Enough of opaque MOUs on moribund refineries – NECA tackles NNPC

The Nigeria Employers’ Consultative Association (NECA) has tackled the Nigerian National Petroleum Company Limited (NNPC) on its recent signed agreement with two Chinese firms in another opaque attempt to revive Nigeria’s moribund refineries, describing the latest moves as unpatriotic.

Adewale-Smatt Oyerinde, the director-general of NECA, speaking in Lagos on Sunday, said: “While we note that the nation desperately needs functional refineries, however, we cannot ignore the decade-long pattern of billion-dollar rehabilitation contracts that have delivered zero sustained refining output. It will be unpatriotic to endorse another opaque deal while questions on past spending remains unanswered.”

According to him, NECA views with grave concern the Memorandum of Understanding signed on May 4, 2026 between the NNPC and the Chinese firms for the “restart, completion, and expansion” of the Port Harcourt and Warri refineries.

He recalled past futile similar efforts to rehabilitate these billions of dollars spent without results.

“It is on record and apt to say that the nation cannot afford another trail of wasteful spending. In the last few years, $25 billion had been spent with zero value. Between 2010 and 2023, Nigeria expended over N11 trillion – approximately $25 billion – on refinery rehabilitation projects, maintenance, and turnaround programmes, yet the state-owned refineries remain significantly unreliable and non-functional.”

Oyerinde noted that gamble of over $1.5 billion on the Port-Harcourt refinery in March 2021 was still fresh in the minds of Nigerians, and that despite purported claims of 90 percent readiness by 2026, the facility has not produced sufficient barrel of refined product on a sustainable basis.

He recalled that since the 1990s, the Port Harcourt Refinery has endured multiple rehabilitation cycles– 2000-2010, 2012-2015, 2016-2021 – each involving billions expended with facilities that continued deteriorate.

“While the intention might be right, it is, however, important for the NNPC to avail Nigerians sufficient informational explanation on status of past spendings and audits carried out on the refineries.

What are the details of the “technical equity partnerships” of the MOU; with past efforts at turn around maintenance  riddled with delays, cost overruns, and repeated shutdowns, what are the guarantees and safety-nets to ensure the past does not repeat itself at the expense of Nigeria and Nigerians?

He further that the 2021 revamp was reportedly planned to restore PH Refinery to 90 percent of its design capacity at the shortest possible time, but it didn’t, questioning, “How will this latest MOU guarantee Nigerian man-hours, procurement, and technology transfer beyond press statements?

The DG said that Nigerian businesses have paid the price for energy-insecurity for over 30 years – high production costs, forex spent on fuel imports, and jobs lost, and it would be unpatriotic to clap for another MOU while about $25 billion from past revamps produced almost zero result.

He added that the NNPC must earn public trust by operating more transparently in the face of public scrutiny.

NECA, therefore, advocated the privatisation or concession of the refineries over what it described as “endless TAM”.

“We urge the urgent fixing of the “governance model” before fixing the pipes. Nigeria cannot industrialise on imported fuel. But it also cannot develop by burning approximately $25 billion on refineries that don’t work.

We support the revamping of the Port Harcourt Refinery because of its potential for job creation and reducing dependence on limited supply channels – but only with transparency, accountability, and a proven business model. The era of announcing MOUs and TAM while citizens continue to buy fuel at extortionate prices must end. We demand answers, not agreements,” NECA insisted.