they would remain at the gates until their demand was met. The host communities are said to be made up of Alesa, Alode in Eleme LGA), and Okrika in Okrika LGA.

It was gathered that Okirika JCRC did not change their team, but that the Alesa and Alode JCRCs insist on fresh inauguration for the community to benefit the Refinery takeover.

The monarch of the community is said to have endorsed the nominees except the LGA. Mgbere is said to be head of the new Community Committee. It is the Refinery authority that is expected to inaugurate the new JCRC who would be nominated by the communities.

One of the community relations experts in the area, Emmanuel Kote, told BusinessDay that the MoU signed in China was above the level of the PHRC JCRC. “It is a policy decision of the FG, which ought to have embedded the interests and concerns of the host communities.”

He admitted that the JCRC is the link the host communities have had with PHRC, which represents NNPCL in Eleme, and the communities think that if JCRC was in place, they would have used it to ask questions and engage with NNPCL.

“I do not yet know the details of the MoU the FG/NNPCL signed with the Chinese firms to know if the interests of the communities were accommodated. If they were not accommodated, it is expected that they should be done subsequently as the execution of the MoU progresses.

“That notwithstanding, the standard that the host communities have been demanding is that of Indorama Eleme Petrochemicals Limited where the hosts communities own equities in the Refinery and earn dividends from the equities. The Alesa community in particular is used to owning 10% equity in a housing project coming up in their area by the Mayor of Housing, and this may have sharpened their appetite for equity in projects in their community.

The Petroleum Industry Act (PIA) makes provisions for host communities trust funds, but the PHRC has not constituted one, allegddly hiding behind dormancy of the Refinery and instability of the management since after the PIA came into effect.

Kote advised: “It will be necessary that the NNPCL and the Chinese lessees engage the host communities to resolve the issues. NNPCL has not done well for the host communities of PHRC.”

Energy and Maritime Reporters (EMR), a fast-emerging media-based pressure group that has become an industry watch group, has called for smooth takeover and expansion of the Refineries.

Reacting to the siege, Martins Giadom, the Chairman of EMR, called on all parties involved in the Port Harcourt Refinery takeover project to ensure harmony and maintain proper communication for a seamless transition and timely expansion of the facility. The group stressed that collaboration was critical to avoiding disruptions that could undermine the project’s progress.

Speaking during the Energy and Maritime Reporters Roundtable on RSTV in Port Harcourt, EMR emphasized the need for effective cooperation among stakeholders. The organization noted that a unified approach would strengthen confidence in the process and accelerate the refinery’s rehabilitation and expansion.

EMR also urged relevant Federal Government departments to actively engage and liaise with key stakeholders to prevent unnecessary community tensions and disagreements. It warned that such bickering could derail the smooth takeover and delay the timely expansion of the Port Harcourt Refinery.

The Association reiterated that transparency, stakeholder inclusion, and open communication remained essential to sustaining public trust and ensuring the project delivered on its economic and energy security objectives for Nigeria.

Also, a coalition of oil sector reform advocates has faulted the latest agreement between the Nigerian National Petroleum Company (NNPC) Limited and Chinese firms to revive Nigeria’s refineries, describing the move as a costly recycling of failed policies and evidence of weak accountability in the management of public resources.

The Centre for Energy Sector Transparency (CEST) made its position known in a statement issued on Wednesday by Oghenetega Edafe, its Executive Director, following the announcement of a memorandum of understanding between NNPC Ltd and two Chinese companies for a proposed technical equity partnership.

The agreement is expected to support the completion of rehabilitation works and restart operations at the Port Harcourt and Warri refineries, both of which have remained largely inactive despite repeated government-funded turnaround maintenance projects.

Edafe said the development raises fresh concerns over fiscal discipline, policy consistency, and the lack of accountability for previous investments worth billions of dollars.

“What Nigerians are witnessing is a troubling pattern of policy repetition without reflection.

“The same refineries that have gulped enormous public funds over the years are once again at the centre of a fresh round of agreements, yet there has been no transparent accounting of what has already been spent or why those investments failed to deliver results,” he said.

The group recalled earlier government approvals exceeding $1 billion for refinery rehabilitation projects, warning that entering new agreements without publicly accounting for past spending further erodes public confidence.

“It is unacceptable that after committing over one billion dollars to refinery rehabilitation, the nation is being asked to embrace yet another agreement without a clear and verifiable audit of previous interventions.

“This is not just about policy failure; it is about the potential erosion of public trust in how national wealth is managed,” Edafe said.

According to him, while the proposed technical equity arrangement may appear innovative, it does not excuse the government and NNPC Ltd from addressing past inefficiencies and possible mismanagement.

“The idea of bringing in technical partners with equity stakes is not inherently flawed. However, it becomes deeply problematic when it is introduced as a substitute for accountability.

“Before we speak of new partnerships, Nigerians deserve a full disclosure of how past funds were utilised, who was responsible for project delivery, and why the expected outcomes were not achieved,” he said.

The group warned that without structural reforms and stronger oversight, the new partnership could become another costly cycle with little sustainable impact.

“What is being presented as a strategic shift may, in reality, become another expensive experiment if the underlying governance issues are not addressed.

“Technical expertise alone cannot fix a system that lacks transparency, oversight, and consequences for failure,” Edafe said.

CEST called on the National Assembly and anti-corruption agencies to launch a comprehensive investigation into refinery rehabilitation projects executed over the past decade, including contract awards, fund disbursements, and project timelines.

“This moment demands more than optimism; it demands scrutiny.

“We call on oversight institutions like the National Assembly, Economic and Financial Crimes Commission (EFCC) and others to undertake a forensic examination of all funds committed to refinery rehabilitation, including the recent billion-dollar interventions.”

He added, “Nigerians must know what has been done with their resources and why the country is still dependent on fuel imports despite repeated promises of self-sufficiency.”

The group added that restoring confidence in Nigeria’s oil sector would require more than new agreements, stressing that transparency, accountability, and institutional integrity must become central to reform efforts.