Group slams NNPCL refinery deal with Chinese firms, demands probe of past $1bn spending

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.