Call for Suspension of NNPC’s Deal with Chinese Firms
Former Vice President Atiku Abubakar has demanded that the Nigerian National Oil Company (NNPC) immediately suspend and publicly scrutinize its newly announced “technical equity partnership” with two Chinese firms, Sanjiang Chemical Co., Ltd. and Xingcheng (Fuzhou) Industrial Park Management Co., Ltd. Abubakar’s statement, communicated through his senior special assistant on public communications, Planke Shaibu, raises serious concerns regarding the deal’s implications for Nigeria’s economic future.
Concerns Over Government Transparency
The African Democratic Congress leader criticized President Bola Tinubu’s administration for allegedly attempting to mortgage crucial national assets through opaque agreements that lack technical credibility, transparency, and accountability. He stated, “We demand an immediate suspension and public scrutiny of the technical and equity partnership announced by the NNPC.”
A Repetition of Past Mistakes
Abubakar expressed outrage at what he described as a repeat of past mistakes, especially after the government reportedly squandered over $2.5 billion on a protracted refinery restructuring scandal. He found it shocking that NNPC is now asking Nigerians to place their trust in yet another venture characterized by secrecy and questionable capabilities.
Challenging the Competence of Involved Companies
In his critique, Abubakar referenced an independent assessment of the two Chinese firms engaged in the memorandum of understanding (MoU), revealing that neither possesses the necessary history, technical expertise, or global standing required for revitalizing complex crude oil refineries like those in Port Harcourt and Warri. He emphasized that while Sanjiang Chemical is a legitimate petrochemical company, its core focus lies in surfactants and light hydrocarbon processing, rather than crude oil refining.
Questioning Technical Expertise
Abubakar highlighted the lack of evidence that Sanjiang has ever constructed or managed a full-scale crude oil refinery of comparable size or complexity to those in Nigeria. He pointed out that processing petrochemical derivatives cannot be equated with operating a long-neglected national refinery. Additionally, he called into question the credentials of Xingcheng (Fuzhou) Industrial Park Operation and Management Co., Ltd., asserting that records reveal no substantial experience in petroleum engineering or refinery operations.
Warnings Against Reckless Decisions
The former Vice President further criticized the decision to engage these companies rather than established organizations with proven expertise in refinery engineering. He warned that the administration risks transforming Nigeria’s refineries into “another expensive black hole of failed promises, reckless experiments, and opaque deals.” Abubakar reminded Nigerians of the repeated failures in refinery maintenance and the billions wasted, stating it is unacceptable to celebrate a MoU with firms lacking the requisite technical capabilities.
Financial Viability Concerns
Abubakar also pointed to concerning financial indicators surrounding Sanjiang Chemical, which reportedly reflect declining revenues and significant short-term debt. He posed the critical question: if these companies are struggling financially, how can they undertake the monumental task of revamping two of Africa’s most troubled refineries? The deal appears rushed and inadequately vetted, focusing more on shallow headlines than on long-term national interests. “The NNPC should not treat national assets as tools for bureaucratic experimentation,” he warned.
