NECA Criticizes NNPC’s Agreements with Chinese Firms over Refinery Rehabilitation
The Nigeria Employers Consultative Association (NECA) has voiced strong criticism against the Nigerian National Petroleum Corporation (NNPC) regarding recent agreements with two Chinese companies aimed at revitalizing Nigeria’s struggling refineries. NECA labeled this action as unpatriotic, highlighting the ongoing concerns about the country’s energy sector.
Concerns Over Past Rehabilitation Efforts
Adewale Smut Oyelinde, NECA’s Executive Director, expressed deep concern about the Memorandum of Understanding (MOU) signed on May 4, 2026, which pertains to the recommencement, completion, and expansion of the Port Harcourt and Warri refineries. He emphasized that while the nation urgently requires operational refineries, the historical pattern of lavish spending on rehabilitation—amounting to nearly $1 billion per agreement—has yielded no significant results.
Excessive Spending with Dismal Results
Oyelinde pointed out that the expenditure on refinery rehabilitation in recent years has been staggering, with around $25 billion invested from 2010 to 2023 without achieving any sustainable production. Despite this financial commitment, Nigeria’s state-run refineries continue to be inconsistent and largely non-functional.
Lessons from Past Investments
The NECA Executive Director referred to the $1.5 billion investment in the Port Harcourt refinery made in March 2021, which was supposedly 90% complete by 2026 yet failed to deliver a reliable output of refined products. He reminded stakeholders of the multiple rehabilitation attempts the refinery has undergone since the 1990s, all accompanied by significant financial outlay that has not resulted in lasting improvements.
Call for Transparency and Accountability
Oyelinde urged the NNPC to provide comprehensive information about previous expenditures and audits related to the refineries. He questioned the specifics of the “Technology Capital Partnership” outlined in the recent MOU and expressed skepticism over guarantees to prevent future mismanagement, given the history of delays and costly overruns in past maintenance efforts.
Addressing the Broader Impact of Energy Insecurity
The ongoing energy insecurity in Nigeria has burdened local businesses for over three decades, leading to inflated production costs, extensive foreign fuel expenditure, and job losses. NECA contended that celebrating new agreements amid disappointing outcomes from previous investments is counterproductive and detrimental to national interests.
Advocating for Structural Reforms in the Energy Sector
NECA proposed that privatization or concession of refineries could prove more beneficial than what they term “unlimited Turnaround Maintenance (TAM).” They argue that Nigeria’s industrialization cannot rely on imported fuel or prolonged investments in inactive refineries. The organization maintains that the path forward involves not only immediate repairs to the Port Harcourt refinery—which holds potential for job creation and reduced supply dependence—but also a commitment to transparency, accountability, and an effective business model.
