Recycling Failure” — Oil Reform Group Criticizes NNPC Refinery Agreement With Chinese Firms

According to Ireporter Online, a coalition of oil sector reform advocates has faulted the latest agreement entered into by the Nigerian National Petroleum Company Limited (NNPC), describing it as a repetition of past failed approaches and a reflection of weak accountability in the management of public resources.

The Centre for Energy Sector Transparency, in a statement issued on Wednesday and signed by its Executive Director, Dr Oghenetega Edafe, expressed concern over the recent memorandum of understanding between the national oil company and two Chinese firms for a proposed technical equity partnership aimed at reviving the Port Harcourt and Warri refineries.

The group noted that the refineries, which have undergone multiple rounds of rehabilitation funded by the government, remain largely non-operational despite significant financial commitments. It argued that the renewed partnership raises serious questions about fiscal discipline, policy consistency, and the handling of previously invested public funds reportedly running into billions of dollars.

Dr Edafe described the development as a recurring pattern of policy repetition without proper evaluation, stressing that there has been no transparent accounting of past expenditures or clear explanation for the failure of earlier interventions to deliver results.

He further warned that over $1 billion had already been committed to refinery rehabilitation projects in previous years, cautioning that entering new agreements without a comprehensive audit of past spending could further undermine public trust in the oil sector.

While acknowledging that the technical equity model may introduce fresh expertise, the group maintained that it cannot replace accountability, insisting that Nigerians deserve full disclosure on how previous funds were utilised, who supervised project execution, and why expected outcomes were not achieved.

The coalition also cautioned that without deep institutional reforms, the latest arrangement risks becoming another costly cycle of investment with little or no sustainable impact, adding that technical partnerships alone cannot resolve long-standing governance failures.

It therefore called on the National Assembly and anti-corruption agencies, including the Economic and Financial Crimes Commission (EFCC), to conduct a thorough investigation into all refinery rehabilitation expenditures over the past decade.

The group concluded that restoring confidence in Nigeria’s oil and gas sector would require transparency, accountability, and stronger institutional oversight rather than repeated contractual arrangements.