‘Recycling Failure’ – Oil Reform Group Slams NNPC Refinery Pact With Chinese Firms

A coalition of oil sector reform advocates has criticised the latest agreement by the Nigerian National Petroleum Company Limited (NNPCL), describing it as a recycling of failed strategies and a sign of weak accountability in the management of public resources.
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‎The group, Centre for Energy Sector Transparency, made its position known in a statement issued on Wednesday and signed by its Executive Director, Dr Oghenetega Edafe.

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Naija News reports that the reaction followed the announcement of a new memorandum of understanding between the national oil company and two Chinese firms for a proposed technical equity partnership.

The agreement is expected to facilitate the completion of rehabilitation work and the restart of operations at the Port Harcourt and Warri refineries, which have remained largely inactive despite several rounds of government-funded turnaround maintenance.

However, Edafe said the development raises concerns about fiscal discipline, policy consistency, and accountability for previous investments running into billions of dollars.

He said, “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.”

‎The group recalled that over $1bn had previously been approved for refinery rehabilitation projects, warning that entering fresh partnerships without auditing past expenditures could erode public trusts.

“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 added.

‎‘New Model Not Substitute For Accountability’

While acknowledging that the technical equity model may appear innovative, the group argued that it does not absolve the government and the NNPC of responsibility for past inefficiencies.

‎‎“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.

Warning Against Repeat Of Past Failures

‎The group further cautioned that without institutional reforms, the proposed collaboration could become another cycle of heavy investment without lasting results.

“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.

The Centre called on the National Assembly and anti-corruption agencies, including the Economic and Financial Crimes Commission, to launch a comprehensive probe into refinery rehabilitation projects over the past decade.

‎“This moment demands more than optimism; it demands scrutiny. We call on oversight institutions like the National Assembly, Economic and Financial Crimes Commission and others to undertake a forensic examination of all funds committed to refinery rehabilitation, including the recent billion-dollar interventions. 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,” he said.

Demand For Transparency

The group added that restoring confidence in Nigeria’s oil sector would require more than new agreements, stressing the need for transparency, accountability, and institutional integrity in the management of public resources.